What has to be attached to SBA Form 159 when fees exceed $2,500?
Short answer
When one Agent's total pay exceeds $2,500, the form needs an itemization and supporting documents. They show the work done, the fee basis and any hourly rate and hours, under SBA Form 159, p. 2.
SBA Form 159 (p. 2) requires three things in the itemization when compensation exceeds $2,500:
- A detailed explanation of the work performed
- Whether the pay is based on an hourly rate or a percentage of the loan
- For hourly work, the rate and the hours spent on each service
How the $2,500 is counted
Fees from the same Agent are added together across multiple services and multiple applications (SOP 50 10 8.1, Section A, Chapter 4, Para. D.8.d, about p. 78). A term loan and a line need separate forms, but their fees combine for the threshold.
Several services on one application go on one form, with each service itemized. In-kind compensation paid by the lender must be itemized too. SBA can request an itemization at any amount (Form 159, p. 2).
Filing
- 7(a): the lender uploads the form and support to E-Tran Servicing or its successor. It must do so within two SBA Form 1502 reporting cycles from initial disbursement.
- 504: the documents go in the Corporate Governance Repository within 30 calendar days after the debenture funds.
The lender keeps an original signature version and all support in its files. Each Agent needs a separate form.
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