How much can an SBA lender charge me for packaging a loan?
Short answer
A lender may charge a flat fee of up to $2,500 per loan without documenting the work. Above that it must complete SBA Form 159, and percentage fees are limited, under SOP 50 10 8.1, Section A, Chapter 4, Para. C.2.
Packaging means help with applications, a business plan, cash flow projections and related documents (SOP 50 10 8.1, Section A, Chapter 4, Para. C.2.a, about p. 67). The same paragraph sets the limits. 13 CFR § 120.221(a) requires the fees to be reasonable.
- Up to $2,500: a flat fee per loan, with no documentation of the service.
- Above $2,500: the lender must complete SBA Form 159.
- Hourly fees: reasonable, customary and consistent with the lender's similar non-SBA loans.
- Percentage fees: no more than 5% on loans of $150,000 or less and 3% on larger loans, up to $30,000.
The percentage also may not exceed what the lender charges on similar non-SBA loans. At 3%, a $500,000 loan has a $15,000 limit. The $30,000 limit is reached at $1,000,000.
Your protections
- The lender must tell you in writing that you need not buy unwanted services.
- The lender must itemize its fees in writing.
- Two different entities cannot charge you for the same service.
- A lender may not pass through fees for work by its Lender Service Provider.
- SBA may review these fees at any time, and the lender must refund any fee SBA finds unreasonable.
One fee on a split request
A lender may charge only one fee on a split request, such as a term loan and a line. It is based on the combined amount. Technology costs can be part of the packaging fee. Fees vary by lender.
Ask lending partners about your loan
Tell us the amount you need and what it is for. We refer you to lenders that may fund businesses like yours, and it costs you nothing.
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