How much can an SBA loan broker or packager charge?
Short answer
A percentage fee may not exceed 3% on loans of $50,000 or less, 2% up to $1,000,000 and 0.25% above that. The total limit is $30,000. SOP 50 10 8.1, Section A, Chapter 4, Para. D.7 sets these.
SBA calls brokers, packagers and consultants Agents. SOP 50 10 8.1, Section A, Chapter 4, Para. D.7 (about pp. 76-77) lets an Agent charge by the hour or by a percentage of the loan.
Percentage limits
- $50,000 or less: 3%
- Over $50,000 up to $1,000,000: 2%
- Portion over $1,000,000: 0.25%
- Total limit: $30,000
That works out to $10,000 on a $500,000 loan and $22,500 on a $2,000,000 loan. If one Agent provides several services, the combined fee must stay within these limits.
Hourly fees
SBA sets no hourly maximum. Fees must be reasonable and customary for the work done, with the rate and time documented.
Rules for both methods
- Fees over $2,500 must be supported by documenting the service.
- An Agent may not charge a standard or flat fee to all applicants.
- An Agent may not charge a contingency fee.
- Services must be reasonably necessary to the application.
- All fees must be disclosed on SBA Form 159.
SBA may review fees at any time, and an Agent must refund any fee SBA finds unreasonable or impermissible.
SBA does not require you to use an Agent. A lender's own fee limits are different.
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