SBA Form 159, Fee Disclosure and Compensation Agreement, is the U.S. Small Business Administration (SBA) form that identifies Agents and the fees or compensation paid to them in connection with a 7(a) or 504 loan. The SBA Lender, the small business Applicant and the Agent all sign it. On this page you can fill out the form online on FillingPDF and download or print the completed PDF; the agency's own copy and its submission rules are published by the SBA.
Last updated
What is SBA Form 159?
SBA Form 159, Fee Disclosure and Compensation Agreement, is the U.S. Small Business Administration (SBA) form that identifies Agents and discloses the fees and compensation paid to them by or on behalf of a small business Applicant to obtain or expedite an SBA-guaranteed loan.
The form is for use with the 7(a) and 504 Loan Programs and carries OMB Control No. 3245-0201. According to its printed purpose statement, it implements a statutory requirement under 15 U.S.C. 642. The rules on compensation of Agents and SBA Lenders are in 13 CFR Parts 103 and 120 and in SBA's Standard Operating Procedure 50 10.
On the form you identify the loan, the SBA Lender and the Agent, check the type of Agent, list each service with the amount paid by the Applicant and by the SBA Lender, and give the total compensation paid by each. A section for 504 loans only records a referral fee that a Certified Development Company (CDC) received from a Third Party Lender (TPL).
Three certifications follow, each with its own signature block: the Applicant's, the Agent's and the SBA Lender's. Compensation must be disclosed for loan packaging, financial statement preparation specifically for the loan application, and consulting, broker or referral services. Several roles are not Agents for this purpose, such as an attorney at the loan closing or a real estate agent paid a commission on a sale.
Who needs to file SBA Form 159?
Whenever an Agent is paid by the Applicant or the SBA Lender to assist with an SBA loan application, the SBA Lender, the Applicant and the Agent must all complete and sign this form. The SBA Lender and the Applicant must also date it.
- A separate Form 159 is required for each Agent, including an SBA Lender that performs packaging services.
- All services by the same Agent on the same loan application can go on one form.
- If an Agent serves the Applicant on multiple applications, a separate form is completed for each application.
The SBA Lender must tell the Applicant in writing that the Applicant is not required to use an Agent or representative, including the Lender.
The form says these are not Agents and need not complete it: the Applicant's accountant preparing financial statements in the normal course of business unrelated to the loan; an attorney at the 7(a) or 504 closing; a state-certified or state-licensed appraiser employed by the Lender; a Lender Service Provider (7(a) only) or an individual under an SBA-approved professional services contract with the CDC (504 only); an individual employed by the Lender for a business valuation; an environmental professional employed by the Lender; and a real estate agent receiving a commission on a sale.
A legal entity signs through a duly authorized officer or other entity representative; a partnership signs through a general partner.
When to file SBA Form 159
Complete Form 159 whenever an Agent is paid by the Applicant or the SBA Lender in connection with an SBA loan application. The Applicant must not sign until all required service and fee information is disclosed.
The form sets post-signing deadlines for sending the copy to SBA. For 7(a) loans, the documents must be uploaded in E-Tran Servicing within two SBA Form 1502 reporting cycles. For 504 loans, they must be uploaded in the Corporate Governance Repository within 30 calendar days after the debenture funds.
The SBA Lender keeps the original in the loan file. The form prints an OMB expiration date of 11/30/2024 and states that previous editions are obsolete, so check the SBA's form page for the current edition before you use this one.
Documents you need
- Itemization and supporting documentation, attached when the aggregate compensation charged by the same Agent exceeds the threshold printed on the form. It must give a detailed explanation of the work performed.
- For compensation based on an hourly rate: the hourly rate and the number of hours spent on each service, as part of the itemization. The itemization must also say whether compensation is hourly or a percentage of the Loan amount.
- Itemization for any compensation, regardless of amount, when SBA requests it in its discretion.
- A separate completed and signed Form 159 for each Agent that has or will receive compensation in the transaction.
How to fill out SBA Form 159
Select the loan program
At the top of the form, check 7(a) Loan or 504 Loan, depending on the program the application belongs to.
Enter the loan and lender details
Fill in SBA Loan Name, SBA Loan Number (10 digit number), SBA Location ID (numeric only) and SBA Lender Legal Name.
Identify the Agent
Enter the Agent's name in Services Performed by (Name of Agent), then the Agent Contact Person and Agent Address. Complete one form for each Agent.
Check the type of Agent
Under Type of Agent, check one option such as SBA Lender, Consultant, Third Party Lender ("TPL"), Independent Loan Packager, Accountant preparing financial statements specifically for SBA loan application, or Referral Agent/Broker. Use Other and describe it if none fits.
List services and who paid
In the services table, enter the amount for each service (loan packaging, financial statement preparation, broker or referral services, consultant services, or other) under Amount Paid by Applicant or Amount Paid by SBA Lender, not both for the same service.
Enter total compensation
Enter Total compensation paid by the Applicant and by the SBA Lender in the spaces provided.
Mark the itemization box
Check the itemization box and attach the itemization and supporting documentation when the compensation exceeds the threshold printed on the form, covering the work performed, hourly or percentage basis, and hours and rate where hourly.
Complete the 504-only section
For a 504 loan only, if the CDC received a referral fee from a TPL, check the box and give the amount of the fee, the TPL Name and the TPL Address.
Collect the Applicant's signature
The Applicant's authorized representative signs, dates and prints name and title. Do this only after all services and fees are disclosed.
Collect the Agent's and Lender's signatures
The Agent's authorized representative and the SBA Lender's authorized representative each sign, date, and print name and title in their own certification blocks.
Review and download the PDF
Check that the totals, Agent type and signatures are complete, then download or print the completed PDF from FillingPDF and give it to the SBA Lender for filing as described under How to submit.
How to submit SBA Form 159
The SBA Lender handles submission: it keeps the original and uploads a copy electronically.
- Loan file: All SBA Lenders must retain the original Form 159 in the Loan file.
- Electronic copy to SBA: Submit a copy of the completed form, signed by all parties, with its supporting documentation, to SBA's Capital Access Financial System (CAFS) at https://caweb.sba.gov.
- 7(a) loans: Upload the documents in E-Tran Servicing within two SBA Form 1502 reporting cycles.
- 504 loans: Upload the documents in the Corporate Governance Repository within 30 calendar days after the debenture funds.
Do not mail the form to the SBA Record Management Division or OMB addresses printed in the burden notice; those are for comments on the burden estimate only, and the form says not to send forms there. FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Listing fees that are contingent on loan approval. The form says SBA does not allow contingency fees or charges for services not reasonably necessary for the application.
- Showing the same service as paid by both the Applicant and the SBA Lender. The Agent may not be compensated by both for the same service.
- Passing an SBA Lender-employed Agent's fees to the Applicant. Those fees must be paid by the SBA Lender.
- Using one form for several Agents, or one form for several loan applications. The form requires a separate Form 159 per Agent and per application.
- Having the Applicant sign before all required services and fee information is disclosed.
- Omitting the itemization and supporting documentation when the aggregate compensation of the same Agent exceeds the printed threshold; fees from multiple applications or services are added together.
- Signing for a corporation or LLC without a duly authorized officer or entity representative, or for a partnership without a general partner.
- Skipping the check that the Agent is not debarred, suspended or otherwise excluded (see www.sam.gov), which the SBA Lender must ensure and certify.
- Mailing the form to the Washington, D.C. addresses in the burden notice instead of uploading it as the form directs.
Frequently asked questions
What is SBA Form 159 used for?
SBA Form 159 is the Fee Disclosure and Compensation Agreement used with 7(a) and 504 loans. It identifies each Agent and the fees or compensation paid to that Agent by or on behalf of the Applicant, as a statutory requirement under 15 U.S.C. 642.
Who has to sign SBA Form 159?
The SBA Lender, the Applicant and the Agent must all complete and sign it whenever an Agent is paid by the Applicant or the Lender. The Lender and Applicant must also date it. Entities sign through a duly authorized officer or representative; partnerships through a general partner.
Do I need a separate Form 159 for each Agent?
Yes. A separate form is required for each Agent that has or will receive compensation, including an SBA Lender doing packaging. Services by the same Agent on the same application can share one form, but multiple applications need separate forms.
Does an attorney or appraiser have to complete Form 159?
No for an attorney at the 7(a) or 504 closing, or a state-certified or state-licensed appraiser employed by the Lender to appraise collateral. The form lists these among roles that are not Agents, together with a real estate agent paid a commission on a sale.
When do I need to itemize the fees on Form 159?
Itemize when the aggregate compensation charged by the same Agent exceeds the threshold printed on the form, adding fees across applications and services. SBA may also request an itemization and supporting documentation for any compensation, regardless of amount.
Where do I submit SBA Form 159?
The SBA Lender keeps the original in the loan file and submits a copy, signed by all parties with supporting documentation, to SBA's CAFS at https://caweb.sba.gov. 7(a) documents go to E-Tran Servicing and 504 documents go to the Corporate Governance Repository.
What is the deadline to upload SBA Form 159?
For 7(a) loans, upload within two SBA Form 1502 reporting cycles in E-Tran Servicing. For 504 loans, upload to the Corporate Governance Repository within 30 calendar days after the debenture funds.
Can I fill out SBA Form 159 online on FillingPDF?
You can fill out the PDF online on FillingPDF and download or print it. FillingPDF is an independent service, is not affiliated with the SBA, and does not file the form; the SBA Lender submits it through the SBA's channels.
Can an Agent be paid only if the loan is approved?
No. The form says SBA does not allow contingency fees, which are fees paid only if the loan is approved. It also disallows charges for services not reasonably necessary in connection with an application.
Ready to fill out SBA Form 159?
Fill out SBA Form 159 now