You must complete an SBA 159 for each agent or reference used during the application process. For example, if three agents helped them secure your credit, you must complete three different SBA 159 forms. Fortunately, it should not take long to complete this form, as it is a relatively short document. Below you will find the steps you need to take to send this form: Check carefully the information provided. If you notice any errors or have any questions, contact your agent and SBA lender before signing the document. Submitting false information can lead to lawsuits on your part or your agent. Form 159 is for all entrepreneurs applying for an SBA 7 (a) or 504 program. Until recently, each program had its own form, but the SBA combined the two in November 2018. You would also use this form to indicate if your lender has paid a fee to a partner agency such as SmartBiz for the referral as a borrower. As a general rule, you must fill out a form for each agent you have hired. Why is this form necessary? By dividing these fees, lenders and agents cannot use borrowers with unscrupulous fees and fees. If everything is disclosed to SB, borrowers will be protected and lenders will have to be honest and open. SBA Form 159D, royalty information form and compensation agreement is a form used by business owners to indicate that they have hired an assistance officer for their disaster credit application (SBA).
Keep some sort of record on how you walk along, which needs a form, so that when it`s time to fill it out and archive it, you have all the information ready to go. You`ll be so happy that you`ve thought ahead about streamlining the process if you get the chance. However, if you do it alone, it is essential to make sure that you have all the form you need and that they are all properly filled out. We will specifically follow the SBA 159 form so that you are sure to process this specific part of your SBA loan application. (And a note: once you`re done here, we can also help you with the SBA 912 form – but one thing at a time!) Here`s everything you need. If you work with an agent who has already performed SBA services, they should have an idea of what the SBA considers a reasonable fee for the amount of work it does for you. If not, you should consult the SBA or your lender to check. If the SBA thinks you paid too much, your lender may have to pay back some of its compensation. If the SBA feels that your agent has charged you too much for his services or for unnecessary expenses, he can ask your agent to give you a partial or full refund. Here you may need the above listing. If the total amount is more than $2,500, your agent must provide you with a detailed schedule for your expenses.
The agent then prints and signs his name and gives the full information about the business contact. Form SBA 159 is a form closely related to SBA 159D. The purpose of the two forms is similar, but Form SBA 159 is used in loan programs 7 (a) and 504. Depending on the program, the form requires the signatures of the SBA lender or the Certified Development Company representative for certification. Form SBA 159 is neither an application form nor a loan form. This is a “booking form and compensation agreement” that you may have to file as part of your SBA loan application if you or your lender hires a credit officer, referral agent, broker, accountant, lawyer or advisor to help them prepare or secure your SBA loan.