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SBA Hot Topic Tuesday — SBA Proposes Changes to Loan Applicant Fees

October 9, 2018

By Bob Coleman
Editor, SBA Hot Topic Tuesday

SBA Hot Topic Tuesday — SBA Proposes Changes to Loan Applicant Fees

SBA has published a proposed rule change impacting fees by SBA 7(a) and 504 loan applicants

SBA to Limit Loan Packaging Fees Paid by the Applicant

  • $2,500 for loans less than $350,000
  • $5,000 for loans over $500,000

Lenders can recoup out-of pocket costs such as filing and recording fees.

Lenders may only charge one fee for multiple loans.

Lenders will be able to charge more than 2% for extraordinary servicing fees for EWCP and CAPLines

SBA to Cap Loan Agent and Loan Service Provider Fees

SBA wants to eliminate the “two-master” rule that allows loan agents and LSPs to collect fees from the applicant and the lender “and being compensated by both parties in connection with the same loan application.”

SBA believes there are “numerous” instances when an applicant has been erroneously charged for services that were provided for the lender, not the applicant.

SBA to Cap Fees an agent/LSP may change an applicant:

(1) For loans up to and including $350,000: A maximum of up to 2.5% of the loan amount, or $7,000, whichever is less;

(2) For loans $350,001-$1,000,000: A maximum of up to 2% of the loan amount, or $15,000, whichever is less;

(3) For loans over $1,000,000: A maximum of up to 1.5% of the loan amount, or $30,000, whichever is less.

You may comment on the proposed rule until November 27th.

Tomorrow: SBA’s New Personal Resource Test Proposed Rule

Read the Notice here.

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