SBA Loan Packaging and Referral Fees – Know the Form 159 Rules
Lenders must know SBA’s standard of lender’s certifying SBA Form 159 fees are “reasonable and satisfactory.” PPP loan agent fees add a new dynamic to staying prudent.
The problem is the wording offers little guidance about loan packaging and referral fees, “The representations of services rendered and the amounts charged as identified in this form are reasonable and satisfactory to it.”
But, SBA does say penalties for noncompliance are stiff. Borrower refunds and SBA guaranty repairs are threatened. And, of course, buried in the regs is the catchall warning, “Violation of any of the SBA loan Program Requirements regarding SBA Form 159 . . .may result in SBA’s suspension or revocation of the privilege of conducting business with the SBA.”
Fortunately, Coleman webinar professional instructors Bob Coleman and Lance Sexton have over 50 years of experience grappling with thorny SBA lending program complex, gray-area issues.
Lance will give you the best-practice tools you need to know to how to set reasonable fees, charge reasonable fees and how to document fees in a manner satisfactory for SBA.
This Coleman webinar will put everything into context, what’s important, and what’s not, and give you a best-practice guide to make sure you are in compliance with the new SBA regulations for SBA Form 159 — “Fee Disclosure and Compensation Agreement.”
- SBA Definition of an Agent
- Agent Fees that must be Disclosed
- Definition of a Loan Service Provider
- Loan Service Provide Fees that must be Disclosed
- Fees that May be Charged to the Borrower
- Fees that May not be Charged to the Borrower
- Allowable Loan Packaging Functions
- How to set Reasonable Loan Packaging Fees Satisfactory to SBA
- How to Calculate Hourly Loan Packaging Rates
- Loan Packaging Fees as a Percentage of the Loan Amount
- Maximum Limits on Loan Packaging Fees
- How to Document Loan Packaging Fees
- Allowable Financial Statement Preparation Fees by the Agent
- Allowable Consulting Fees
- Allowable and Documentation of Broker Fees
- Allowable and Documentation of Referral Fees
- Fees Paid by the Borrower that do not need to be Disclosed
- Fees Charged to the Borrower that do not need to be Disclosed
- The Agent Two-Master Rule of Receiving Compensation from the Borrower and the Lender
- Defining Reasonable Fees paid by the Third-party Lender to the CDC
- Documenting Fees paid by the Third-party Lender to the CDC
- Defining Reasonable Satisfactory Broker Referral Fees paid by the SBA 7(a) Lender
- Documenting Broker Referral Fees paid by the SBA 7(a) Lender
- Documenting SBA BDO Commissions
- Applicant’s SBA Form 159 Certifications
- Agent SBA Form 159 Certifications
- Lender SBA Form 159 Certifications
- Logistics of transmitting and filing SBA Form 159
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Bob Coleman, Publisher, Coleman Report
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Lance Sexton, Coleman Faculty Instructor
Lance Sexton served as Deputy Director of the SBA Little Rock Commercial Loan Servicing Center managing the Servicing of SBA Loans, the liquidation of SBA Express Loans, and the Liquidation of SBA 504 loans in a 24 state area. Lance has 30 years of experience in the origination, servicing, and liquidation of SBA Loans, ten years of experience directly managing portfolios of SBA loans that are both performing and nonperforming, and six years of experience as a small business owner.
Bob Coleman is the Author of “Money Money Everywhere and Not a Drop for Main Street.” He is the Publisher of the Coleman Report, a trade newsletter and website for SBA and small business lenders. He produces online training videos and webinars for small business lenders to teach them to make less risky loans to Main Street.
Certificates of Participation
All Coleman Webinar attendees will receive a certificate of participation. This documents your continuing education history for SBA and your regulators.
We will automatically forward a certificate of participation for those who are registered to attend the webinar via GoToWebinar.
If you have purchased the unlimited site license and would like certificates for all who attend simply forward their names and email addresses to jeanne@colemanreport.com. She will email the certificates to all attendees.
Questions
Questions are strongly encouraged. There are two ways to ask a question. The first is to ask the question via the chat box on the GoToWebinar dashboard. The second way is to send an email to joseph@colemanreport.com. Also, feel free to ask pre-webinar questions.
About Coleman Webinars
Coleman is the largest producer of small business banking video webinars and online training for the banking industry.
Our faculty are professional instructors are the absolute experts in their fields.
Why a Coleman Training Webinar?
It’s very cost effective. No airfare, no hotels. Just cram as many people as you wish into your conference room and turn on the computer. You have several options to view the program. You may watch on screen, or listen in on your phone.
You can choose to have any many connections nationwide as you wish when you purchase unlimited access for only $589.
A great benefit of the program is that you may have your questions answered by the faculty. All of our webinars are recorded. Buyers of the unlimited site license option will receive a DVD recording of the event to share with anyone you wish.
A transcript of the program is also provided to purchasers of the unlimited site license.
How it Works
We use GoToWebinar for the webinar platform. You will receive a link that will direct you to an Internet site to view the presentation. If you would like to test this process to make sure you will be able to access the link through your system’s firewall, just send an email to joseph@colemanreport.com, and he will schedule a test run.
Accessing GoToWebinar
There are two ways to access the webinar. The first is to simply click on the link we will provide when you register.
If you have a firewall issue, or you can’t get the GoToWebinar link to work, don’t panic!
The second way to access the webinar is directly from the GoToWebinar website. You will simply need to input the webinar ID and access code. These will also be provided when you register, and again the day before the webinar when we distribute the handouts.
Note we will open the webinar for attendees to join at 12:00pm ET. This will give each attendee two full hours before the webinar begins to troubleshoot any technical issues. Call (818) 790-4591 if you need assistance.
All Coleman Webinar Speakers are seen Live via Video Stream
You will see our speakers live through a video feed. You may customize the size of the speaker and PowerPoint presentations by clicking on the webcam button on the GoToWebinar dashboard. You may position the speakers at the top, bottom, right or left hand sides. You may also choose to eliminate the video stream and just view the PowerPoint.
Telephone Only Option
You may also choose to listen to the program on your telephone. The phone number will be provided with the handouts.
PDF Handouts
You will receive the PDF handout via email the day before the event. These may be distributed to all of your attendees.
Replay Link
If something comes up and you miss any part of the webinar, or there are technical issues such as a power failure, Internet dropout, fire alarm drills, actual fires or, earthquake (yes that has happened!) simply email joseph@colemanreport.com and he will send you a link you may watch all or part of the webinar at your leisure. There is no charge for this service.
The Fine Print
1) The single user registration fee of $489 is based on location not attendance. You may have as many people in one location attend. You may distribute the materials to anybody in your company.
2) For only $100 more ($589), you may invite as many people from your institution from as many locations as you wish. (You also get the reply link and transcript!) We will forward you a link that allows you to sign up as many people as you wish.
3) Substitutions are allowed at no charge.
4) Cancellations receive a 100% credit for any Coleman product.
5) As with all our products, we offer a 100% money back satisfaction guaranty — no questions asked.
1) Previous customers need only to send an email to joseph@colemanreport.com with “Register SBA Form 159 Webinar” in the Subject Line. We will do all the paperwork and charge your credit card on file, or send you a PayPal request.
2) Call Joseph Coleman at Customer Service at 818-790-4591 extension 1
3) Fax the order form to: 818-790-7859
4) Mail the order form to: Coleman Publishing, 28081 Marguerite Pkwy, #4525, Mission Viejo, CA 92690
5) Click “Add to Cart” to pay using PayPal
Bob Coleman
Editor, Coleman Report
28081 Marguerite Pkwy #4525
Mission Viejo, CA 92690
(818) 790-4591
(c) 2018 All Rights Reserved