Senator Marco Rubio Letter to SBA Administrator on PPP Agent Fee Caps — Exhibit 6 to OTO Analytics Complaint (Aug. 26, 2021) — Oto Analytics v. Benworth

Summary

Exhibit 6, filed January 24, 2023 as Document 1-6 in Case No. 3:23-cv-01034-GMM, Oto Analytics, LLC v. Benworth Capital Partners LLC, is a letter dated August 26, 2021 from U.S. Senator Marco Rubio to SBA Administrator Isabella Guzman. The letter asks the SBA to clarify its guidance on agent fees for Paycheck Protection Program loans of less than $50,000. It states that the January 14, 2021 interim final rule capped agent fees at one percent for loans of $350,000 or less, 0.5 percent for loans between $350,000 and $2 million, and 0.25 percent for loans of $2 million or greater. It says the rule makes no distinction for loans of not more than $50,000, although Congress increased lender processing fees for those loans. The letter asks for the clarification in writing or through new rulemaking.

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EXHIBIT 6
Case 3:23-cv-01034-GMM   Document 1-6   Filed 01/24/23   Page 1 of 3

 
 
           August 26, 2021 
 
 
The Honorable Isabella Guzman 
Administrator 
U.S. Small Business Administration 
409 3rd Street SW 
Washington, D.C. 20416 
 
 
Dear Administrator Guzman: 
 
I write to request the clarification of guidance issued by the U.S. Small Business 
Administration (SBA) related to agent fees for Paycheck Protection Program (PPP) loans. I have 
heard from several Florida lenders that the existing guidance is overly ambiguous in its treatment 
of fees for PPP loans of less than $50,000. This ambiguity has created confusion and costly 
uncertainty between lenders and loan agents, many of whom have provided vital services to 
sustain local communities, employers, and workers throughout the pandemic.  
 
On December 27, 2020, President Trump signed the Consolidated Appropriations Act, 
2021, which included the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues 
Act. This legislation extended and authorized a second draw of loans from the PPP, a forgivable 
loan program that I authored and has provided more than 11 million emergency loans worth 
nearly $800 billion to struggling small businesses and nonprofits across the country. As part of 
this PPP reauthorization, Congress recognized the need to prioritize the smallest businesses for 
relief, and accordingly, increased lenders’ compensation significantly for processing PPP loans 
of not more than $50,000.  
 
Though Congress made specific changes to lender processing fees for these small-dollar 
loans, SBA guidance with respect to agent fees for these loans has remained the same. On 
January 14, 2021, the SBA and U.S. Department of Treasury issued an interim final rule 
providing guidelines for implementation of the newly amended PPP.1 The rule established caps 
on agent fee collections from lenders, set at one percent for loans of $350,000 or less, 0.5 percent 
for loans between $350,000 and $2 million, and 0.25 percent for loans of $2 million or greater. 
 
Unlike the lender fees enacted by Congress, the rule does not make any distinction for 
loans of not more than $50,000. This potential ambiguity has created confusion between lenders 
and loan agents in my state, and should be remedied by a clarification from the SBA regarding 
how such loans should be treated. I ask that you provide this clarification in writing, or through 
new rulemaking.  
                                                 
1 https://www.govinfo.gov/content/pkg/FR-2021-01-14/pdf/2021-00451.pdf 
Case 3:23-cv-01034-GMM   Document 1-6   Filed 01/24/23   Page 2 of 3

 
Thank you in advance for your prompt reply. 
 
 
 
  Sincerely, 
     
 
 
Marco Rubio 
 
U.S. Senator 
Case 3:23-cv-01034-GMM   Document 1-6   Filed 01/24/23   Page 3 of 3

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