SBA Response on PPP Agent Fee Caps — Exhibit 7 to OTO Analytics Complaint (Sep. 14, 2021) — Oto Analytics v. Benworth

Record facts

Exhibit 7 to OTO Analytics Complaint, Case No. 3:23-cv-01034-GMM · No. 3:23-cv-01034-GMM · Doc. 1-7 · 2021-09-14 · Docket on CourtListener

Full text

EXHIBIT 7
Case 3:23-cv-01034-GMM   Document 1-7   Filed 01/24/23   Page 1 of 3

U.S. SMALL BUSINESS ADMINISTRATION 
WASHINGTON, D.C. 20416 
Sent Via Email: Chris@fountainheadcc.com; BNavarro@BenworthCapital.com; BMirenda@sedco504.com 
September 14, 2021 
Mr. Chris Hum 
Founder/CEO 
Fountainhead SBF 
Mr. Bernie Navarro 
Founder/CEO 
Benworth Capital Partners 
Ms. Brooke Mirenda 
President/CEO 
Sunshine State Economic Development Company (SEDCO) 
Re: August 16, 2021 Letter to the Administrator 
Dear Messrs. Hum and Navarro and Ms. Mirenda: 
Thank you for your letter to Administrator Guzman dated August 16, 2021, expressing your concern that the 
Small Business Administration (SBA) has not issued guidance regarding the maximum loan agent fees that 
lenders could pay for referrals of Paycheck Protection Program (PPP) loans. The Administrator has asked me to 
respond on her behalf. 
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Pub. L. 116-136) stated the fees that 
SBA would pay to lenders for processing PPP loans and provided SBA with the authority to set limits on agent 
fees. 
On January 14, 2021, SBA published an interim final rule implementing updates to the PPP as a result of the 
enactment of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Pub. L. 116-260). 
That interim final rule included the following guidance regarding fees paid to an agent who provides assistance 
in connection with a PPP loan, including referral of the loan to the lender: 
"Agent fees may not be paid out of the proceeds of a PPP loan. If a borrower has knowingly retained an 
agent, such fees will be paid by the borrower. A lender is only responsible for paying fees to an agent 
for services for which the lender directly contracts with the agent. The total amount that an agent may 
collect from the lender for assistance in preparing an application for a PPP loan (including referral to the 
lender) may not exceed: 
a. One ( 1) percent for loans of not more than $350,000;
b. 0.50 percent for loans of more than $350,000 and less than $2 million; and
c. 0.25 percent for loans of at least $2 million.
Pagel of2 
Case 3:23-cv-01034-GMM   Document 1-7   Filed 01/24/23   Page 2 of 3

The Act authorizes the Administrator to establish limits on agent fees. The Administrator, in consultation 
with the Secretary, determined that the agent fee limits set forth above are reasonable based upon the 
application requirements and the fees that lenders receive for making PPP loans." 
We hope that this information is helpful and thank you for your commitment to the nation's small businesses. 
Very truly yours, 
SUSAN 
STREICH 
Susan E. Streich
Digitally signed by SUSAN 
STREICH 
Date: 2021.09.14 14:29:48 
-04'00' 
Director - Office of Credit Risk Management
Cc: 
Isabella Guzman, Administrator - Small Business Administration 
Patrick Kelley, Associate Administrator - Office of Capital Access 
John Miller, Deputy Associate Administrator - Office of Capital Access 
Dianna Seaborn, Director, Office of Financial Assistance 
Page2of2 
Case 3:23-cv-01034-GMM   Document 1-7   Filed 01/24/23   Page 3 of 3

File and source

File

gov.uscourts.prd.175040.1.7.pdf

Size

136,373 bytes

SHA-256

25ea01ed4c360e0868c205a0ac19a162553c251f5e1c8de71dabafcf3cf702b7

Our copy

gov.uscourts.prd.175040.1.7.pdf

Original

PACER (login required)