SBA Procedural Notice 5000-821479
Summary
SBA Procedural Notice, control no. 5000-821479, effective November 12, 2021, addressed to SBA employees, 7(a) Lenders and Certified Development Companies, announcing a revised SBA Form 159, Fee Disclosure and Compensation Agreement, and revised procedures in SOP 50 10 6 for submitting it. It explains that SBA uses the form to identify Agents, the services they provide and the fees or compensation paid to them by or for a small business applicant to obtain or expedite an SBA-guaranteed loan, and to monitor agent fees and agent-lender relationships. The notice then sets out the submission requirements for new applications.
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Full text
SBA Procedural Notice
TO: All SBA Employees, 7(a) Lenders, and CONTROL NO.: 5000-821479
Certified Development Companies
EFFECTIVE: November 12, 2021
SUBJECT: Issuance of Updated SBA Form 159
and Revised Procedures in SOP 50 10 6 for
Submission of the Form
The purpose of this Notice is to announce the issuance of a revised SBA Form 159, Fee
Disclosure and Compensation Agreement and to revise the procedures set forth in SOP 50 10 6
for submission of the completed form and supporting documentation by SBA Lenders. SBA uses
this form to identify Agents and the fees and/or compensation paid to Agents by or on behalf of a
small business applicant (“Applicant”) for the purpose of obtaining or expediting an application
for a loan guaranteed by the U.S. Small Business Administration (SBA). SBA Form 159 allows
SBA to collect information about Agents, the services they provide, compensation rendered, and
who paid the compensation. SBA also uses this form to monitor fees charged by Agents and the
relationship between Agents and Lenders.
For new applications, SBA Lenders are required to use the revised SBA Form 159 immediately;
however, for applications already in process, SBA Lenders may continue to use the previously
approved version.
Revisions to SBA Form 159
The revisions to SBA Form 159 include the following:
1. Revised instructions to include when the Lender pays an Agent, all parties are required to
sign (SOP 50 10 6, Part 2, Section 5, Paragraph 8.c.); (i) clarify that a separate Form 159
must be completed for each application when an Agent provides services to an Applicant
in connection with multiple applications; and (ii) explain the new procedure for
submitting completed forms and supporting documentation (described below).
2. Revised section regarding itemization and supporting documentation to require a detailed
explanation of work performed; disclosure of whether compensation was paid on an
hourly rate or a percentage of the loan amount, and if the former, the amount of that
hourly rate, and the number of hours spent working on each service performed.
PAGE 1 of 3 EXPIRES: 11/1/22
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
3. Removed references to “Fiscal Transfer Agent (FTA) Form159@colsonservices.com.” No
information should be emailed to Form159@ColsonServices.com as this is no longer an
active email account.
4. Replaced the FIRS number to identify the lending institution with the numeric only
Location ID.
5. Increased the estimated time to complete the form from 5 minutes to 20 minutes as
additional supporting information is required at the time of submission.
Revised procedures in SOP 50 10 6 for submission of SBA Form 159 and Supporting
Documentation
SBA has revised the procedures for SBA Lenders to submit completed SBA Forms 159 and any
required supporting documentation to SBA after disbursement of a 7(a) loan or funding of a 504
debenture. Effective immediately, SOP 50 10 6, Part 2, Section A, Chapter 5, Paragraphs D.8.e.
(for 7(a) Lenders) and E.7.c.iv. (for Certified Development Companies (CDCs)) are revised to
read as follows:
1. Paragraph D.8.e.: 7(a) Lenders must submit a copy of the completed SBA Form 159,
signed by all applicable parties, along with any required supporting documentation
electronically to SBA’s Capital Access Financial System (CAFS) at
https://caweb.sba.gov. A separate Form 159 must be completed for each application
when an Agent provides services to an Applicant in connection with multiple
applications. The completed form and any required supporting documents must be
uploaded into E-Tran Servicing after the initial disbursement on the loan in
conjunction with the Lenders monthly 1502 report. Submission must be within two
SBA Form 1502 reporting cycles. 7(a) Lenders are required to retain an original
signature version of the form and all supporting documentation in their files for
compliance review purposes.
2. Paragraph E.7.c.iv: CDCs must upload a copy of the completed SBA Form 159,
signed by all applicable parties, along with any required supporting documentation
into the Corporate Governance Repository within 30 calendar days after the
debenture funds. The CDC must provide a list of all SBA Form 159 submissions in
the Annual Report (SBA Form 1253) for the fiscal year. A separate Form 159 must
be completed for each application when an Agent provides services to an Applicant in
connection with multiple applications. CDCs are required to retain an original
signature version of the form and all supporting documentation in their files for
compliance review purposes.
Technical issues related to submission(s) should be directed to the CAFS technical support team
at 833-572-0502 or cls@sba.gov
PAGE 2 of 3 EXPIRES: 11/1/22
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
Questions
Questions concerning this Notice may be directed to the Lender Relations Specialist in the local
SBA Field Office.
Dianna L. Seaborn
Director
Office of Financial Assistance
PAGE 3 of 3 EXPIRES: 11/1/22
SBA Form 1353.3 (4-93) MS Word Edition; previous editions obsolete
Must be accompanied by SBA Form 58
Federal Recycling Program Printed on Recycled Paper
File and source
- File
- 2021-11_SBA-Procedural-Notice-5000-821479_Issuance-of-Updated-SBA-Form-159-508.pdf
- Size
- 123,291 bytes
- SHA-256
- abfdf542ae3ed0d055bc758008de83d855a497b36a765972894f8e42e96fc7e2
- Original
- www.sba.gov