A note for 504/CDC loans: On your form, the lender`s certification will be replaced by a “CDC Certification” section. This is because certified development companies (the CDC) certify all the agents used. Sometimes the CDC can act as a reference agent for a third-party provider. If this is the case, make sure that the CDC also discloses any fees it has received from that third party. You will need this form if you have used what the Small Business Administration calls an “agent.” Deciding on this is the most nuanced part. This applies to both SBA 7(a) loans and SBA 504/CDC loans. You`ll need to fill out a specific form, depending on the type of loan program you`re applying for – you can find 159 for SBA 7(a) loans here and 159 for SBA 504 loans here. The only trick is to make sure that the applicant`s name matches the name on your SBA loan application and on all federal tax forms. If you used your personal name in these forms, use your personal name here. However, if you submitted these documents with your company name, use them under this form. Make sure that the name of the applicant you are using matches all your forms so that they can be easily found.
According to a study published by the SBA`s inspector general, loan applicants filed 51,000 Form 159 filings between 2010 and 2014, 37 percent of which were errors. [1] Igitt. Some included missing or invalid credit numbers, no compensation or referral fees, incomplete lender agents or compensation records, or a combination of multiple errors. Be sure to check that you have filled everything out and that you have filled it out correctly will save you from problems later. Perhaps the hardest part of Form 159 is deciding whether to fill it out. If you`ve hired someone — a lawyer, a broker, a loan packer — to help you with your SBA loan, you`ll need to fill out 159. The form is only needed by about one-third of SBA loan applicants, but you can be part of that third party. If so, it`s always easy – no matter what, there`s nothing to worry about. If you make sure that all of this information – your agent`s name and business information, fee amounts, especially your SBA loan number – is correct, make sure you only need to fill out Form 159 once, and the rest of the process goes more smoothly. Your agent will fill out this section – but as I said, you should check the information they provide before filling out the form.
They will indicate the type of agent they are and the services they have provided to you (credit packing, etc.), as well as the total amount of compensation they have charged you. When you apply for an SBA loan, you will come across form SBA 159, also known interchangeably as “SBA 159”. This form is only three pages long and is essentially a compilation of signatures and contact information. But it`s still dense. The important part of Form 159 is to disclose all fees paid to a third-party agent “for all matters related to the support of the SBA”. You want to make sure you`re doing it right. However, if you`re tackling it yourself, it`s important to make sure you have all the forms you need and that they`re all filled out correctly. We will review the SBA 159 form specifically so that you can be sure that you will receive this specific part of your SBA loan application. (And tip: once you`re done here, we can also help you with the SBA 912 form – but one thing at a time!) Here`s everything you need.
Just like we said, it is important to check all the information provided on this form, the SBA wants to make sure that you have looked at it before submitting it. In the Applicant Certifications section, the SBA wants to ensure that “the above representations and amounts […] are satisfactory to the applicant. An agent is “any party who receives compensation from the representation of an applicant or lender in connection with an SBA loan.” The loan applicant (you, probably), your agent, and your lender all have a section to fill out on this form. As I said, the SBA reports that there are a lot of errors here, so if you let someone else fill out a section for you, be sure to check it out before submitting it. But if it`s you, it`s really not that bad! If you`ve worked with a combination of agents and non-agents to complete your SBA loan, be sure to fill out the appropriate forms for qualified agents – and remember that each agent you`ve worked with will receive their own form. The form itself is very easy to fill out; We`ll walk you through all the steps below, but as you go along, all you have to do is make sure you`re meticulous and fill in all the fields correctly. That`s the last thing! Your lender will fill out this section for you, and you now know that you should check it out for them. This section requires the name of the lender as well as the printed name and signature of the lender`s authorized representative. You will also need the name of the referral agent and full business contact information, as well as the referral fee paid. At the very end, you will need your SBA loan number if your loan has been approved.
Most of the sections on SBA 159 are quite simple. They ask you for names, contact information, and fee amounts that you hope you`ve kept an eye on. But even the simplest forms have some tricks, so we`ve broken it down for you section by section. Here you may need the detailed list mentioned above. If the total amount charged is more than $2,500, your agent will need to provide you with a detailed schedule of expenses. Then the agent prints and signs his name and provides his complete business contact information. One thing to watch out for here: if the applicant`s name on the form is your own personal name, you don`t need to fill in the authorized representative field. However, if the applicant`s name on this form is the name of your business, you will need an authorized employee of your company to sign as an authorized representative. Again, make sure the names on all forms match. There are few things you can rely on as a small business owner – but one thing that`s for sure is paperwork, especially if you`re applying for an SBA loan. Applications for these coveted business loans not only require a long list of documents from your personal financial records, but also include their own specific forms. Among them is the SBA 159 form you need to have your SBA loan approved and purchased.
In addition, the direct costs associated with creating documents related to the closing of the loan do not need to be reported in this form. .