SBA Form 159: How to receive agent compensation for your firm’s PPP loan assistance

Overdue tax returns, unread emails and a growing call-back list.  All things that you and I are accustomed to dealing with during our tax season, but not now – not half a month after the April 15th tax deadline! 

COVID-19 and the economic shut-down has truly reshaped what our “post-tax season” is going to look like and the worst part is that we still have yet to see what the “aftermath” looks like –  because it’s not here yet. But one thing is for sure – our clients need us now more than ever.  I hope you rose to the call and took the lead on assisting those clients (both business and personal).  Especially the small business owners who needed your guidance with regards to the Paycheck Protection Program (PPP) loan.

I’m writing this blog to you as I sit here at 3 am on Tuesday morning, April 29th.  I needed to take a break and I wanted to share something that I feel is very valuable to you and your clients. It’s something that could help your firm get through these unprecedented and stressful times and if you do it right, it really shouldn’t require much of your valuable time!

So what’s the big secret?

Last week I learned about the SBA’s Form 159, a Fee Disclosure and Compensation Agreement. If you or your firm assisted a small business client with their PPP loan application, consulted with them through the process (like we did), or simply brokered the deal, then you’ve been given an amazing money-making opportunity (that the banks don’t want you to know about and are currently fighting us on). 

As accountants, we are considered agents for SBA certified lenders. Why does this matter? While we cannot collect any fees for assisting our clients with applications, we can collect agent compensation. Here are the details:

https://home.treasury.gov/system/files/136/PPP%20Lender%20Information%20Fact%20Sheet.pdf

How will agents be compensated? This agent fee will be paid out of the lender fees so the lender pays the agent (not our clients!). Like insurance brokers, the bank gets a fee from the SBA as the lender so when there’s an agent (like us) on the application, then our fee comes out of what the bank would otherwise get.  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:

• One (1) percent for loans of not more than $350,000;
• 0.50 percent for loans of more than $350,000 and less than $2 million; and
• 0.25 percent for loans of at least $2 million. 

Who can be an agent? An agent is an authorized representative and can be:

• An attorney;
• An accountant;
• A consultant;
• Someone who prepares an applicant’s application for financial assistance and is employed and compensated by the applicant;
• Someone who assists a lender with originating, disbursing, servicing, liquidating, or litigating SBA loans;
• A loan broker; or
• Any other individual or entity representing an applicant by conducting business with the SBA.

Other important information you should be aware of:

• Agents can NOT collect any fees from the applicant (in other words, no charging them for your time on this);
• You and your clients will both have to the SBA Form 159 and then submit this with their PPP loan documentation (if possible);
• This does NOT get paid by your clients in any way (which is why 100% of them should be on board with signing this for you);
• Your client will have to check the box “We have used an agent to provide the information to the bank” when finalizing their loan disclosure documents;
• If your client has already received their money, it’s best to have them send the signed SBA 159 form to their banker as soon as possible (for them to re-work the paperwork);
• The timing of payment for this agent fee has yet to be completely clarified, but it’s my expectation that it’ll get paid to you once the borrower applies for loan forgiveness.

This is an amazing opportunity for us to receive the compensation we are due for assisting our clients in the application process! HOWEVER, there has been a nation-wide struggle to get many of the lenders to recognize and acknowledge this agent compensation fee arrangement.  The AICPA recognizes this issue and has actually created a nation-wide coalition to work with the SBA to represent and stand up for us against these lenders.  They’ve even partnered with some of the top industry players in the accounting industry!

At the end of the day, I need you to ask yourself two things.  Wouldn’t you rather get paid by the banks for assisting your small business clients versus making your struggling small business client take on the process themselves (heck, you probably will get more from the agent fee anyways!)? And, if you are, how ready are you to advocate for yourself (and your client) to ultimately gain the financial recognition you deserve from these money-hungry lenders? 

This movement starts with you and I. It starts with us getting our clients to sign this SBA form 159 and submitting it to the banks on the client’s behalf.  It then requires us to band together which is why we need to stay connected. 

I am personally working with a local coalition of CPAs in Upstate New York to represent those who don’t have a voice and, like the AICPA, we will continue to work with the SBA to ensure that we, as agent’s and advocates for our small business community, get recognized for our assistance.  Be sure to follow me on Twitter (@patroberts148) or on LinkedIn at to stay connected and keep up to date on how we are progressing!