SBA SOP 50 10 8, A.Ch4.D.1 — Use of Agents in the 7(a) Loan Program
Verbatim text of SBA SOP 50 10 8 section A.Ch4.D.1 (Use of Agents in the 7(a) Loan Program), effective 2025-06-01. 3 provision(s) quoted from the SOP PDF. SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.
SBA lending corpus: SOP 50 10 and the active notices, with the expiry watcher.
Verbatim regulatory text
Verbatim provisions from SBA SOP 50 10 8, A.Ch4.D.1 — Use of Agents in the 7(a) Loan Program — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
SOP 50 10 8 A.Ch4.D.1
1. Use of Agents in the 7(a) Loan Program SBA regulations at 13 CFR Part 103 govern the activities of Agents, the disclosure of fees, and the circumstances that would result in revocation or suspension of the Agent’s privilege to conduct business with SBA. i. SBA expects 7(a) Lenders to exercise due diligence and prudent oversight of their third party vendors, including LSPs, and other loan agents.
SOP 50 10 8 A.Ch4.D.1.ii
ii. Prudent oversight should include having written policies governing such relationships and monitoring performance of loans referred by an Agent or where an Agent provided assistance. iii. SBA will review evidence of such due diligence and oversight of such relationships when conducting lender oversight activities.
SOP 50 10 8 A.Ch4.D.1.ii.iv
iv. Federally-regulated 7(a) Lenders are reminded that they must comply with the requirements of their primary Federal Financial Institution Regulator regarding third party vendors. The Director of SBA’s Office of Credit Risk Management may, for good cause, suspend or revoke the privilege of an Agent to conduct business with the government. The suspension or revocation will remain in effect during any administrative proceedings under SBA regulations at 13 CFR Part 134. The meaning of “good cause” can be found at 13 CFR § 103.4. Agents and Privacy Act Considerations. Proprietary information is protected by the Right to Financial Privacy Act and the Privacy Act. Private information about a loan cannot be discussed with anyone who claims to be an Agent for an Applicant or 7(a) Lender without evidence of representation. SBA may require that an Agent supply written evidence of their authority to act on behalf of an Applicant or 7(a) Lender as a condition of revealing any information about the Applicant’s or 7(a) Lender’s current or prior dealings with the SBA. Employment of Agent Initiated by Applicant. 7(a) Lenders and Agents must clearly inform any Applicant that the SBA does not require the use of an Agent for packaging or referring a loan application. When an Applicant employs an Agent: i. The Agent may bill and be paid by the Applicant for providing packaging services as long as compensation is reasonable and customary for those services; the compensation complies with SBA Loan Program Requirements; and the compensation is not contingent on the loan being approved or closed. ii. The Agent who works for an Applicant as a packager may also work as a Loan Referral Agent for the Applicant and receive a referral fee from the Applicant. However, if the Agent performs multiple services for the Applicant, the total fee for all services may not exceed the stated maximums in Paragraph D.7. below. iii. The Agent may be a Loan Referral Agent for a 7(a) Lender and a Packager for an Applicant, provided both the Applicant and the 7(a) Lender are aware of both relationships, and the Agent does not receive a referral fee from the Applicant or a packaging fee from the 7(a) Lender. Employment of Agent by 7(a) Lender (not an LSP). i. When a 7(a) Lender has decided to approve a loan application and needs assistance with the preparation of the paperwork for the application to SBA, the loan closing, or preparation of the loan to sell it on the Secondary Market, the 7(a) Lender may use an Agent. ii. The compensation for these services should be reasonable and customary for the services actually provided and compensation for services associated with preparation of the application through loan closing cannot be contingent upon the loan being approved or closed by SBA. iii. The Agent must bill and be paid by the 7(a) Lender for all services and the 7(a) Lender may not pass these charges through to the Applicant or pay them with SBA-guaranteed loan proceeds under any circumstances.
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