[Yankeeman07]

Murky Waters - Keep in mind the merchant is applying for a "Loan" - Let's assume for a moment you are correct,
and you change the maximum $2500.00 fee that is allegedly allowed on the SBA Form 159D - Merchant is declined - then what?

Also IMO - there are a few land mines in the agreement.

https://disasterloan.sba.gov/ela/Documents/Fee_Disclosure_Form_and_Compensation_Agreement_(15 9D).aspx

[ryan $]

Murky Waters - Keep in mind the merchant is applying for a "Loan" - Let's assume for a moment you are correct,
and you change the maximum $2500.00 fee that is allegedly allowed on the SBA Form 159D - Merchant is declined - then what?

Also IMO - there are a few land mines in the agreement.

https://disasterloan.sba.gov/ela/Documents/Fee_Disclosure_Form_and_Compensation_Agreement_(15 9D).aspx

Whose to say the Fee I am charging is limited just to that specific program??????

I've had "Brokers" Charge massive upfront Fee's then shop the merchants file to me, and i get them an MCA (this happens alot in the asian community for some reason)

If Im charging an Upfront Service Fee - Whatever you want to call it, to Capture that Customer, then shopping their file SBA, LOC, MCA Whatever...... all I'm saying is.....IT HAS BEEN DONE.

[WestCoastFunding]

Whose to say the Fee I am charging is limited just to that specific program??????

That’s exactly right. Nothing wrong with charging to $2500 to package and refer a 7(a), 7(a) Express, Microloan, 504, conventional term and/or ABL/factoring line and make the PPP “free”.

[ryan $]

Murky Waters - Keep in mind the merchant is applying for a "Loan" - Let's assume for a moment you are correct,
and you change the maximum $2500.00 fee that is allegedly allowed on the SBA Form 159D - Merchant is declined - then what?

Also IMO - there are a few land mines in the agreement.

https://disasterloan.sba.gov/ela/Documents/Fee_Disclosure_Form_and_Compensation_Agreement_(15 9D).aspx

Also If your Agreement makes it clear your Fee is for Document Preparation and Filing and ETC ETC and is Paid upfront and has nothing to do with them being Approved or not. Its just like the example I used above with the Student Loan Deferment - Yea you can Apply yourself, and hopefully it works out, or you can pay our fee and let us handle it for you.

And if your charging more than $2,500 thats ridiculous anyway

[Kevin Henry-Seacoast]

Also If your Agreement makes it clear your Fee is for Document Preparation and Filing and ETC ETC and is Paid upfront and has nothing to do with them being Approved or not. Its just like the example I used above with the Student Loan Deferment - Yea you can Apply yourself, and hopefully it works out, or you can pay our fee and let us handle it for you.

And if your charging more than $2,500 thats ridiculous anyway

Ryan,

Investment Bankers use a similar model. There were time when I would charge a client an advisory fee for seeking alternative options for a business. There would be an upfront retainer charged and an hourly rate. For capital raises: Always an exclusive agreement, retainer, and success fees. Size of transaction and scope of work usually dictates fees.
My last engagement as an investment banker was for an advisory role that ultimately turned into a capital raise.
Advisory was $25K upfront and $300 an hour plus expenses. The capital raise was $75Mil .....combination of equity and debt. I lowered the retainer on that portion to $15K . Success fee was 2% on any debtor....senior or mezz. Equity was 2% plus equity/warrants on the back end. I still have the warrants.... Equity closed was $40Mil with a Family Office I know well. Senior and mezz was $35Mil ....bank and mezz fund. I deducted the retainers from fees at closing.