Results 1 to 20 of 20
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02-14-2022, 11:45 PM #1
- Join Date
- Dec 2021
- Posts
- 15
Looking for SBA bank that pays well for referrals
I'm a new ISO looking to make referral revenue on SBA 7a loans. Can anyone recommend a bank that pays ISOs better than 1% on SBA loan referrals? I have a 1% arrangement now... looking to make 2-3%.
Regards,
David McCarthy, CEO
McCarthy Merchant Capital LLC
cash today for tomorrow's receivables
www.mccarthymerchantcapital.com
Main: (717) MCCARTH
Direct: (917) 974-9872
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02-15-2022, 08:47 AM #2
A SBA bank will pay you 2% (up to $1M loan, and it goes down on amounts over that) on the front end and and 3/4 to 1% on the back end.
You can also have a third party fee agreement on the side (which isn't technically legal).
I would not recommend using a SBA bank and start using a non bank SBA lender.
I use the largest non bank lender in the US (capitalized at $500M) and have a direct relationship with the managing director.
(Are they just paying you a rebate? Are you charging a service fee in the submission package?)Last edited by Olderguy; 02-15-2022 at 08:53 AM.
Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
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02-15-2022, 08:52 AM #3
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,493
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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02-15-2022, 09:06 AM #4
- Join Date
- Feb 2019
- Posts
- 209
Why would you say it is "technically legal," when it is legal. It is not a gray area at all.
There are SBA guidelines on how much you can charge for packaging and there is even an SBA form that you submit in the loan closing paperwork to document the expense.
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02-15-2022, 09:21 AM #5
I think you are missing what I am trying to say...I know brokers who charge 3rd party fee agreements. They do it instead of the 2% fee you can get through the loan. I don't agree but they do it.
And you can indeed charge 2% plus get the rebate which what I was trying to get across.Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
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02-15-2022, 10:02 AM #6
- Join Date
- Feb 2019
- Posts
- 209
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02-15-2022, 11:49 AM #7
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,976
I'm not aware of any SBA Bank that pays 3% - but, there may be an exception
Do you own research - There are Banks that have niche markets that do not pay a referral fee but allow outside fees to be charged.
100 most active SBA 7(a) lenders
https://www.sba.gov/partners/lenders...sba-7a-lendersDave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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03-02-2022, 04:59 PM #8
- Join Date
- Jan 2022
- Posts
- 42
Being a direct SBA lender, I can pay more than 1% if you come direct to me. We can negotiate a better referral amount depending on volume, pricing, etc.
Come straight to the source!Dan WallaceSVPEnterprise BankNational, direct SBA lenderFast and creative financing solutions970-390-6650dwallace@enterprisebank.com
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03-03-2022, 12:53 AM #9
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03-03-2022, 10:27 AM #10
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,976
I understand you have special provisions but us mere mortals are bound by SBA Rules:
Prohibited fees
Processing fees, origination fees, application fees, points, brokerage fees, bonus points, and other fees that could be charged to an SBA loan applicant are prohibited. The only time a commitment fee may be charged is for a loan made under the Export Working Capital loan program.
https://www.sba.gov/partners/lenders...ction-header-9Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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03-03-2022, 10:44 AM #11
You are allowed a max of 2%. Lender pays 3/4 on back end.
Fee Disclosure and Compensation Agreement
For use with 7(a) and 504 Loan Programs
OMB Control No. 3245-0201
Expiration Date: 11/30/2024
SBA Form 159 (08-21) Previous Editions Obsolete Page 1 of 4
Purpose of this Form: The purpose of this Form is 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). This is a statutory requirement under 15 U.S.C. 642.
See 13 CFR Parts 103 and 120 and SBA’s Standard Operating Procedure 50 10 for the rules governing compensation of Agents or SBA Lenders in connection with an SBA loan.
Who must complete this Form: Whenever an Agent is paid by, either, the Applicant or the SBA Lender to assist them in connection with the SBA loan application, this Form must be completed and signed by: the SBA Lender, the Applicant and the Agent. For each Agent, a separate Form 159 must be completed and signed, and the SBA Lender and Applicant, both,
must, also, sign and date the Form.
Compensation must be disclosed on this Form for the following services:
1. Loan packaging services, as defined in SOP 50 10, performed by an SBA Lender or other third party (this includes services performed by an individual/entity that is a Lender Service Provider (LSP) (7(a) only) or has an SBA approved Professional Services Contract (504 only) with the SBA Lender who is acting as a loan packager or referral agent employed by the Applicant);
2. Financial statement preparation specifically for the loan application; and/or
3. Consulting, Broker, or Referral services paid by the Applicant, SBA Lender, or Third-Party LenderLast edited by Olderguy; 03-03-2022 at 11:23 AM.
Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
-
03-03-2022, 10:47 AM #12
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,493
You two should get a room......
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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03-03-2022, 11:06 AM #13
Last edited by Olderguy; 03-03-2022 at 11:43 AM.
Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
-
03-03-2022, 06:44 PM #14
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,976
Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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03-03-2022, 06:55 PM #15
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,976
You are allowed a max of 2%. Lender pays 3/4 on back end.
Show me on SBA From 159 that allows 2% Fee -
BTW - I never had any SBA Bank pay any so-called "Back-End" fee -
My Agent-Broker commission is disclosed within the closing documents which is paid to me by the bank.
I've spoken to many Banks that underwrite SBA Loans (many do not deal with brokers) but, never has a discussion
evolve around back end commissions.
I'm curious - how do you write 504 Loans?
"504 loans are available through Certified Development Companies (CDCs), SBA's community-based partners who regulate nonprofits and promote economic development within their communities. CDCs are certified and regulated by the SBA."Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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03-03-2022, 07:23 PM #16
Per ISO agreement:
Schedule A
75 basis points of the funded loan amount for reach referral under this agreement based upon the fact that BizExec supplies contact information for referred party and is the primary source of the referral.
This is paid separately from the fees allowed under the SBA 7A and 504 guidelines.Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
-
03-03-2022, 08:21 PM #17
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,976
75 BP is not 2%
SBA Fees are what lenders are allowed to charge and maintain:
https://www.sba.gov/partners/lenders...ction-header-9
Note 2: For example, the guaranty fee on a $100,000 loan with an 85% guaranty would be 2% of $85,000 or $1,700, of which the lender may retain $425.
SBA Fees do not factor into your commission - any Bank that I've spoken with - when they pay a referral fee - is always based upon the funded amount which
is part of the closing documents -
***Prohibited feesProcessing fees, origination fees, application fees, points, brokerage fees, bonus points, and other fees that could be charged to an SBA loan applicant are prohibited. The only time a commitment fee may be charged is for a loan made under the Export Working Capital loan programDave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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03-03-2022, 09:28 PM #18
slap face emoji....
Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
-
03-04-2022, 07:06 AM #19
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,493
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
-
03-04-2022, 08:06 AM #20
I like Mel Brooks...good choice.
This seems more like Stan and Ollie...
"This another nice mess you've gotten me into"
https://www.youtube.com/watch?v=dCznHilLo3MLast edited by Olderguy; 03-04-2022 at 08:52 AM.
Steve Benjamin
Professional Business Loans
522 Contessa
Irvine, CA 92620
steveprobiz@gmail.com
https://probizloans.net/
Broker, Underwriter, general business loan expert
949.228.1050
@ 24 hour funding working capital loans
@ Term loans from 3 years to 10 years at 9.5% and up
@ Equipment financing up to 7 years
@ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
@ SBA loans - 7A and 504.
@ Private money equity and debt for major investments
@ Personal Loans up to gross income from personal tax return.
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