Updated SBA Form 159 and Instructions Regarding Submission Issued Nov 12
Monday, November 15, 2021
by John Vitale, MBA Commercial Relationship Manager Midland States Bank
SBA Procedural Notice 5000-821479, Issuance of Updated SBA Form 159 and Revised Procedures in SOP 50 10 6 for Submission of the Form (effective November 12, 2021), announces issuance of the revised SBA Form 159, Fee Disclosure and Compensation Agreement, and details the changes to the form. It also revises the procedures governing submission of the completed form to SBA by lenders. [SOP 50 10 6, Part 2, Section A, Chapter 5, Paragraph D.8.e. (p. 191) – for 7(a) Lenders – and Paragraph E.7.c.iv. (p. 201) for CDCs.] Lenders must begin using the new form immediately for new loan applications, but may continue to approve the previously approved version for applications already in process.
Per the notice, the substantive revisions to the 159 form include:
- Clarification that a separate Form 159 must be completed for each application when an Agent provides services to an Applicant in connection with multiple applications, and explanation of the new procedure for submitting completed forms and supporting documentation;
- Revisions to guidance regarding the itemization of services provided and the requirements for supporting documentation;
- Deletion of references to FTA/Colson Service mailbox since that email account is no longer active; and,
- New requirement that the lender use its 6-7 digit Location ID instead of its FIRS number to identify itself.
Effective immediately, the lender must submit all required executed SBA Forms 159, together with any required supporting documentation electronically to SBA’s Capital Access Financial System (CAFS) at https://caweb.sba.gov. After initial disbursement of the loan, the required form(s) and documentation must be uploaded into E-Tran Servicing in conjunction with the Lender’s monthly SBA Form 1502 report with submission required within two 1502 reporting cycles. There is no change to the requirement that 7(a) Lenders retain original signature versions of all 159 forms and all supporting documentation in their files for compliance review purposes. [Similar procedural changes are provided for forms and supporting documentation required in connection with 504 loans.] Please see the revised Form 159 and notice for full details.