Fees Due to PPP Lenders and Agents
The Department of Treasury’s PPP Information Sheet details the amounts that PPP lenders will receive from the government as processing fees. The Treasury’s guidance provides that the SBA will pay the following processing fees for PPP loans:
- A .5% fee on loans below $350,000.00
- A .3% fee on loans between $350,001.00 and $2,000,000.00
- A 1% fee on loans between $2,000,001.00 and higher
This guidance also indicates that “agents”—which are defined as accountants, attorneys, consultants, and others who assist and prepare an applicant’s application for financial relief under the PPP—are to receive a portion of these fees. Those fees are as follows:
- 1% fee on loans below $350,000.00
- .5% fee on loans between $350,001.00 and $2,000,000.00
- .25% fee on loans between $2,000,001.00 and higher
Critically, the Department of Treasury’s guidance states that the PPP agents’ “fees will be paid out of the lender fees. The lender will pay the agent. Agents may not collect any fees from the applicant.” As a result, both PPP lenders and agents must look to funds provided by the SBA as compensation for their services.
Unlike the plaintiffs in the Elite case, PPP agents have guidance from the federal government indicating that they shall be paid and that those payments shall come out of the lender’s fees…. Click here for the article.