Quick answer: SBA loan referral fees are explicitly permitted under SBA rules. The lender pays the referral fee — not the borrower — and the referral source must be disclosed on the loan application. Typical referral fees run 0.5%–1.5% of the funded loan amount, or 25%–40% of the lender/broker fee. On a $500,000 SBA 7(a) loan, a 1% referral fee is $5,000. A signed referral agreement is required before submitting deals.
Last updated: May 2026
SBA Referral Compensation Guide
CPAs, financial consultants, business brokers, equipment vendors, and commercial finance brokers regularly encounter clients who are candidates for SBA financing. Many hesitate to make referrals because they are uncertain about the fee rules, liability exposure, or how to structure a compliant arrangement. This guide covers what the SBA actually permits, how fees are structured for SBA 7(a) and 504 loans versus non-SBA products, who can receive fees, and how to set up a referral program that works.
Many advisors assume that SBA fee rules are prohibitively restrictive, or that referral fees are prohibited entirely. Neither is true. The SBA explicitly allows referral fees for 7(a) loans under its Standard Operating Procedures (SOP 50 10). The rules are specific, but they are workable — and understanding them removes the confusion that causes advisors to leave referral income on the table.
Here is what SBA SOP 50 10 governs regarding referral fees:
SBA referral fees are typically expressed as either a percentage of the funded loan amount (points) or as a share of the lender's or broker's total fee on the deal. Both structures are used; the specific arrangement depends on the lender or broker program you are working with and the terms of the referral agreement.
As a percentage of funded loan amount: Typical SBA 7(a) referral fees run 0.5% to 1.5% of the funded loan. On a $500,000 SBA 7(a) loan, that is $2,500 to $7,500. On a $1,000,000 loan, it is $5,000 to $15,000. Larger loans sometimes negotiate lower percentage fees because the absolute dollar amount is still substantial.
As revenue share: Some programs structure referral fees as a percentage of the total fee the lender or broker earns on the deal. If a broker earns 3 points ($30,000) on a $1,000,000 SBA 7(a) loan and the referral agreement provides 35% revenue share, the referral fee is $10,500.
The table below shows illustrative amounts under both structures:
| Loan Amount | Referral Fee at 0.5% | Referral Fee at 1.0% | Referral Fee at 1.5% | 35% Share of 3-pt Broker Fee |
|---|---|---|---|---|
| $250,000 | $1,250 | $2,500 | $3,750 | $2,625 |
| $500,000 | $2,500 | $5,000 | $7,500 | $5,250 |
| $750,000 | $3,750 | $7,500 | $11,250 | $7,875 |
| $1,000,000 | $5,000 | $10,000 | $15,000 | $10,500 |
| $2,000,000 | $10,000 | $20,000 | $30,000 | $21,000 |
Note that SBA deals are typically larger than conventional small business loans. A $750,000 to $2,000,000 deal size is common for SBA 7(a) in business acquisitions, expansions, and real estate transactions. This size range is what makes SBA referral fees meaningful even at relatively modest percentage rates. A CPA who refers two SBA acquisition deals per year at $750,000 each and earns a 1% referral fee generates $15,000 in referral income from those two introductions alone.
Advisors frequently confuse these three categories. The SBA treats them differently, and conflating them creates compliance risk and misunderstanding about what is permissible. Here is a clear breakdown of each:
A referral fee is paid to a party who makes an introduction — connecting a qualified borrower with an SBA lender — without actively managing the application. The referral source does not prepare forms, does not assemble documentation, and does not represent the borrower in negotiations with the lender. They identify a potential borrower and refer that borrower to the lender or broker. The SBA permits referral fees; the amount is not federally capped at the referral source level; the lender pays the fee; and the referral source is disclosed on the application. This is the simplest and most straightforward way for an advisor to earn income from an SBA referral.
A packaging fee is paid to a party who assembles and prepares the SBA loan application — collecting financial statements, tax returns, business plans, owner resumes, and completing SBA forms. Packaging requires significantly more work than a simple referral. The SBA caps packaging fees under SOP 50 10 (the cap has varied by program year; always check the current SOP). Packaging fees are also paid by the lender and disclosed. A referral source who only makes introductions and does not prepare the application earns a referral fee, not a packaging fee, regardless of what the parties call it.
A broker actively manages the deal — preparing the application, shopping it to multiple lenders, negotiating terms, and shepherding it through closing. SBA brokers are sometimes called packaging agents or loan brokers. A broker may earn a packaging fee, a placement fee, or a combination. Some states require licensing for commercial loan brokering. The broker relationship involves more active involvement — and more compliance considerations — than a simple referral arrangement. If you are referring deals without managing the application process, you are functioning as a referral source, not a broker.
The practical upshot for CPAs, consultants, and equipment vendors: if you introduce a client to an SBA lender or broker and do not manage the application, you are a referral source. You are entitled to a referral fee, paid by the lender, disclosed on the application. This is the simplest, most compliant, and least liability-generating way to earn income from SBA referrals.
The SBA does not restrict which professions can receive referral fees. The rules focus on structure and disclosure, not on who the referral source is.
Any party that refers a qualified borrower to an SBA lender can receive a referral fee, provided the arrangement is disclosed, the fee is paid by the lender, and the fee structure does not create a conflict of interest that harms the borrower. Common referral sources in SBA transactions include:
There is no federal licensing requirement specifically for receiving an SBA loan referral fee when you are functioning as a referral source rather than actively brokering the loan. State licensing requirements vary — some states require commercial loan broker licenses for active deal management. Review your state requirements and consult the referral agreement for guidance on how our program handles licensing compliance.
Referral fees vary significantly by product type. SBA products have specific compliance rules; non-SBA products are governed by lender program terms. Here is how fees compare across the commercial finance product spectrum.
| Product | Typical Referral Fee Range | Who Pays | Disclosure Required? | Funding Speed |
|---|---|---|---|---|
| SBA 7(a) Loan | 0.5%–1.5% of funded amount | Lender (required) | Yes — SBA Form 1919 | 30–90 days |
| SBA 504 Loan | 0.25%–1% of funded amount | Lender / CDC | Yes | 45–90 days |
| Conventional Term Loan | 0.5%–2% of funded amount | Lender | Lender-specific | 5–30 days |
| Equipment Financing | 1%–3% of funded amount | Lender | Lender-specific | 2–7 days |
| MCA / Revenue-Based Financing | 25%–40% of lender/broker fee | Lender | Program-specific | 24–72 hours |
| AR / Invoice Financing | 0.5%–1.5% of funded amount | Lender | Program-specific | 2–5 days |
A few things to note about this comparison: SBA products sit at the lower end of referral fee percentages because the deals are larger and the absolute dollar amounts are still substantial. Non-SBA alternative products like MCA and revenue-based financing typically have higher effective referral fee percentages because the deals are smaller and the lender's margin is higher. Equipment financing often offers attractive referral fees because the collateral structure supports higher advance rates and the market is competitive.
For referral partners who handle a variety of client situations, understanding this spectrum allows you to structure referrals intelligently: SBA when the client qualifies and has time, alternatives when they don't. You earn a fee either way through a well-designed referral program. For a detailed breakdown of how brokers are compensated across products, see our page on how brokers make money referring loans.
A compliant SBA referral arrangement has three components: a written agreement, proper disclosure, and a clean separation between referring and brokering.
A written referral agreement establishes the terms of the relationship: how fees are calculated, when they are paid, what constitutes a qualifying referral, and how prospect protection works. For SBA deals, the agreement should specify that the fee is paid by the lender (not the borrower) and is contingent on loan funding. Review the agreement carefully before submitting any deals — the agreement governs your compensation and your obligations.
For CPAs and financial advisors with fiduciary responsibilities, disclosure to the client is both an ethical obligation and a practical protection. Tell your client that you will receive a referral fee if they obtain financing through the lender you are introducing. Most clients appreciate the transparency and it does not diminish the value of the referral — you are providing access to capital they need. The disclosure protects you and reinforces the trust that makes advisors effective referral sources.
If you are making introductions without managing the application, you are a referral source. That means you introduce the borrower to the lender or broker and then step back. The lender or broker handles application prep, underwriting, and closing. You do not complete SBA forms, do not negotiate terms on behalf of the borrower, and do not represent yourself as a loan broker in the transaction. If you start doing those things, you may be functioning as a broker, which has additional licensing implications in some states.
SBA Form 1919 asks borrowers to identify any referral sources or agents involved in the loan. The lender is responsible for ensuring this field is completed accurately. When you refer a deal, confirm with the lender or broker that they have noted the referral relationship on the application. This is the lender's obligation, not yours, but following up protects everyone's interests.
SBA referral fees are paid after the loan funds — not at application, not at approval, and not at commitment. SBA 7(a) funding typically takes 45 to 90 days after application. Plan accordingly. Referral agreements typically provide for payment within 30 days of loan funding. For advisors who refer multiple deals, building a pipeline of SBA referrals means deals are closing at different stages throughout the year, which creates more consistent fee income.
Despite the legitimate income opportunity, many CPAs and financial advisors are reluctant to refer SBA deals. The hesitation typically comes from one of a handful of concerns — most of which are addressable once the rules are understood clearly.
"I'm worried about liability if the loan doesn't work out for my client."
This is the most common concern, and it is based on a misconception about the referral role. A referral source introduces a borrower to a lender. The lender makes the credit decision; the borrower decides whether to accept the loan terms. If the loan ultimately puts the business in a difficult position, that is the product of the credit decision and the borrower's business operations — not the referral. The referral source is not the lender, not the underwriter, and not the advisor who recommended the specific loan terms. As long as you are not representing that a client is qualified for a specific product when they are not, or steering them into a product that harms them for your own benefit, the liability exposure from a referral is minimal. This is not legal advice — consult your own counsel on your specific practice — but the referral role is meaningfully different from the underwriting role.
"I don't want to appear to be endorsing a specific lender."
You are not endorsing a lender — you are providing access to a resource. Advisors refer clients to attorneys, real estate agents, insurance carriers, and investment advisors regularly. A financing referral is in the same category. Disclose the referral relationship to your client (as described above), make clear that the client should evaluate the terms independently, and let the lender compete on its merits. The referral is a service to the client, not a guarantee of outcome.
"I'm not sure the fee rules are compliant."
This guide addresses the specific rules. The short answer: SBA explicitly permits referral fees paid by the lender to a disclosed referral source. The arrangement is not a gray area — it is governed by SBA SOP 50 10 and has been standard practice in SBA lending for decades. If you are still uncertain, ask the lender or broker you are working with to show you their SBA referral fee policy. Any SBA lender with an active referral program has written documentation of how they handle these fees in compliance with SBA requirements.
"The SBA approval process takes too long and I don't want my client waiting months."
This is valid. SBA 7(a) deals take 45 to 90 days, and some clients cannot or will not wait that long. The solution is to have a referral program that handles both SBA and non-SBA products — so when the client needs speed, you refer to an alternative product; when the client can wait and SBA terms are meaningfully better, you refer to SBA. A program that covers both gives you a solution for every situation.
Knowing which product to recommend is as important as knowing the referral fee structure. Routing clients to the wrong product wastes time and damages the referral relationship.
SBA financing and alternative financing are not competing in the same lane — they serve different client profiles and different situations. The decision framework below gives referral partners a fast way to assess which direction makes sense for a given client.
The practical reality for many referral partners is that their client base contains a mix: some clients qualify for SBA, many don't. A referral program that handles both gives you a complete solution. Clients who qualify for SBA get referred there; clients who don't — or who need capital faster — get referred to alternative products. You earn a referral fee either way, and your clients get appropriate solutions rather than being turned away.
For clients who have already been declined — either at a bank or for SBA — see our declined business loans page for alternative paths that may still work.
Axiant Partners operates a referral program designed specifically for CPAs, financial consultants, ISOs, business brokers, equipment vendors, and other professionals who regularly encounter commercial financing needs. The program covers both SBA-eligible deals and non-SBA alternatives, which means referral partners have a solution for the full range of client situations rather than only being able to help clients who meet SBA criteria.
Here is how the program works for SBA and non-SBA referrals:
The referral agreement establishes compensation, prospect protection, and the terms of the referral relationship. For SBA deals, the agreement specifies fee structure, disclosure requirements, and payment timing. All referral partners sign the agreement before submitting deals.
For SBA referrals, submit: business name, industry, time in business, approximate annual revenue, estimated loan amount, purpose of the loan (acquisition, expansion, working capital, real estate), and any known credit or collateral considerations. The more context provided upfront, the faster the initial assessment.
We evaluate whether the deal is an SBA candidate or better suited to alternative products, identify the most appropriate product structure, and communicate initial findings to the referral partner. You are not left waiting without feedback.
We engage directly with the borrower (with the referral partner's introduction) to begin the application process. For SBA deals, this involves full documentation collection, application preparation, and lender placement. The referral partner's role at this stage is complete — you made the introduction; we handle the rest.
When the loan funds, the referral fee is paid per the referral agreement terms. For SBA deals, funding typically occurs 45 to 90 days after application. For alternative products, funding can occur within 24 to 72 hours. Payment to the referral partner is made within 30 days of funding.
For CPAs and advisors who want to learn more about structuring an ongoing referral relationship — including how to present financing referrals to clients without compromising professional obligations — see our CPA referral program page. For ISOs and commercial finance brokers who handle deal flow across multiple product types, see our ISO and broker program page.
Have an SBA or commercial finance referral?
Review the referral agreement, sign it, and submit your first deal. We handle both SBA-eligible transactions and alternative products, and we respond within one business day.
FAQ
Yes. SBA SOP 50 10 explicitly permits referral fees for 7(a) loans. The fee must be paid by the lender (not the borrower), the referral source must be disclosed on the loan application (SBA Form 1919), and the arrangement must not create a conflict of interest that harms the borrower. The fee is not federally capped at the referral source level — the SBA caps total lender packaging fees separately, which is a different category.
Typical SBA 7(a) referral fees run 0.5% to 1.5% of the funded loan amount. On a $500,000 SBA 7(a) loan, that is $2,500 to $7,500. On a $1,000,000 loan at 1%, that is $10,000. Revenue share structures (25%–40% of the broker or lender's fee) are also common. The specific amount depends on the referral agreement terms and the lender's fee structure.
A referral fee is paid to a party who makes an introduction without managing the application. A packaging fee is paid to a party who prepares and assembles the SBA application — forms, tax returns, business plan, and supporting documents. The SBA caps packaging fees; referral fees are not capped at the referral source level. If you are only making introductions, you are earning a referral fee, not a packaging fee.
Any third party that refers a qualified borrower to an SBA lender can receive a referral fee — CPAs, financial consultants, business brokers, equipment vendors, insurance agents, real estate agents, and commercial finance brokers. There is no federal license required specifically for receiving an SBA referral fee as a referral source. State licensing requirements for active loan brokering vary; review your state's requirements if you are actively managing applications rather than just making introductions.
Refer to SBA when the client has 680+ credit, two or more years in business, time to wait 30–90 days, and a loan purpose that fits SBA programs (acquisition, owner-occupied real estate, long-term working capital). Refer to alternatives when the client needs capital quickly, has been declined for SBA, has credit challenges, lacks collateral, or has less than two years in business. A referral program that covers both allows you to serve all client situations.
No federal license is required specifically to receive an SBA referral fee as a referral source. However, if you are actively brokering loans — preparing applications, negotiating terms, or representing the borrower — some states require a commercial finance broker license. For straightforward introductions where you are not managing the application, no specific federal license is required. Review your state requirements and consult the referral agreement for guidance.
Ready to refer your first SBA deal?
The referral agreement takes five minutes to review. Submit SBA-eligible deals and alternative deals through the same program — we handle the routing and respond within one business day.
