ICBA called on the Treasury Department and SBA to clarify rules on Paycheck Protection Program fees paid to agents that assist borrowers or lenders. In a letter to SBA and Treasury, ICBA said rules and guidance dictate that agents are to be paid from lender fees, though how the agency relationship is to be formed remains unclear.
Common law requires contractual relationships to form agency relationships, as suggested by Treasury Secretary Steven Mnuchin in congressional testimony. ICBA asked Treasury and SBA to confirm that this is the case for PPP agency arrangements for agents to be entitled to compensation for their services.
ICBA noted that the lack of clarity has led third parties to demand fees from PPP lenders—including via a growing number of lawsuits—simply because they communicated with the borrower in some manner.