What is an approved facilitator or agent for SBA/PPP loans?

In this 3-minute read:

  • Who can be an approved agent for SBA loans under the CARES act?
  • Do I have to use a loan agent?
  • Why should I consider using an approved loan facilitator?
  • Do I have to pay to apply for SBA PPP loans or EIDL grants?

IMPORTANT UPDATE FOR 2021: Congress has approved an extension of the PPP loan program until March 31, 2021, including “second draw” PPP loans for businesses that received PPP funding in 2020. Please click for more details about PPP loans.

With the COVID-19 crisis continuing into 2021, there is lots of confusion for small businesses scrambling to get access to SBA, PPP, and/or EIDL grants and loans to help them weather this financial superstorm.

As you are starting the process of applying for your loans under the Paycheck Protection Program (PPP) or other SBA emergency funding, you may have heard the term “loan agent” or “verified agent” thrown around in regards to someone who can help you get your applications submitted. 

Multiple organizations and individuals are acting as agents or loan facilitators to help small businesses and individuals apply for SBA EIDL grants and/or PPP loans. 

Organizations designated as agents are not necessarily lenders for PPP loans, but they have strong relationships with SBA 7(a) approved lenders and work with both borrowers and lenders to get your loans submitted and funded as efficiently as possible. 

Get your PPP loan or second draw PPP loan through Womply! Womply has helped over 200,000 businesses get their PPP funding. It’s free to apply for a PPP loan, and Womply can help connect you with an SBA lender that’s right for you! Start your PPP application.

Who can act as an approved agent for SBA and PPP loans?

A loan agent is an authorized representative for your business and can be any of the following:

  • An attorney
  • An accountant
  • A consultant
  • Someone who is engaged by the applicant and helps them with their application 
  • Someone who assists lenders with originating, servicing, disbursing, liquidating, or litigating SBA loans
  • A loan broker
  • Another individual or organization who represents an applicant by conducting business with the SBA

This representative is someone you authorize to help you navigate the process of applying for and receiving your Paycheck Protection Program loan or other SBA grants or funding. 

Why should I consider using an approved loan agent or facilitator for my SBA/PPP loan?

Due to the widespread need of emergency funding in this crisis, some banks are simply unable to accept all the applications necessary or submit them in a timely fashion. And some SBA-approved lenders have elected not to accept applications at all. 

If you find you can’t or don’t want to work directly with your bank in submitting your applications, a registered loan agent with a formal relationship with SBA 7(a) approved lenders can be helpful in getting your SBA/EIDL/PPP loan application submitted and processed easier and more quickly than if you try to do it on your own.


female SBA PPP loan facilitator agent for small business

Do I have to work with an approved agent to get my SBA/PPP stimulus loan submitted?

You do not need to work through an agent to get your emergency stimulus loan application submitted. You can work directly with a trusted, SBA 7(a)-approved lender that is accepting applications and submit the application yourself. 

Learn more about the application process and find PPP FAQs here.

Do I have to pay a loan agent or facilitator to help me? Is there any fee to apply for SBA loans or grants?

Unless your approved agent is one of your employees who is already on your payroll, you will not have to pay your agent—nor should any SBA/PPP loan facilitator or agent request any sort of compensation or fee from you.

Let us reiterate: there should be no fees paid by a business owner to file or access a PPP or other SBA loan. No closing costs. No origination costs. No application costs. No processing costs. Neither lenders nor agents are permitted to charge borrowers.

By law, applying for these SBA funds is free to the applicant. So what’s in it for the loan agents or facilitators? They receive their compensation from the approved lenders, who pay a small fee to the agents that bring applicants to them. Any origination fees are paid by the government.

What should I look for in an SBA/PPP loan agent or facilitator?

Here are some things to consider and questions you might ask any organization you’re considering to help you get your PPP or other SBA funding application submitted.

  1. Do they provide assistance during the application process based on treasury guidelines?
    The federal government’s guidance and instructions can often be difficult for small business owners to navigate. Make sure you choose a loan agent or facilitator who can clarify the process and answer and questions you might have.
  2. Do they have adequate staff to support your needs and answer your questions?
    With millions of businesses scrambling to apply for these emergency stimulus funds, it may be difficult to find an organization who can give you absolutely all the attention you deserve. However, you should choose a loan facilitator or agent whom you feel provides you with quality support and accurate information when you need it.
  3. Do they charge for their service of helping submit your SBA/PPP application?
    As noted above, no one should be charging you for applying for an SBA loan or grant. “Commissions” or fees will be paid by the lender, not by the borrower. There is no fee, commission, or other payment needed when applying for these SBA/PPP/EIDL loans. If your lender, loan facilitator, or loan agent is charging you a fee, they are not acting in good faith and you should find a more reputable organization to deal with.

Let Womply help you apply for your PPP loans!

As you know, it’s free to apply for a PPP loan, and we know you have lots of choices. So why should you let Womply connect you with an approved SBA lender? Because we know what we’re doing and people love the help we provide. We’ve helped over 200,000 businesses, contractors, sole proprietors, and self-employed individuals get approved. Don’t wait! The deadline is March 31, 2021.

Start your PPP application now!

Learn more, plus get free reputation monitoring and customer insights when you sign up for Womply Free!


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