---
kind: "section"
citation: "13 C.F.R. § 123.705"
title: "13"
number: "123.705"
heading: "Are there any fees associated with IDAP loans?"
url: "https://uscodex.org/cfr/13/123.705"
---

# §123.705. Are there any fees associated with IDAP loans?

- (a) **IDAP Lender Fees.** An IDAP Lender must not impose any fees or direct costs on an IDAP Borrower, except for the following allowed fees or direct costs:
  - (1) The reasonable direct costs of liquidation;
  - (2) A late payment fee not to exceed 5 percent of the scheduled IDAP loan payment; and
  - (3) **An application fee not to exceed $250.** Notwithstanding the provisions of [13 CFR 103.5](/cfr/13/103.5.md), no compensation agreement is required for the application fee. If an undisbursed IDAP loan is cancelled pursuant to [§ 123.703(c)](/cfr/13/123.703.md?p=c), the IDAP Lender may retain the application fee.
- (b) **SBA Fees.** SBA will not impose any guarantee fees on an IDAP Lender making an IDAP loan.
- (c) **Prohibition on paid loan packagers, referral agents or brokers.** Other than the application fee set forth in (a)(3) of this section, no IDAP Lender or third party may charge an IDAP Borrower a fee to assist in the preparation of an IDAP loan application or application materials. No third party may charge an IDAP Borrower or an IDAP Lender a referral fee or broker's fee in connection with an IDAP loan.

## Notes

### Source

Source: 75 FR 60598, Oct. 1, 2010, unless otherwise noted.

### Authority

Authority: 15 U.S.C. 632, 634(b)(6), 636(b), 636(d), 657n, 9009, and U.S. Const. art. VI, cl. 10.

### Source

Source: 61 FR 3304, Jan. 31, 1996, unless otherwise noted.