How do business loan brokers get paid?

Most business loan brokers are paid by the lender, as a commission on the amount funded, when your deal closes. Some brokers charge the business a fee instead, or in addition. Either model can be fair. What matters is that you know who is paying, how much, and that nothing is due before you have an offer you want.

The three ways brokers are paid

Model	Who pays	When	What to look for
Lender paid commission	The lender	At funding	Ask what the lender pays; some states require it on the disclosure
Broker fee to the business	You	At funding, usually from proceeds	The fee in dollars, in writing, before you sign
Packaging or consulting fee	You	As work is done	A defined scope and price, never tied to "guaranteed approval"

Many deals involve only the first. Some involve two, such as a packaging fee plus a lender referral fee on an SBA loan.

How much brokers earn

Compensation scales with the product and its cost. NerdWallet reports broker fees from roughly 1% to 15% of the loan amount. It quotes the Responsible Business Lending Coalition's example of a 1% to 3% fee on an SBA loan against a 15% fee on a merchant cash advance with an estimated APR of 100% or more.

That spread exists because the products differ. An SBA loan is large, slow and low margin per dollar for the lender. A short term merchant cash advance is small, fast and priced higher, so the lender can pay more to the broker who brought it.

A great broker earns their commission by putting you in the right product, even when a cheaper product pays them less. You can test that by asking which products they considered and why they chose this one.

SBA loans have the clearest rules

For SBA 7(a) loans, every agent you pay must sign SBA Form 159, the Fee Disclosure and Compensation Agreement, alongside you and the lender. The SBA's SOP 50 10 8 limits, as summarized by GoSBA Loans:

Combined percentage based fees capped at 3% on loans of $50,000 or less.
Capped at 2% on loans from $50,001 to $1,000,000.
Capped at 0.25% on the portion above $1,000,000, with a $30,000 ceiling.
An agent may be paid by both you and the lender only for different services, with both sides aware.

Form 159 adds that if total compensation exceeds $2,500 it must be itemized, and that compensation cannot be contingent on loan approval. The lender also certifies that any referral fee it pays was not charged to you directly or indirectly.

State laws are making broker pay visible

Several states now require the financing provider to tell you what it pays your broker:

Virginia. The provider's disclosure must state whether it will pay compensation directly to a broker for the offer, and the amount.
Connecticut. Greenberg Traurig notes the disclosure must say whether the provider pays a broker out of the financed amount, and how much.
California. Under AB 2116, operative January 1, 2028, licensed brokers must post on their websites the average and maximum APRs of deals they arranged in the prior year, as Consumer Finance Monitor reports.

Texas, Utah, Missouri and others have their own registration or disclosure rules. The register tracks each broker's status so you can see where they stand.

Questions to ask about pay

Put these to any broker on your first call:

Who pays you on this deal: the lender, me, or both?
If I pay anything, what is it in dollars, and when is it due?
Is your fee taken from the loan proceeds or billed separately?
Do any lenders pay you more than others for the same product?
Will you show me the provider's written disclosure, including any broker compensation line?

Good brokers welcome these questions. They are proud of how they work.

Why paid at funding is the norm

Lender paid commission at funding lines up everyone's interests. The broker earns only when a lender approves and you accept an offer, so the broker's effort goes into finding a deal that actually closes and that you are willing to sign. It also means a business that does not end up borrowing usually owes nothing.

How Levr fits in

Levr is free for brokers and for businesses. It earns on the lender side, so a broker on Levr does not pay to use the platform and you do not pay to be matched. Verified entries on the register show fees in writing, so you can compare before you call.

What a fair arrangement looks like

Nothing is due before you have a written offer you choose to accept.
Any fee you pay is a fixed dollar figure on paper.
You see the lender's own offer and disclosure, not just a summary.
The broker can explain why this product, from this lender, fits your business.

If an arrangement meets those four tests, you are working with a professional. Read red flags when working with a loan broker for the patterns that do not.

Next step

Search the register by loan type and filter for verified entries, or use the match form to be introduced to brokers who fit your deal.

Questions owners ask

Do I pay a business loan broker anything?

Often not directly. Most brokers are paid by the lender at funding. If a broker charges you, get the fee in writing as a dollar amount before you sign anything.

Should a broker charge me before I have an offer?

No. A fee before any lender has made you an offer is a warning sign. Legitimate fees are tied to funding or to clearly defined preparation work.

Can I see what the lender is paying my broker?

In several states the provider must disclose it. Virginia and Connecticut require the provider to state whether it pays the broker directly and how much. Anywhere else, ask.