13 CFR § 123.705 - Are there any fees associated with IDAP loans?
---
identifier: "/us/cfr/t13/s123.705"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "13 CFR § 123.705 - Are there any fees associated with IDAP loans?"
title_number: 13
title_name: "Business Credit and Assistance"
section_number: "123.705"
section_name: "Are there any fees associated with IDAP loans?"
chapter_name: "SMALL BUSINESS ADMINISTRATION"
part_number: "123"
part_name: "DISASTER LOAN PROGRAM"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "15 U.S.C. 632, 634(b)(6), 636(b), 636(d), 657n, 9009, and U.S. Const. art. VI, cl. 10."
regulatory_source: "61 FR 3304, Jan. 31, 1996, unless otherwise noted."
cfr_part: "123"
---
# 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, no compensation agreement is required for the application fee. If an undisbursed IDAP loan is cancelled pursuant to § 123.703(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.