Commercial Loan Broker Fee Agreement Template for the United States

A Commercial Loan Fee Agreement, also called a commercial loan broker fee agreement, is a legally binding contract that governs the professional relationship between you and a loan broker when seeking commercial financing. This document sets clear terms for the broker's services, compensation structure, and obligations while addressing compliance with federal lending regulations. Getting the agreement right protects your interests and establishes transparent expectations throughout the loan procurement process.

What is a commercial loan fee agreement?

It is a written contract between a company seeking financing and the broker who arranges it. The agreement records how the broker is paid (a flat fee, a commission set as a percentage of the loan amount, or a success fee triggered when funding closes), what the broker will and will not do, and how confidential financial information is handled. For commercial mortgage deals, it also clarifies who pays the broker and when, so there are no surprises when both parties sign.

When do you need this document?

You need this agreement when engaging a loan broker or commercial mortgage broker to help secure commercial financing for your business ventures. This includes seeking working capital loans, equipment financing, real estate acquisition loans, a commercial mortgage on property, or business expansion funding. The agreement becomes essential when you want to formalize the broker's role, set a clear fee structure, and define service expectations. It matters most for larger loan amounts, where a commission on a $500,000 facility can run into tens of thousands of dollars, or for complex arrangements involving multiple lenders or specialized loan products.

How does a commercial mortgage broker fee agreement differ?

A commercial mortgage broker fee agreement is a specific type of this contract used when the financing is secured against property. The core terms are the same, but it typically references the commercial property, the anticipated commercial mortgage amount, and any disclosure rules that apply when real estate collateral is involved. If your deal is property-backed, use the mortgage-specific version so the fee terms line up with the loan closing.

What should the fee and payment terms cover?

Set out the amount, the calculation method, and the exact payment triggers. Good agreements answer three questions in writing:

• How is the fee or commission calculated (flat, percentage, or tiered)?
• When is payment due (on funding, on approval, or in stages)?
• What happens to the fee if the deal falls through or either party terminates early?

Here is a worked example. A broker charges a 2% commission on a $1,000,000 commercial property loan, payable only on funding. If the loan closes, the fee is $20,000; if it never funds, no fee is owed. Spelling this out avoids disputes over whether a broker earned a fee when a loan does not close.

Key legal considerations

Several elements should be addressed carefully. The fee structure should meet Truth in Lending Act disclosure standards, so all costs are clearly stated and correctly calculated. Service scope definitions protect both parties by fixing specific broker obligations and performance standards. Termination clauses should cover when either party can end the relationship and how fees are handled on early exit. Confidentiality and privacy provisions protect sensitive financial information shared during the application, in line with the broker's data-handling policy. The agreement should also include representations and warranties confirming the broker holds proper licensing and operates within legal boundaries. For a plain-language definition of how this fits a wider business context, see commercial business.

Legal requirements in the United States

Under U.S. law, commercial loan broker agreements must meet several federal rules affecting lending. The Truth in Lending Act requires clear disclosure of all fees tied to loan procurement services. RESPA applies when the commercial loan involves real estate collateral, governing disclosures and prohibited referral fees. The Equal Credit Opportunity Act bars discriminatory practices, and the Fair Credit Reporting Act sets procedures for handling credit information when checks are performed. State licensing rules vary by jurisdiction, and your agreement should confirm the broker maintains the licenses needed to operate in your state. Because these rules change over time, review the terms against current guidance before you sign.

How do I complete and sign this agreement?

Fill in the party details, the loan amount or facility being sought, the fee and commission terms, and the service scope. Have both the company and the broker review the draft, then sign and keep a copy on file for your records. GenieAI can draft, review, and flag risk in the terms against your own playbook before you sign, and you can compare plans on the pricing page.