Banker Referral FAQ

The Bank Bribery Act (18 U.S.C. § 215) is targeted at corrupt intent — payments made to influence a banking decision in violation of the bank's duty. It does not prohibit bank employees from receiving legitimate referral compensation for connecting clients with non-bank lenders. However, your institution's internal policy is likely more restrictive than the statute. Most banks require at minimum internal disclosure; some require prior compliance approval. Start with your compliance officer or HR.

Yes, in most institutions. Bank employees are typically required to disclose outside compensation arrangements, including referral fees. This is independent of whether the activity is permitted — most institutions permit it upon review. File the disclosure with HR or compliance before beginning any referrals. The process typically takes 1–2 weeks.

Referring declined applicants to legitimate alternative lenders is generally viewed positively in CRA examinations under the "community development service" component. It demonstrates that the institution is helping community businesses access capital even when they can't serve the client directly. Document these referrals through your CRA officer. This does not substitute for CRA lending activity but is a supplementary positive factor.

In a properly structured referral, no. You are facilitating an introduction — not acting as an agent, co-lender, or underwriter. The funding agreement is exclusively between the client and T.A.G. Your bank has no contractual relationship with the outcome. Ensure your referrals include clear disclosure language that makes this distinction evident to the client.

Yes. Some institutions prefer that referral fees flow to a department budget or charitable fund rather than to the individual employee. T.A.G. can structure fees to a business entity, department account, or individual as your compliance arrangement requires. Contact us to discuss the structure before registering.

Referral fees range from 2–5% of the funded advance amount (per your partner agreement). Examples:

• $50,000 advance at 3% = $1,500
• $100,000 advance at 3% = $3,000
• $200,000 advance at 4% = $8,000

Fees are paid within 5 business days of funding via ACH or check. A 1099-NEC is issued annually for fees exceeding $600.

Your client will:

1. Complete a 10–15 minute online application
2. Upload 3 months of bank statements
3. Receive an underwriting decision within 24–48 hours
4. Review the term sheet — no obligation to accept
5. Receive funding within 24–48 hours of acceptance

T.A.G. does not solicit your client for other bank relationships or share their information with your institution.

No. T.A.G. is a funding specialist, not a bank. We do not offer deposit accounts, checking accounts, savings products, or any banking services. Your deposit relationship with the client is unchanged. In fact, many successfully funded clients deepen their banking relationship after accessing capital to grow — and your institution is already positioned as the partner who helped them.

T.A.G. handles all disputes, modifications, and service issues directly with the client. You are not a party to the transaction and have no responsibility for its performance. If a client contacts you about an issue with the advance, direct them to T.A.G.'s client services team. Protecting your client from bad outcomes starts with the Client Qualification Checklist — don't refer clients who are poor candidates.