National Private Lenders Association (NPLA) Unveils Comprehensive Private Lending Glossary

MARLBORO, N.J., July 13, 2023 /PRNewswire/ -- The National Private Lenders Association (NPLA) has released an industry-first Private Lending Glossary. This landmark offering aims to standardize terms and definitions across the rapidly evolving private lending ecosystem. Available for free at www.nplaonline.com, the glossary is the result of the collective effort from some of the industry's leading private lending figures that includes: Jonathan Hornik, Private Lender Law; Jeff Tennyson, Lima One Capital; Eric Abramovich, Roc Capital; John Beacham, Toorak Capital Partners; Stephan Leccese, Sharestates; Jeffrey Tesch, RCN Capital; and Chip Cummings, Lima One Capital.

"The private lending industry's growth and evolution underscore the pressing need for standardized terminology. This glossary will ensure clarity in communication and mutual understanding among stakeholders, from legislators to the public," said Jeff Tennyson, president and CEO of Lima One Capital and Chairman of the NPLA. He went on to describe the glossary as a critical step forward for an industry that's moving from a niche sector to a more institutionalized landscape.

The glossary's development has taken into account the significant transformation of the private lending industry over the past decade. Sparked by recognition from Wall Street and institutional capital, the industry has seen increased transparency, predictability, and integration of more conventional lending standards. This resource now provides a common language, fostering cohesion across industry firms.

For newcomers to private lending — legislators, developers, and the general public—the glossary offers a roadmap for understanding the sector's complexities. It also bridges knowledge gaps for commercial and residential real estate developers—making the industry more approachable to those who might pursue private lending as a viable alternative to traditional funding sources.

"Legislators and regulators play an indispensable role in shaping the private lending industry. A standardized glossary allows us to communicate more effectively, fostering a more beneficial legislative and regulatory landscape," said Jonathan Hornik, Esq., NPLA Executive Director and General Counsel.

Private lending has also emerged as a stable and essential financing solution for borrowers, particularly in the face of escalating interest rates and recent financial challenges that have led to stricter lending norms from regional banks. Such conditions have made securing funding an uphill battle for builders and developers.

Reflecting these financial hurdles, the National Association of Home Builders (NAHB) quarterly Survey on Acquisition, Development, and Construction (AD&C) for Q1 2023 reported a surge in AD&C financing costs from 117 builder participants, despite a calming mortgage rate scenario. Moreover, an incredible 66% of the respondents disclosed that their traditional lenders had put a squeeze on the funds they were willing to lend.

Over the past decade, the private lending sector has experienced a profound metamorphosis. Prior to 2015, this industry was mainly characterized by an array of individual lenders and family offices, providing funds in areas in which conventional lenders typically hesitated to engage. This landscape experienced a turning point in 2015, as Wall Street and institutional capital started to recognize private lending as an attractive alternative asset class, igniting a transformative wave across the industry. Today, as the industry continues to grow and evolve, the NPLA anticipates the need to revise the glossary and add new terms, ensuring it remains a living ever-changing document that reflects the industry's dynamic nature.

"We see the NPLA's role as providing a common language to enhance our growing industry's national standardization. With the glossary, we can eliminate confusion and promote synergy among all industry stakeholders, paving the way for the collective success of the private lending industry," Tennyson concluded.

You can download the glossary for free at www.nplaonline.com.

About the NPLA
The National Private Lenders Association (NPLA) is a trade organization created to represent and protect the interests of Private Lenders in America as it pertains to legislation and public policy.

The foundational pillars are industry advancement, building community through education and mentorship, and strengthening the industry's legislative voice.

Founded in 2019, the organization was designed to represent the interests of private lenders, capital providers, and service providers dealing in real estate-based transactions.

For information, visit www.nplaonline.com.

SOURCE National Private Lenders Association (NPLA)