By Joshua Burd
The National Private Lenders Association has released an industry-first glossary aimed at standardizing terms and definitions across the rapidly changing industry.
The organization said the offering, which is available at www.nplaonline.com, is geared toward newcomers to private lending such as legislators, developers and the general public, accounting for the significant transformation of the sector over the past decade. It’s also meant to bridge 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.
“The private lending industry’s growth and evolution underscore the pressing need for standardized terminology,” said Jeff Tennyson, CEO and president of Lima One Capital and NPLA chairman. “This glossary will ensure clarity in communication and mutual understanding among stakeholders, from legislators to the public.”
Tennyson added that the glossary is a key step forward for an industry that’s moving from a niche sector to a more institutionalized landscape. The project stems from the collective effort from leading private lending figures such as Jonathan Hornik of Private Lender Law, Tennyson, Eric Abramovich of Roc Capital, John Beacham of Toorak Capital Partners, Stephan Leccese of Sharestates, Jeffrey Tesch of RCN Capital and Chip Cummings of Lima One Capital.
“Legislators and regulators play an indispensable role in shaping the private lending industry,” said Hornik, NPLA’s executive director and general counsel. “A standardized glossary allows us to communicate more effectively, fostering a more beneficial legislative and regulatory landscape.”
The NPLA added that, prior to 2015, the industry was mainly characterized by an array of individual lenders and family offices, which provided funds in areas in which conventional lenders typically hesitated to engage. That changed as Wall Street and institutional capital started to recognize private lending as an attractive alternative asset class, igniting a transformative wave across the industry.
The association said it anticipates revising the glossary and adding new terms as the industry evolves.
“We see the NPLA’s role as providing a common language to enhance our growing industry’s national standardization,” Tennyson said. “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.”
