(1) What is a Certifed Development Company?

A Certified Development Company (CDC) finances business expansion through the purchase or development of a building and/or major equipment via the SBA 504 loan program. CDCs are certified by the SBA to offer the SBA 504 Loan Program.

(2)What is the Premier Certified Lenders Program?

The Premier Certified Lenders Program (PCLP) provides greater delegated authority to CDCs accepted into the program by the Small Business Administration (SBA). This additional authority allows CDCs to provide the benefits of the SBA 504 loan program with greater efficiency by being able to approve, close and service its own loans. Additionally, PCLP CDCs are required by law to maintain a Loan Loss Reserve Fund (LLRF) to cover 10% – 15% of a PCLP loan which goes into foreclosure. LLRF regulations have been implemented to ensure the responsible lending practices of PCLP CDCs.

(3) What are the benefits of becoming a PCLP CDC?

By being approved by the SBA to become a PCLP CDC, a CDC is able to provide the SBA 504 loan program with more efficiency. This program allows PCLP CDCs to offer timely, efficient and responsible lending to small businesses via the SBA 504 loan program. By being able to process and service loans in-house, a CDC reduces the cost and workload for the SBA and has the ability to supply the borrower with the benefits of the SBA 504 loan program with less time restraints. Due to the additional authority and timeliness of the PCL Program it is beneficial to the CDC, borrower and the SBA.

(4) What are the benefits of joining the National Association of Premier Lenders?

The National Association of Premier Lenders (NAPL) is a strong advocate of small businesses and the SBA 504 loan program. It is the vision of NAPL to move forward to allow CDCs to be able to provide SBA 504 loans to small businesses with the greatest efficiency, by accomplishing our specific legislative and administrative agenda. By joining NAPL your CDC will be directly involved in open discussion of the major issues and will have the opportunity to assist in our efforts to influence the 504 loan industry.

(5) Who is eligible to join NAPL?

NAPL has two classes of membership:
1) Active Membership is available to any CDC. Please note, NAPL membership is held by the CDC, not the individual.
2) Affiliate Membership is available to any company or individual supporting the SBA 504 loan program. Affiliate members will not have the right to vote or to hold office, with the exception of the affiliate position on the Board of Directors. The Affiliate Board Member holds full voting rights; however, NAPL Bylaws limit the position from the capability of serving as an officer on the Board of Directors.

Please send any further questions or inquiries to info@napl504.org