APPLY NOW! (757) 623-2691
Accredited Lenders 101 - What They Are and Why to Choose One
Accredited Lenders 101 – What They Are and Why to Choose One
Accredited Lenders 101—What They Are and Why to Choose One

Accredited Lenders 101 – What They Are and Why to Choose One

In the world of Small Business Administration loans, the Accredited Lender Program is held in high regard. Accredited lenders are considered knowledgeable and capable in the field of 504 loans and provide borrowers with a range of benefits that can help them grow their businesses. As an SBA ALP company in Virginia, North Carolina, and Maryland, 504 Capital is proud to be a part of this highly-esteemed group of lenders. We hope that this article will help you to understand the significance of the designation and provide you with the knowledge to make an informed decision on your lending company.

What is an Accredited Lender?

Within the codes of the Small Business Administration (SBA), Certified Development Corporations (CDCs) are eligible to apply for the Accredited Lender Program (ALP). The ALP is a certification that the CDC meets a set of standards that make it highly qualified to process, close, and service 504 loans.

What Makes ALP CDCs Different?

To qualify as an ALP CDC, a current CDC must meet a specific set of requirements. Because of this, the ALP designation that a CDC has set a high standard for processing and servicing 504 loans. These standards include staff experience, number of loans/size of the portfolio, reviews, and a record of compliance with 504 program requirements.

Staff Experience

One of the main differences between a CDC and an ALP CDC is the staff’s experience. ALP CDCs must have one individual with at least three years of 504 processing experience and another with at least three years of 504 servicing experience. This level of experience and expertise ensures that borrowers are serviced at the highest level of understanding. 

Loan Number/Portfolio

In addition to staff experience, the ALP designation requires the CDC to have at least 30 active 504 loans. Similarly, the CDC must have at least 20 504 loans approved by the SBA within the last three years. These requirements ensure that the CDC actively participates in the small business community and continues to meet the standards set forth by the SBA. 

Reviews

The SBA performs reviews on all CDCs. An ALP CDC must have had a review within the past two years to qualify for the ALP designation. With this requirement, borrowers are assured that the CDC they work with is adequately prepared to take them on as a client. 

Record of Compliance

Finally, an ALP CDC has to have a record of compliance with the SBA 504 program regulations. This compliance measures whether or not a CDC has adequately performed its duties of underwriting, closing, and servicing 504 loans. Again, this benefits the loaner and allows them to feel that their loan is in good hands. 

Why Choose an Accredited Lender?

The accredited lender program is meant to help borrowers find a reputable 504 lender in their region. With this accreditation, CDCs can process and close loans in a timely manner. This timeliness can be incredibly beneficial for lenders looking for a quick turnaround on real estate purchases, equipment purchases, etc. 

504 Capital—An SBA ALP Company in Virginia, North Carolina, and Maryland

ALP CDC lenders are few and far between. 504 Capital is an SBA CDC in North Carolina, Virginia, and Maryland. We have gone through the rigorous requirements of the ALP process and have been deemed a highly-capable team. Our expertise and dedication to our clients allow us to provide them with timely, professional, and knowledgeable assistance in all aspects of their 504 loan. 

Are you a small business owner looking to purchase real estate, machinery, or refinance debt? An SBA 504 loan in Virginia, North Carolina, or Maryland may be the answer you’ve been searching for. Call our office at 757-623-2691, or go online to speak with a loan specialist today.

Apply Now