Gap Loan

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Gap Loan

Financing that is needed but unavailable. A common solution to filling a gap is borrowing. See also: Bridge loan.
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BANKING AND CREDIT NEWS-July 14, 2015-Banks in Illinois offers payroll gap loans to state employees
The Illinois Bankers Association said banks throughout Illinois are offering short-term payroll gap loans at minimal or no cost to their state employee customers in order to provide assistance during the current state budget impasse.
M2 EQUITYBITES-July 14, 2015-Banks in Illinois offers payroll gap loans to state employees
Insurance companies, during their Hollywood period (roughly the early '90s), offered to insure gap loans on films.
Gap loans were originally used to cover (or "bridge") the difference between a construction loan and a permanent loan.
The support for homewners package will include independent financial advice, Homeswap, shared ownership and equity gap loans.
Two, three, four years ago, there was lots of competition in the size of gap loans banks would do--40%-50% and more of the budget.
Those that do--notably LHO, Comerica, Dexia-BIL, Natexis, Royal Bank of Scotland and DZ Bank-London--require producers to first tally up at least 80% of production budgets, with remaining unsold territories worth 200% of the gap loans.
These solutions may have one or many components, such as gap loans between past and current income, short-term hardship loans, consolidation loans, interest-only payments on existing loans, deferring payments, waiving fees, etc.
But they lack the experience of going through the problems with gap loans.
Horwitz made 23 gap loans through the end of May, compared with 31 for all of 1996 and 29 for the previous year.
Banks and others making gap loans have played a crucial role in the growth of independent companies represented by the American Film Marketing Assn.