bridge loan


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Bridge Loan

A loan for a short-term period, usually two weeks to three years, until long-term financing can be arranged or an obligation is removed. Interest rates are relatively high, often 12-15%. Bridge loans are used to satisfy working capital needs; for example, if a company is arranging for an IPO or a bond issue in the coming months, but needs capital before then, it may take out a bridge loan. In doing so, it will plan to pay back the bridge loan with the money raised in the longer-term financing.

bridge loan

A short-term loan that is taken out until permanent financing can be arranged. Also called swing loan.

bridge loan

A short-term loan intended to bridge the gap between other transactions. (1) Temporary financing obtained at the end of a construction loan period but before permanent financing can be arranged. (2) A loan obtained by a home buyer when the equity from an existing home is necessary to provide the down payment for a new home,but the buyer has been unable to sell his or her old home as of that time (frequently offered by employers who transfer employees to new cities).

Bridge Loan

A short-term loan,usually from a bank,that “bridges”the period between the closing of a home purchase and the closing of a home sale.

To qualify for a bridge loan, the borrower must have a contract to sell the existing house. This is the same as a “swing loan.” See Housing Investment/Buying the Next Home Before the Existing One
Is Sold.

References in periodicals archive ?
5 million bridge loan collateralized by a two-story industrial property located on Eckford Street in the Greenpoint neighborhood of Brooklyn.
35bn bridge loan, the statement added, and be used to fund the company's commercial development project in Makkah.
The banks joined a USD5bn bridge loan to support the USD15.
Although some banks are in the bridge financing business, bridge loans are more often provided by early investors to help a company manage until the next round of investment.
State Treasurer Phil Angelides, a potential future gubernatorial candidate himself, put out a terse statement Tuesday blaming the PUC for the bridge loan reverting to a higher-interest, three-year obligation, although offering the silver lining that the state technically will not be found in default on the old, interim loan, so the state's credit rating, which has been lowered because of the electricity financing woes in recent months, may escape further decline.
Some of the most common types of debt financing available to the entrepreneur include demand loans, lines of credit, bridge loans, conditional sales purchases and floor financing.
Greystone's bridge loan program enables healthcare and multifamily properties to quickly and readily obtain short-term financing, up to $30 million or more, during acquisition, stabilization, rehabilitation and repositioning initiatives.
Trevian Capital funded a $3,700,000 first-mortgage bridge loan secured by a 100% occupied 40,000 square foot suburban office building with recently extended long-term leases in place.
Small businesses located in counties originally approved for the emergency bridge loan program may apply through Sept.
4 million bridge loan used for the construction of a luxury rental building located on St.
Trevian Capital funded a $22,000,000 first-mortgage bridge loan secured by a 17,247 square foot, 5-story loft building in the Tribeca neighborhood of Manhattan.
Capmark") announced that in connection with its previously reported discussions with the lenders under its senior credit facility and bridge loan agreement regarding possible modifications of those agreements, Capmark has agreed with certain of the lenders under its $833 million bridge loan agreement to extend the March 23, 2009 maturity date of more than 90% of the aggregate principal amount of the bridge loan until March 24, 2009.