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 ?
P/F Atlantic Petroleum (CPH:ATLA DKK) (Oslo:ATLA NOK) announced on Tuesday the signing of an unsecured bridge loan facility for up to DKK5m with one of its shareholders, which provides the company with additional working capital until payments from the Orlando Fiels are received.
QuickLiquidity, a private equity firm investing in commercial real estate debt and equity, has announced that it has closed a USD 600,000 senior mortgage bridge loan in Kansas City, KS, the company said.
The Florida Department of Economic Opportunity (DEO) administers the Florida Small Business Emergency Bridge Loan Program with the Florida Small Business Development Center Network and Florida First Capital Finance Corporation to provide cash flow to businesses damaged by a disaster.
* A $500,000 bridge loan secured by a first mortgage on a 12,000 s/f commercial building located on South State Street in Hackensack, NJ.
Greystone said the two-year bridge loan from Greystone, at 83.5% loan-to-purchase, provides time for Carabetta to rehabilitate and stabilise the property while concurrently securing a low, fixed-rate, permanent loan from HUD with Greystone.
Commenting on suggestions that the banks contracted by BEH for the bridge loan had been selected through an opaque procedure, she explained that the Public Procurement Act did not apply to the state-owned holding.
The Community Foundation for Greater Atlanta, through its Nonprofit Bridge Loan Fund, has expanded its offerings to include more educational services, according to Erin Dreiling, marketing and communications manager for TCFGA.
The proposal, seen by Reuters, says the bridge loan would have a maximum maturity of 3 months and would be repaid to the EFSM from money that Greece is to get from the euro zone bailout fund, the European Stability Mechanism (ESM) on the conclusion of negotiations on the next, 86 billion euro three-year bailout.
Healthcare company InoLife Technologies (Other OTC:INOL) reported on Monday that it has completed a USD48,000 bridge loan with Lewis Family Group Fund.
International Resource News-August 27, 2014--Wallbridge Mining receives USD1.5m bridge loan from Auramet International
Reuters reports that seven local banks, including the providers of the original bridge loan (Al Rajhi Bank, Bank Al Jazira, National Commercial Bank, SABB and Saudi Hollandi Bank), were involved in the fund-raising.
Saudi Arabia's Jabal Omar Development Co has signed a SR5bn ($1.3bn) loan agreement with a group of local banks to refinance an upcoming bridge loan maturity and fund the development of hotels and shops in Makkah.