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 ?
Trevian Capital funded a $16,500,000 first-mortgage bridge loan secured by a 400,000 square foot self-storage and warehouse property in Belleville, NJ.
AGEA raised $4 million in bridge financing in 2000, but when the market went south, the terms of the bridge loan gave its providers extremely attractive terms for taking a stake in the company.
A bridge loan is used as a temporary means to carry a company during its start-up phase or until long-term funds such as grants or other loans can be secured.
The availability and accessibility of bridge loans for healthcare and multifamily properties is vital for owners, property operators and intermediaries who need interim financing as they plan for a lengthier period of time," said Germano.
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.
A $10 million bridge loan collateralized by a multifamily building on East 64th Street on Manhattan's Upper East Side.
Trevian Capital funded a $6,125,000 first-mortgage bridge loan secured by a 7-property, 269 unit multifamily portfolio in Sherman & Denison, TX.
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.
Boesky, Pembrook Capital Management invests in and originates commercial real estate debt to finance all parts of a capital structure including first mortgages, mezzanine, bridge loans, note financings, and preferred equity across the United States.
For the month of September, Greystone Servicing Corporation had one of its most impressive monthly bridge loan totals, driven by closings in California, Nevada, and North Carolina, and particularly targeted in the area of skilled nursing facilities.
We've created a unique niche in the entertainment industry with our short-term bridge loans.
The OC test is calculated by taking the value of the bridge loan portfolio, the cash held in reserve, and the partial guarantee provided by the Sociedad Hipotecaria Federal (SHF), divided by the outstanding note principal balance of the notes.