What is a Bridge Loan?
A bridge loan is short-term financing designed to “bridge” the gap between an immediate capital need and longer-term financing. These loans feature faster underwriting, more flexible criteria, and closings in as little as 7-14 days — compared to 60-90+ days for conventional or SBA financing.
The trade-off is cost: bridge loans carry higher rates (typically 9-14%) and often require 1-3 points upfront. They make sense when the cost of missing the opportunity exceeds the cost of the bridge.
Common Use Cases
⏰ Time-Sensitive Acquisitions
Close quickly to beat competitors or meet a seller's timeline.
🔧 Value-Add Projects
Finance renovations before refinancing into permanent debt.
📈 Lease-Up Period
Bridge while stabilizing occupancy to qualify for better rates.
🏛️ Pending SBA Approval
Close now with bridge, pay off with SBA proceeds later.
🔄 1031 Exchange Timing
Meet tight exchange deadlines while arranging permanent financing.
📊 Business Turnaround
Short-term capital while improving financials to qualify for term debt.
⚠️ Important Considerations
Bridge loans carry higher costs than permanent financing. They work best when you have a clear exit strategy and realistic timeline. We help ensure bridge financing makes sense for your specific situation before proceeding.
Exit Strategies
- Refinance: Transition to conventional or SBA permanent financing once criteria are met
- Sale: Sell the property or business to repay the bridge
- Cash Flow: Use business cash flow to pay down/off (less common)
When Bridge Makes Sense
- The deal won't wait for conventional timelines
- You have a clear, realistic exit strategy
- The opportunity cost of waiting exceeds bridge costs
- You're confident in securing permanent financing
Bridge Loan Terms
- Loan Amount
- $100K - $10M+
- LTV
- Up to 80%
- Term
- 6-36 months
- Rate Range
- 9-14%
- Points
- 1-3%
- Payments
- Interest-only
- Closing Time
- 7-14 days