Very simply, a commercial bridge loan is a short term loan (usually no more than 3 years) to give the borrower time to stabalize the property or their financial/credit situation in order to either:
(A) Refinance the commercial property or
(B) Sell the property.
Unlike our bridge mortgage loan program, most commercial bridge financing loans carry double-digit interest rates and significant front end points.
How do Bridge Loans Work?
Commercial bridge loans “bridge” the gap until the borrower can get conventional commercial financing. They serve a very important role in commercial real estate due to the limitations of traditional bank (including SBA) loan programs.