bridge loan


Definition of bridge loan

: a short-term loan used to finance an enterprise, investment, or government pending the receipt of other funds

Examples of bridge loan in a Sentence

Recent Examples on the Web Rival banks joined together to offer bridge loans, to help keep businesses open until the utility claims came through., "Business recovery efforts continue, one year after the Merrimack Valley explosions - The Boston Globe," 13 Sep. 2019 The buyer obtained a $27 million bridge loan from Greystone for the acquisition. Katherine Feser, Houston Chronicle, "Real estate transactions: Songy Highroads makes Sugar Land acquisition," 25 Oct. 2019 The short-term cash infusion would serve as a bridge loan until the new media rights deal begins in 2025. Jon Wilner, The Denver Post, "Pac-12 not selling media rights ownership, Larry Scott says; may still take on partner," 26 Sep. 2019 Heritage Housing is acquiring Barbour Gardens with a bridge loan from Capital for Change, a Connecticut-based, not-for-profit lender. Rebecca Lurye,, "Vacated public housing project in Hartford’s North End will be renovated by Norwalk developer," 29 Oct. 2019 The announcement marks a dramatic turnaround in the fortunes of Harland and Wolff, which was placed into administration by the UK government in August after failure to secure a bridge loan pushed the company to the brink of bankruptcy. Hanna Ziady, CNN, "Titanic shipyard was on the verge of bankruptcy. It's been thrown a lifeline," 1 Oct. 2019 Under Slingerland’s leadership, the group has grown rapidly, said Antonia Hernandez, president and CEO of the California Community Foundation, which provided the $2-million bridge loan. David Zahniser, Los Angeles Times, "L.A. nonprofit with ties to Garcetti fires CEO amid financial upheaval," 29 Sep. 2019 The floating-rate bridge loan has a term of three years plus an extension option with interest only payments, according to New York Life. Katherine Feser, Houston Chronicle, "NY Life provides $208M loan for Hines building downtown," 17 July 2019 Technically, the utility will get a bridge loan from the fund, then file an application for recovery with the California Public Utilities Commission, which will decide how much of that the utility can keep. Kathleen Pender,, "How will the new wildfire insurance fund affect you? Here are some answers," 13 July 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'bridge loan.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of bridge loan

1973, in the meaning defined above

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Time Traveler for bridge loan

Time Traveler

The first known use of bridge loan was in 1973

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Statistics for bridge loan

Last Updated

10 Dec 2019

Cite this Entry

“Bridge loan.” The Dictionary, Merriam-Webster Inc., Accessed 10 December 2019.

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More Definitions for bridge loan

bridge loan


Financial Definition of bridge loan

What It Is

A bridge loan is a short-term, high-interest loan that provides a quick source of cash for commercial or individual needs.  It is called a bridge loan because it serves as a bridge between one period of funding and another, more permanent source of funding.

How It Works

To illustrate, suppose a company has been approved for a $1 million loan from a bank. However, this money will not be available for six months, and they are running short on cash. The company could apply for a six-month bridge loan of $50,000 to cover their expenses until the money from the $1 million loan comes through.

Why It Matters

Often, businesses and individuals find themselves in need of fast funding during an interim period while they work out access to larger amounts of funds. The bridge loan essentially "bridges" the gap between when money runs out and when more money will be received.

The cost of bridge loans is often much higher than more traditional financing methods, and they are only meant to be used in special circumstances. If a company must rely on short-term, high-interest financing to continue operations, chances are good that the company is not viable in the long run.

Source: Investing Answers

bridge loan


English Language Learners Definition of bridge loan

chiefly US : money that a bank lends you for a short period of time until you receive the money that you are getting from another source (such as from selling your house)

bridge loan

Legal Definition of bridge loan

see loan

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Rhyming Dictionary: Words that rhyme with bridge loan

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