Acquisition Bridge Loans
Acquisition bridge loans provide fast, short-term capital to close real estate and business acquisitions when conventional financing can't meet the deadline. Close in 10–21 days, fund up to 80% LTC, and transition to permanent debt after stabilization.
About Acquisition Bridge Loans
Acquisition bridge loans are short-term financing vehicles designed to close an acquisition quickly — before permanent debt is in place or the asset is ready for agency/bank underwriting. Common scenarios include distressed or off-market real estate deals with tight contingency deadlines, value-add CRE acquisitions, and business acquisitions where SBA approval would miss the seller’s deadline. Bridge debt is replaced by long-term financing (SBA, conventional, or agency) once the asset stabilizes.
Key Features & Benefits
Everything you need to know about what makes Acquisition Bridge financing a smart choice.
Fast Closings (10–21 Days)
Meet tight seller deadlines and lock down acquisitions faster than SBA or bank financing allows.
Up to 80% LTC
Finance up to 80% of total acquisition cost — higher than traditional bridge for experienced sponsors.
Interest-Only Payments
I/O payment structure maximizes acquisition leverage and preserves operating cash flow.
Minimal Documentation
Streamlined paperwork versus SBA or conventional — asset-focused underwriting.
Light Covenants
Business-friendly covenant packages appropriate for transition/stabilization periods.
Clear Exit Path
Structured with defined takeout plan — usually SBA 504, conventional CRE, or agency refinance.
Who Uses Acquisition Bridge Financing
- Racing to close distressed or off-market commercial real estate
- Value-add CRE acquisition requiring rapid close
- Business acquisition when SBA timeline is too long
- Closing while waiting for long-term debt to finalize
- Acquiring property pre-stabilization (low occupancy/NOI)
- Buying out a partner with a short deadline
- Funding an auction or 1031 exchange purchase
Qualifications & Eligibility
- Clear exit strategy: refinance to long-term or sale within 12–36 months
- Borrower liquidity — typically 10%+ of loan amount post-close
- Credit score 680+ for most programs
- Experience in the asset class or business type
- 20%+ equity (cash or existing equity) in the transaction
- Property or business generates (or will generate) supporting cash flow
How It Works
Our streamlined process gets you from application to funding quickly.
Deal Overview
Submit purchase contract, sources/uses, business plan, and borrower background.
Term Sheet
Indicative terms within 24–48 hours: rate, LTC, term, fees.
Due Diligence
Appraisal, title, and borrower financial review — parallel-tracked with closing docs.
Close & Fund
Close in 10–21 days from term sheet signing.
Takeout/Exit
Begin preparing permanent financing 3–6 months before bridge maturity.
Why Choose Growth Fund Partners for Acquisition Bridge
Frequently Asked Questions
Common questions about Acquisition Bridge loans answered.
How fast can an acquisition bridge loan close?
Most deals close in 10–21 days from term sheet signing. Ultra-fast closings (5–7 days) are possible with pre-existing relationships and motivated lenders.
What is LTC vs LTV on bridge loans?
LTC is Loan-to-Cost (including purchase price + planned improvements). LTV is Loan-to-Value based on current or stabilized appraised value. Bridge lenders often cap at both — e.g., 80% LTC and 70% LTV as-is.
What happens at the end of the bridge term?
You refinance into permanent financing (SBA, agency, conventional bank, or CMBS) or sell the asset. Most programs allow 6–12 month extensions for a fee if needed.
Are bridge loans recourse or non-recourse?
Most smaller bridge loans are recourse. Larger institutional bridge deals (typically $5M+) may offer non-recourse with standard carve-outs.
Related Loan Programs
Explore similar financing options that might fit your needs.
Ready to Apply for Acquisition Bridge Financing?
Get pre-qualified in minutes. No impact to your credit score.