{"ok":true,"canonical_url":"https://dealroom.so/glossary/bridge-loan","api_url":"https://dealroom.so/api/public/glossary/bridge-loan","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"bridge-loan","term":"Bridge Loan","group":"The loan itself","definition":"A short-term loan used to \"bridge\" a gap in financing, often until a more permanent loan is secured. Buyers might encounter this if they need quick capital before a long-term SBA loan funds, which is rare for acquisitions.","what_it_means":"While common in real estate, bridge loans are unusual for 7(a) business acquisitions, as the SBA loan typically funds the entire project at once. If considered, understand the high interest rates and short repayment terms. For a 7(a) deal, ensure your bridge loan is permissible and doesn't complicate your SBA financing.","url":"https://dealroom.so/glossary/bridge-loan","official_sources":[],"related":[{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"conventional-loan","term":"Conventional loan","url":"https://dealroom.so/glossary/conventional-loan"},{"slug":"loan-amount","term":"Loan Amount","url":"https://dealroom.so/glossary/loan-amount"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"}],"related_questions":[{"question":"Are funds from a bridge loan eligible to satisfy the required equity injection?","url":"https://dealroom.so/sba-7a/questions/are-funds-from-a-bridge-loan-eligible-to-satisfy-the-required-equity-injection"},{"question":"Can a bridge loan from a private lender count towards the buyer's required equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-bridge-loan-from-a-private-lender-count-towards-the-buyer-s-required-equity-injectio"},{"question":"Can I use the working capital portion of my SBA 7(a) loan to repay a short-term bridge loan used for acquisition expenses?","url":"https://dealroom.so/sba-7a/questions/can-i-use-the-working-capital-portion-of-my-sba-7-a-loan-to-repay-a-short-term-bridge-loan"},{"question":"Are SBA 7(a) loans only for businesses unable to get traditional bank loans?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-only-for-businesses-unable-to-get-traditional-bank-loans"},{"question":"What exactly is an SBA 7(a) loan, and who offers these loans?","url":"https://dealroom.so/sba-loans/basics/what-exactly-is-an-sba-7-a-loan-and-who-offers-these-loans"},{"question":"How do SBA 7(a) loan interest rates compare to standard commercial loans?","url":"https://dealroom.so/sba-loans/basics/how-do-sba-7-a-loan-interest-rates-compare-to-standard-commercial-loans"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Bridge Loan","url":"https://dealroom.so/glossary/bridge-loan","source_type":"DealRoom Data"}}