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What is a bridge loan?
In lending terms, a bridge loan is a short-term loan that is often
used to support a project after one loan (such as a construction
loan) ends and before the time when the development will be sold or
permanent financing will be secured.
Bridge loans are interim financing. They cover the period from the
end of one loan to the start of another.
In residential lending (which Gala Resources does not engage in) they are used when a borrower wants to buy a
second home before selling a first home, and are sometimes called
"swing loans."
Lead underwriters in initial public stock offerings (IPOs) may often
provide a bridge loan to the company for needed working capital,
secured by shares of the company’s stock.
Bridge lending for commercial lending for real estate projects is often done by
hard money funders.
Gala Resources makes bridge loans to real estate investors, builders
and dealers.
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