Glossary · The loan itself
Bridge Loan
In short
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 in a deal
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.
Related terms
Common questions about Bridge Loan
- Are funds from a bridge loan eligible to satisfy the required equity injection?
- Can a bridge loan from a private lender count towards the buyer's required equity injection?
- Can I use the working capital portion of my SBA 7(a) loan to repay a short-term bridge loan used for acquisition expenses?
- Are SBA 7(a) loans only for businesses unable to get traditional bank loans?
- What exactly is an SBA 7(a) loan, and who offers these loans?
- How do SBA 7(a) loan interest rates compare to standard commercial loans?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.