Glossary · The loan itself
Private Bridge Loan
In short
This is a short-term, high-interest loan from a private lender, used to cover immediate funding gaps until a more permanent financing solution, like an SBA loan, closes. It's a temporary fix.
What it means in a deal
While a private bridge loan can help you close a deal quickly, the SBA has strict rules about how it can be used in conjunction with a 7(a) loan, especially regarding equity injection. Ensure any bridge financing is structured to comply with SBA standby requirements, or it may jeopardize your 7(a) loan.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Private Bridge Loan
- Can a bridge loan from a private lender count towards the buyer's required equity injection?
- Are funds from a bridge loan eligible to satisfy the required equity injection?
- Can a private investor provide a loan that counts as equity injection for an SBA 7(a) loan?
- Can funds from a private equity firm count as equity injection for an SBA 7(a) loan?
- When does ownership by a private equity fund trigger affiliation for SBA size standard purposes?
- Can a subordinated loan from a private third-party investor count as equity injection for an SBA 7(a) loan?
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.
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