4 Best Commercial Bridge Loan Providers

Commercial bridge loans provide short-term financing for the purchase of commercial real estate and additional funds for the rehabilitation of a property. While there’s flexibility in commercial bridge loans, they aren’t permanent financing. In addition to funding renovations and upgrades, a commercial bridge loan can be used by borrowers who cannot initially qualify for permanent financing.

Commercial bridge loans can be obtained from local or regional banks or online lenders. Listed below are the four best options from which to choose.

Provider	Best For
AVANA Capital	Quick approval and turnaround time
Bloomfield Capital	Longer repayment term
Arbor	Businesses looking for a loan extension or permanent financing at maturity
C-Loans.com	A loan broker that shops loans to multiple lenders

AVANA Capital

Loan Amount	$3 million to $25 million
Repayment Term	12 to 36 months
Amortization	Interest Only
Recourse/Nonrecourse	Recourse preferred but can offer nonrecourse (LTV will be impacted)
Turnaround Time	45 to 60 days
Prepayment Penalty	TBD
States Available	All Tier 1 and Tier 2 Markets—Nationwide

Interest Rates	8.75% to 9.5%
Origination Fee	2%
Exit Fee	1%
Qualification	Not specified
Loan-to-Value (LTV) based on final value	Up to 75%
Reserve Requirement	To be determined

AVANA Capital is a direct lender that provides commercial bridge loans, construction loans, and SBA 504 loans. Loans through AVANA range between $3 million and $25 million. Preapproval is promised on its website in as few as three days.

While the turnaround time usually falls between 45 and 60 days, it can be as little as 10 to 30 days. AVANA has provided commercial bridge loans to industries, such as hospitality, owner-occupied real estate, and renewable energy, among others.

We like AVANA due to the high maximum loan amount, competitive rates, and quick preapproval and turnaround time.

Bloomfield Capital

Loan Amount	$2 million to $20 million
Repayment Term	Up to three years
Amortization	Interest only
Recourse/Nonrecourse	Both, but most are recourse
Turnaround Time	Generally 30 days
Prepayment Penalty	Six month “lock out”—cannot prepay
States Available	All except California and Nevada

Interest Rates	Starting at 8%
Origination Fee	2% to 6%
Exit Fee	Not listed
Qualification	Based primarily on property
LTV (based on final value)	Up to 80%
Reserve Requirement	Not required, but highly desirable

Available nationwide in all states besides Nevada and California, Bloomfield Capital provides commercial bridge loans of up to $20 million. The longer repayment period is attractive to potential borrowers, with up to three years to either sell or refinance the loan.

Bloomfield offers many uses for funding, including highly structured transactions, discounted note payoffs, property acquisitions, recapitalizations, rehabilitation, lease-up, partner buy-out, and more. Bloomfield positions itself as a strong choice for urgent funding needs.

Arbor

Loan Amount	$8 million minimum
Repayment Term	12 to 36 months, extension options available
Amortization	Typically interest only
Recourse/Nonrecourse	Generally nonrecourse with standard carve-outs
Turnaround Time	30 to 45 days
Prepayment Penalty	N/A
States Available	Nationwide

Interest Rates	6.5% to 9%
Origination Fee	1% at closing, 1% at payoff (waived if Arbor does permanent financing)
Exit Fee	N/A
Qualification	1.25 debt service coverage ratio (DSCR) at exit, lower considered if payment supported by interest reserves or guarantees
LTV (based on final value)	75% of exit value
Reserve Requirement	Monthly deposits required

Arbor is another nationwide lender that offers a variety of mortgage loan products, including commercial bridge loans. It’s an attractive option for businesses that aren’t sure that 36 months will be enough time to complete a project, as extension options are available. With rates as low as 6.5%, Arbor offers some of the best rates on the market.

Some fees could be waived if permanent financing is also secured through Arbor. One advantage Arbor has over the other lenders listed here is with nonrecourse loans. This means the borrower isn’t personally liable for the loan, so personal taxes likely won’t be required. However, a personal credit score of at least 680 may be required to show the borrower’s ability to secure permanent financing.

C-Loans.com

Loan Amount	$1 million to $40 million (and higher)
Repayment Term	Six months to two years
Amortization	Interest only
Recourse/Nonrecourse	Recourse
Turnaround Time	2.5 weeks
Prepayment Penalty	Must cover interest in first three months
States Available	Nationwide

Interest Rates	6% to 9.25%
Origination Fee	2% to 3%
Exit Fee	N/A
Qualification	Minimum 1.25 DSCR on property completion
LTV (based on final value)	Up to 80%
Reserve Requirement	Interest reserve to pay interest during redevelopment

Unlike the other options listed here, C-Loans.com isn’t an individual lender but rather a broker that uses as many as 750 lenders to secure the best commercial bridge loan option for the borrower. The terms listed here are guidelines for what a borrower will find through C-Loans.com. Still, with so many lenders, the ultimate terms will be determined by how well qualified the business is and the circumstances of the property purchase.

Extensive documentation is required when using C-Loans.com so the loan can be shopped around to as many lenders as possible. However, because of this, well-qualified borrowers may find better terms than from the three independent lenders listed.

How We Evaluated the Commercial Bridge Loan Providers

When evaluating commercial bridge loan providers, we considered the minimum and maximum loan amounts, the potential interest rates, and the turnaround time for both approval and loan closing. Some lenders offer nonrecourse lending, which is advantageous because it removes the repayment liability from the individual borrower. General qualifications only differ slightly between the four options listed, so the borrower should consider what factors are most important before applying.

Bottom Line

A commercial bridge loan is an excellent lending product for businesses looking to purchase and renovate a property. Depending on the desired repayment term, the amount desired, and the long-term plan for the property, each of the four lending options listed above have terms that might fit one business better than another.