Bridge Loan Sizes – Loans amounts are generally capped at $5 million (SBA portion). Certain eligible energy-efficient or
manufacturing projects may qualify for up to $5.5 million, in line with SBA standards. Generally, the total project limit is $20 million. (This restriction applies to the principal
amount of the loan directly supported by the 504 bridge loan, plus all other loans for the same loan purpose that close on or about the same date.)
利率 – The second mortgage bridge loan and note will bear interest at a rate set by the commercial lending partner, at least
equal to the rate applicable to the first mortgage note during the interim.
Origination Fees – For straight acquisition projects and projects with renovations, the commercial lending partner agrees to pay an amount equal to one half of the origination
fee attributable to the second mortgage bridge loan or .5% (one half of one percent) of the principal sum of the bridge loan, whichever is greater. For ground-up construction projects, the
origination fee is 1% (one percent) of the principal sum of the bridge loan.
Commercial Lending Partner Servicing Fee – The commercial lending partner is entitled to retain a servicing fee on the bridge
loan of 1.25% during the first six (6) months of the term of the bridge loan, provided the bridge loan is not in default (straight acquisition projects and projects with
renovations only; servicing fees are not applicable for ground-up construction projects). The servicing fee shall be a portion of interest payments made by the borrower equal to
1.25% divided by the non-default annual interest rate payable on the bridge loan.
For example, assume the borrower’s monthly interest payment on the second mortgage bridge loan is $1,000 at an interest rate of 5%. By utilizing the described calculation (1.25%
÷ 5%), the commercial lending partner would retain 25% of the total interest collected ($250) as the servicing fee.
Term – The initial term of the bridge loan is six (6) months. If the 504 loan has not funded by expiration of the initial six (6) month term, the second mortgage bridge loan will be
automatically extended at six (6) month increments with the following pricing adjustments:
- Upon extension of the term, the servicing fee the commercial lender is entitled to retain on the bridge loan ends (this provision applies to non-ground-up construction projects only).
- If the term of the second mortgage bridge loan is extended beyond one year (and for every 6-month period of extension thereafter), there will be a 0.25% (one quarter of one percent)
Funding – Assuming participation interest of 100% of the second note, funds from the bridge loan must comprise between 45% and 75% of the total amount of loan funds disbursed at
all times during the interim.
Recourse – The 504 Bridge Loan is non-recourse to the permanent lender.
Repayment – Bridge loan funds are repaid through takeout via the SBA 504 loan.