Bridge loan and mezzanine loans are very similar.  Terms can range from 1 to 3 years with some being due in as long as 5 years.  Rates can be from 8.5-12.5% and points can range from a low 2% up to 5%.  Bridge loan and mezzanine loans may have prepayment penalties but sometimes they do not.

Bridge loan are just what the name implies.  They are used to bridge the gap between two types of loans.  The most common type of bridge loan is to bridge between construction financing and permanent financing.

The developer of a shopping center may need a bridge loan to pay off construction financing because the property is not stabilized and the property will not qualify for a permanent commercial mortgage.  The bridge loan ‘takes out’ the construction financing and bridges the time gap while the property brings on tenants and becomes a stable income producing property that qualifies for a traditional long-term commercial loan.

Mezzanine loans are not that much different from Bridge loan.  Mezzanine loans bridge a gap but it’s a different type of gap.  Think about what mezzanine really means … it means in the middle.  The mezzanine loan can be used as interim financing to stabilize existing businesses or can be used to fill a gap in the “capital stack” so that a closing can be accomplished.

For more details about bridge loan and mezzanine loans it is easy to contact the loan specialists at Dividend America.  Just go to or fill out our easy online bridge loan application and an expert will call you for a no pressure conversation about your needs.

Dividend America, Michael Gross, President, 404-819-4511 or

Providing Bridge Loan financing in the following metro areas; Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, Fort Lauderdale, Orlando, San Diego, New York, San Francisco, Phoenix, Atlanta, Tampa Bay, Detroit, Minneapolis-Saint Paul, Charlotte, Dallas / Fort Worth, Portland, Seattle, Cleveland, Oklahoma City, Jacksonville, Indianapolis, Nashville, Kansas City, Louisville, Milwaukee, New Orleans, Philadelphia, Raleigh, Sacramento, Salt Lake City, San Antonio, San Jose, Saint Louis, Tucson, Austin, Baltimore.