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Enter the full legal name of this party exactly as it appears on their ID or business registration.
Enter the full legal name of this party exactly as it appears on their ID or business registration.
A Bridge Loan Agreement is a short-term financing arrangement that provides immediate capital to a borrower to 'bridge' a gap until permanent or longer-term financing is secured — typically 3 to 18 months. Commonly used in real estate (bridge between property purchase and permanent mortgage), business acquisitions (bridge while bank financing is arranged), and startups (bridge between funding rounds). Bridge loans typically carry higher interest rates than permanent financing due to their short-term nature and elevated risk, and often include exit fees, default rates, and personal guarantees. Fill out this free bridge loan agreement template online, e-sign it digitally, and download a legally valid PDF. no account or lawyer needed. Sections: Parties, Loan Terms.
This Bridge Loan Agreement (the "Agreement") is entered into as of ______________ by and between ______________, located at ______________ (the "Lender"), and ______________, located at ______________ (the "Borrower").
Lender agrees to loan to Borrower the principal sum of $0.00 (the "Loan"), to be disbursed in a lump sum on ______________ upon execution of this Agreement and satisfaction of all conditions precedent, including delivery of all required security documents.
The Loan shall bear interest at 12% per annum (the "Contract Rate"), computed on a 365-day year on the actual outstanding principal balance. Interest shall accrue from the disbursement date and shall be paid as set forth in Section 3. If the Loan is not repaid at Maturity or an Event of Default occurs, the outstanding principal and all accrued interest shall bear interest at the Default Rate of 18% per annum from the date of such event.
Unless earlier repaid, all outstanding principal, accrued interest, fees, and other amounts due under this Agreement shall be due and payable in full on ______________ (the "Maturity Date"). Interest may be paid: (a) monthly in arrears; or (b) accrued and paid at Maturity — as selected by the Parties: ____________________. Borrower may prepay all or any portion of the Loan at any time without penalty, except for the Exit Fee described in Section 4.
No exit fee is charged under this Agreement.
Borrower represents that the Loan proceeds will be used for the following purpose: _________________. The expected source of repayment of this Loan is: ______________. Borrower shall promptly notify Lender of any material change in the expected repayment source or any delay that may affect repayment at Maturity.
As security for the Loan, Borrower shall provide the following collateral: ______________. Borrower shall execute all documents necessary to perfect Lender's security interest, including deeds of trust, UCC-1 financing statements, and pledge agreements as applicable.
Events of Default include: (a) failure to pay any amount due at Maturity or within 5 days of demand; (b) breach of any representation, warranty, or covenant; (c) material adverse change in Borrower's financial condition; (d) insolvency or bankruptcy filing; (e) loss, sale, or encumbrance of collateral without Lender's consent; or (f) failure of the expected repayment event to occur by the Maturity Date. Upon an Event of Default, Lender may declare all amounts immediately due and payable and may exercise all rights and remedies under this Agreement, applicable law, and applicable security documents.
This Agreement shall be governed by and construed in accordance with the laws of the State of ______________, without regard to its conflict-of-laws principles.