Agricultural Bridge Loans
Bridging Loans for Farmers and Ranchers
Agricultural Bridge Loans & Lending Program Details
Commercial Finance Partners offers agricultural bridge loans with 12 to 36 month terms and a minimum loan amount of $300,000.
Our team understands the risk involved in farming and how factors outside your control can affect your ranch and farming operation. We understand and appreciate that our clients might be in a situation, or are presented with an opportunity, that does not easily fit into the rigid structure of institutional lenders.
We can offer short-term bridge programs can be used for real estate acquisition (owner occupied or investor real estate), business acquisition, business expansion, equipment purchases, and debt refinancing.
Agricultural Bridge Loan Details:
- Minimum loan amount $300,000
- LTV 50% to 65%
- 12 to 36 month terms
- Interest only
- Agricultural land and residential development land loans available
- Loan proceeds cannot be used to finance vertical construction projects
- Program not available in California and Nevada
How Agricultural Bridging Loans Work
Bridge loans are structured for short-term financing needs: interim financing in preparation for a long-term loan. Our short-term bridge programs can be used for real estate acquisition (owner occupied or investor real estate), business acquisition, business expansion, equipment purchases and debt refinancing.
Agricultural land and residential development land loans are available at 50% to 65% LTV with interest-only payments; loan proceeds cannot be used to finance vertical construction projects, and the program is not available in California and Nevada.
Exit Strategies for a Farm Bridge Loan
Because a bridge loan is interim financing, plan the long-term loan that will replace it before the bridge loan closes. Long-term options include:
- FSA loans: FSA Farm Ownership loans may be used to purchase farmland or to refinance debt, with terms that cannot exceed 40 years.
- Farm, ranch and timber land loans: Our non-USDA farm, ranch and timber land loans run from $250,000 to $10,000,000 with a 30-year term.
- USDA B&I loans: For rural businesses, USDA B&I guaranteed loan funds may be used for takeout of interim financing, provided the lender applies before the interim loan closes.
See all of our USDA and agricultural loans. Sources: 7 CFR 5001.121; USDA Farm Service Agency, Guaranteed Farm Loans.
Agricultural Bridge Loan FAQs
What is an agricultural bridge loan?
Bridge loans are structured for short-term financing needs: interim financing in preparation for a long-term loan.
How long is an agricultural bridge loan?
Our agricultural bridge loans have 12 to 36 month terms with interest-only payments. The minimum loan amount is $300,000, and the LTV is 50% to 65%.
What can bridging loans for farmers be used for?
Our bridge programs can be used for real estate acquisition (owner occupied or investor real estate), business acquisition, business expansion, equipment purchases and debt refinancing. Agricultural land and residential development land loans are available; loan proceeds cannot be used to finance vertical construction projects, and the program is not available in California and Nevada.
How is an agricultural bridge loan repaid?
A bridge loan is interim financing in preparation for a long-term loan. Long-term options include FSA Farm Ownership loans, which may be used to refinance debt; non-USDA farm, ranch and timber land loans with a 30-year term; and, for rural businesses, USDA B&I loans, which may be used for takeout of interim financing when the lender applies before the interim loan closes.
Why Work with Commercial Finance Partners?
- Leverage Existing Assets
- Increased Working Capital
- Creative Deal Structure
- Alternative to Equity
- Growth Focused
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