Growth Lending launches bridge loan to support rural US businesses
Growth Lending, the specialist lender for growing businesses, has launched a new product designed to offer further support to rural US businesses in achieving their growth ambitions.
The firm’s short-term bridging loan is aimed at eligible businesses awaiting a loan under the US Department of Agriculture (USDA) guaranteed business loan program. As the time between application, approval, and receipt of the funds can be up to 12 months, the loan bridges the gap between loan approval from a USDA lender and guarantee approval from the USDA, accelerating businesses’ access to capital.
Ranging from $2.5m to $12m, these loans can be used to pursue the range of growth opportunities supported by the USDA Guaranteed Loan Program, including property purchases, acquisitions, or upgrades to equipment and technology. When the USDA-approved loan is then received, the bridge loan is refinanced.
Growth Lending expanded to the US at the start of 2023, following a period of rapid growth. The business has already grown its US team since opening its first office in Atlanta, with Howard Sturgeon the firm’s most recent hire – a Houston-based Business Development Executive.
Lejla Hodzic, Chief Risk Officer at Growth Lending said: “The launch of this new product is the next exciting step on our journey of expanding our offering and operations in the US.
“We identified a gap in the lending ecosystem which meant that US businesses were often being held back from pursuing growth and facing long waits to receive the funding required to scale-up.
“The key purpose of the USDA Guaranteed Loan Program is to increase rural businesses’ access to capital and our new product very much speaks to this same cause. Our bridge loan fills the gap between USDA lender approval and USDA guarantee approval – a period which can take up to twelve months – providing firms with much-needed working capital in a quick time frame.
“We’re seeking opportunities to work collaboratively with existing USDA lenders to help accelerate their clients’ access to cash and although we have already identified some key partners, we are always eager for new introductions to help us on our mission to support even more growing businesses.”
To find out more about Growth Lending’s new bridge loan product, get in touch with a member of our expert lending team.