Finance
What is a 'mezzanine loan' in commercial real estate financing?
AA loan for the mezzanine level of a building
BA secondary loan secured by the borrower's equity interest in the entity owning the property, subordinate to the senior mortgage✓ Correct
CA government program for mid-rise construction
DA loan guaranteed by the Small Business Administration
Explanation
Mezzanine financing fills the gap between senior debt and equity in commercial real estate transactions. It is secured by the equity in the entity owning the property (not the property itself) and carries higher interest rates than senior debt.
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