RV park and campground financing is available through conventional lenders, SBA programs, and USDA — each suited to a different borrower profile and transaction type. Conventional loans are the right fit for experienced operators with 25% or more down, strong historical cash flow, and solid credit, and can accommodate very large loan amounts for the right transaction. For everyone else — those looking to preserve capital, finance ground-up construction, acquire a first or second park, or access more flexible underwriting — SBA 7a and 504 loans are almost always the better path. This page covers all three programs, with particular depth on SBA given how much more flexible and widely applicable those programs are for most RV park transactions.

SBA 7a and SBA 504 loans are the most flexible financing available for RV parks, campgrounds, glamping resorts, and other outdoor short-term lodging properties. Down payments start at 10% — and drop to 5% if the seller holds a note on standby, or $0 for experienced operators starting or buying another park using the 7a program. Loans are fully amortized over 25 years (sometimes longer) with no balloon payment, and the SBA 7a can finance purchase, purchase with renovations/expansion, full ground-up construction (including purchase of land), refinance, refinance with expansion/improvements or partner buyouts and partner buyins — all under a single loan. Rates are typically floating or variable rates at the Prime Rate plus a spread/margin with the 7a. The 504 program offers fixed rates for part of the financing structure.

RV Park Financing — What Types of Properties Does This Cover?

SBA financing is available for all of the following property types, as long as more than 50% of revenue comes from short-term stays of 30 days or less:

• RV parks and RV resorts
• Campgrounds and RV campgrounds
• Glamping resorts (yurts, safari tents, luxury cabins, private retreats, tiny homes)
• Motorcoach resorts and motorhome parks
• Cabin rental businesses/properties
• Outdoor short-term lodging properties serving workforce or contractor housing (pipeline workers, traveling nurses, data center crews, etc.)
• Mixed-use parks combining transient stays with seasonal or monthly guests

SBA 7a and 504 loans are available for RV parks and resorts of all sizes — from smaller campgrounds to full-service lakeside resorts like this one.

Green Commercial Capital structures SBA loans for RV parks and campgrounds and we have a solid roster of conventional and USDA lenders for lower-leverage, non-SBA transactions. This page covers every financing scenario — acquisition, construction, refinance and expansion for all outdoor short-term lodging properties, including glamping resorts, cabin rental businesses, private retreats and RV parks that double as workforce housing — with the rates, requirements, and deal structures that actually apply today. For questions about a specific transaction, call 1-800-414-5285.

RV Park Financing Scenarios — Which Situation Applies to You?

SBA financing works differently depending on what you are trying to accomplish. The transaction type matters for how the loan is structured, how much down payment is required, and which lenders are the right fit. Here is how the most common situations break down:

Buying an Existing RV Park

The most straightforward scenario. If the park has solid historical cash flow and the seller’s tax returns support the revenue, most experienced SBA lenders can structure a loan with 10% down — or 5% if the seller is willing to hold the other 5% on full standby. The lender underwrites based on the park’s actual operating history rather than projections, which makes approval more predictable. Business acquisition financing includes goodwill, real estate, equipment and can also include working capital.

Ground-Up RV Park Construction

Fully eligible under the SBA 7a program with 10% down for a startup. The right lender will finance land acquisition, all construction costs, interest reserves, and working capital to cover payments during the ramp-up period — all in a single loan. No operating history required. The underwriting is based on the business plan, financial projections, and borrower qualifications rather than historical revenue.

Expanding an Existing RV Park Business You Already Own

If you already own at least one cash-flowing RV park, you can expand — either by purchasing additional parks or building new ones — with no down payment under the SBA’s business expansion rules. Same NAICS code, same ownership structure, and the existing park must demonstrate that you are a capable operator.

Purchasing and Expanding an Existing Park

Acquiring a park and immediately expanding it — adding sites, infrastructure, or amenities — can often be structured as a single SBA 7a loan covering both the acquisition and the expansion costs. This is more complex than a straight acquisition but avoids the need for two separate financings and two closings. Projections will most likely be needed to fund the expansion. The 504 can also be used for this purpose.

Refinancing Existing RV Park Debt

Both the SBA 7a and SBA 504 programs can refinance existing commercial debt on an RV park, including conventional loans, prior SBA loans, and seller-held financing. Refinancing to a longer amortization period, lower rate, or better terms is a legitimate use of the programs. Some refinances can also include working capital or improvements in the loan.

Cash-Out Refinance for Improvements or Expansion

If you have equity in an existing park, a refinance that pulls out cash for capital improvements — adding sites, upgrading infrastructure, building amenities — can often be structured under both programs. Each program has specific rules about how much can be “cashed out” and what for, and the improvements need to benefit the business and the total loan needs to make sense based on the park’s cash flow.

Financing a Glamping Resort or Cabin Rental Property

Glamping resorts, yurt villages, luxury cabin developments, private retreats, safari tent operations, and similar properties are eligible under the same framework as traditional RV parks — as long as more than 50% of revenue comes from short-term stays. The collateral (tents, yurts, non-standard structures) makes generalist lenders nervous, but lenders experienced with outdoor short-term lodging finance these regularly.

Financing a Workforce Housing RV Park

Parks serving construction crews, pipeline workers, traveling nurses, and similar guests are SBA-eligible with experienced lenders because those guests stay short-term for a specific project or rotation. A blended park — recreational guests plus workforce occupants — is an acceptable and potentially stronger deal structure. The key is how the guest agreements are written as month-to-month registrations, not annual leases.

Financing a Startup RV Park with No Operating History

SBA lenders do not require operating history for RV park construction loans. The underwriting is based entirely on the business plan, financial projections, feasibility study (if required), and the borrower’s qualifications. Startups require 10% down, which can come from land equity, borrowed funds, investors, or other flexible sources.

Financing with Seller Financing (Seller Standby Note)

If the seller is willing to hold a note on full standby, a buyer (or first-time buyer) can structure a transaction with as little as 5% from their own funds — the seller holds the other 5% as a second mortgage on full standby for the life of the SBA loan. “Full standby” means no payments and no interest for the entire duration of the SBA loan. See our dedicated blog post re: full standby seller notes for the complete structure (link at bottom of page).

SBA 504 Financing for Larger RV Parks

The SBA 504 program can be a better fit than the 7a for larger acquisitions where the borrower wants long-term fixed-rate financing on the real estate component, or where they need to borrow more than the 7a program can provide. The Green 504 allows RV park owners to finance multiple parks totalling over $45 million in financing.

USDA Financing for Rural Parks

The USDA Business & Industry loan program is available for rural RV parks with 20% down and offers 30-year amortization — five years longer than SBA programs. Better suited for borrowers with more equity who plan to hold long-term.

SBA vs. Conventional vs. USDA — How Do RV Park Loans Compare?

*Closing timelines reflect typical ranges for straightforward transactions with experienced lenders and complete loan packages. Every deal is different — some close faster, and unforeseen issues such as appraisal delays, title problems, or environmental findings can extend any timeline regardless of program type. USDA timelines reflect the two-party approval process; the state USDA Rural Development office approval is largely outside the lender’s control. Note on 504 down payment: RV parks and campgrounds are classified as special-use properties under the 504 program, which requires 15% down for established businesses and 20% for new construction or startup businesses.

RV Park Down Payment Requirements — How Much Do You Need?

The answer depends entirely on which scenario applies to you. There are three distinct situations:

If you already own an RV park and are expanding via acquisition: $0 down is possible under the SBA’s business expansion rules. You must be purchasing another park of the same type (same NAICS code), using the same entity and ownership structure, and the existing park must be cash-flowing well enough to demonstrate that you are a capable operator. This is the cleanest path to 100% financing and it has no geographic restriction — for some lenders, the new park does not need to be near the existing one.

If you’re buying your first park from a seller willing to hold paper: As of June 1, 2025, you must contribute at least 5% from your own sources, and the seller can hold the other 5% as a second mortgage on full standby for the life of the SBA loan. “Full standby” means no payments, no interest — for as long as the SBA loan is outstanding.

If you’re buying your first park with no seller note: The standard SBA 7a requirement is 10% down. The good news is that the SBA is extremely flexible about where that 10% can come from — see the section on acceptable down payment sources below.

For construction loans, the same structure applies for the 7a: 10% down for a true startup, $0 for an expansion of an existing park business.

Acceptable Down Payment Sources for SBA RV Park Loans

The SBA is more flexible about down payment sourcing than most borrowers realize. Acceptable sources include:

• Cash from savings or business accounts — the most straightforward
• Borrowed funds — you can borrow all or part of your down payment if you or your spouse have stable outside income sufficient to service the debt. This is one of the most underused options.
• Investor funds — money from friends or family in exchange for a small equity stake in the business (typically 2%–5% ownership)
• Gift funds — allowed, though lenders typically want to see that you have some of your own cash in the deal
• ROBS (Rollover for Business Startups) — qualifying retirement accounts from a former employer can often be rolled over tax and penalty-free. The rules on which accounts qualify are specific — contact Green Commercial Capital to walk through the options.
• Land equity — if you already own the land and have for more than one year, the equity above your original purchase price (based on current appraised value) counts toward the injection with the 7a. Two years of land ownership is required to use current value under the 504.
• Seller-held second mortgage on full standby — up to half of the required equity injection can come from a seller note on full standby for the life of the loan for either the 504 or the 7a.

The SBA also allows combinations of the above. The key constraint is lender comfort — even when the SBA rules allow a structure, the lender has to feel good about the overall risk profile of the deal. Nearly every lender will also want to see that you have some post-closing liquidity — cash in the bank after the transaction closes. Putting every dollar into the down payment and having nothing left is a problem regardless of how clean the rest of the deal looks.

SBA RV Park Loan Rates — What Are Current Rates?

SBA 7a loans for RV parks are almost always floating rate loans tied to the Prime Rate. The spread (or margin) over Prime varies by lender and transaction quality:

• Solid transactions for very good borrowers, solid cash flow: Prime + 0.50% to Prime + 1.00% (Prime + 0% may be possible from time to time depending on transaction/lender/overall risk)
• Average transactions: Prime + 1.50% to Prime + 2.00%
• Harder transactions: Prime + 2.25% to Prime + 2.75% (the SBA cap is Prime + 3.00%)

Some lenders offer 3- or 5-year fixed rate options on the 7a, though these are less common for construction deals. All SBA 7a real estate loans are fully amortized over 25 years with no balloon payment.

One underappreciated feature of the floating rate structure: if a borrower eventually refinances into a conventional loan — which many do after 3 to 5 years once the park has stabilized — that conventional loan will almost certainly be based on a different index (like the 5-year CMT) and will likely be a fixed rate. The floating rate on the 7a is largely a short-to-medium term reality, not a permanent one.

SBA RV Park Eligibility — What Qualifies?

The primary eligibility test is straightforward: more than 50% of the park’s revenue must come from stays of 30 days or less. This rule applies whether you are buying an existing park, building a new one, or expanding an existing one.

In practice, “30 days or less” captures:

• Vacationers and recreational travelers
• Seasonal guests on month-to-month registrations (many lenders accept this)
• Workforce housing residents — pipeline crews, data center construction workers, traveling nurses, and similar — who stay short-term for a specific project or rotation

The rule exists because SBA loans are intended for owner-operated businesses, not passive investment properties. A park where the majority of revenue comes from transient guests requires active management — marketing, reservations, maintenance, hospitality — in a way that a long-term-stay mobile home park does not.

Parks with a mix of short-term and longer-term guests are still eligible, as long as the short-term revenue exceeds 50%. Monthly guests on month-to-month “leases” are counted as short-term by some lenders who are experienced with this property type. The key is the lease or registration structure — a month-to-month agreement is very different from an annual lease.

SBA 7a loans are available for RV park acquisitions, ground-up construction, expansions, and refinances — with as little as 10% down and no operating history required for construction projects.

Management Requirements for SBA RV Park Loans

SBA loans require the owner to be involved “enough” in the business — but what that means in practice is interpreted by each individual lender. Employees or “third party” Management Companies can operate the park day-to-day, but lenders need to see that the owner has ultimate authority over the bank account and over hiring and firing, etc. and not giving a management company or employee so much control that the owner is essentially a passive investor.

Lenders will review any management contracts with the same caveat in mind: the management agreement cannot give the company excessive control. Lenders who specialize in this space are much more comfortable with management companies than generalist SBA lenders who don’t fully understand outdoor short-term lodging operations.

If a borrower lives far from the park, some lenders have gotten comfortable with the situation when the on-site manager has a small ownership stake — typically 2% to 5%. The reasoning is that ownership creates accountability. It’s an unusual structure but one that has gotten deals done that otherwise wouldn’t have.

RV Park Construction Loans — Financing Ground-Up Development with an SBA 7a

Ground-up construction for RV parks, campgrounds, glamping resorts, and cabin rental developments is fully eligible under the SBA 7a program, and the right SBA lender can structure a single loan that covers everything:

• Land acquisition
• All construction costs
• Equipment and FF&E
• SBA guaranty fee and closing costs
• Interest reserves during construction
• Working capital to cover the first 6 to 24 months of loan payments after opening

That last item is the one most borrowers don’t know about. The best SBA lenders for this property type will build enough working capital into the loan to cover payments during the ramp-up period — while you are building occupancy and before the park has reached stabilized cash flow. This is extremely unusual in commercial construction lending and one of the structural advantages of the SBA 7a for this use case.

Startups require 10% down for construction loans. Experienced operators expanding an existing park business can do construction with no down payment under the expansion rules described above.

SBA 7a Construction-to-Permanent Financing — Effectively a High-Leverage Bridge to Long-Term Ownership

One of the most underappreciated structural advantages of the SBA 7a for ground-up RV park development is how the loan functions over the full arc of a project — from breaking ground to stabilized operations to long-term ownership or sale.

The SBA 7a construction loan is technically a construction-to-permanent loan. It funds the land acquisition, covers all construction costs, finances interest reserves during the build period, and converts automatically to a permanent 25-year fully amortizing loan upon project completion — all under a single closing. There is no separate construction loan, no conversion process, no second closing.

But the structure has another dimension that makes it function more like a bridge loan than a traditional permanent mortgage — and that is actually a feature, not a limitation.

The SBA 7a carries a 3-year prepayment penalty of 5% in year one, 3% in year two, and 1% in year three. After year three, the penalty is gone entirely. For a ground-up RV park project, the timeline typically looks like this: 4 to 12 months of construction (sometimes up to 18 months for a more complex project), followed by 12 to 24 months of occupancy ramp-up to reach stabilized cash flow. By the time the park is fully operational and generating strong, consistent revenue — typically 24 to 36 months from closing — the prepayment penalty is at 1% or already expired.

At that point the borrower has a stabilized, income-producing asset with documented cash flow, real equity, and a park that can be appraised and underwritten on its actual performance rather than projections. That is an entirely different borrowing profile than the one that existed at closing — and, if necessary, it opens the door to refinancing into conventional long-term fixed-rate financing, a USDA loan, or an SBA 504 with meaningfully better terms than a floating-rate startup loan.

The entire loan is underwritten on projections at closing — there is no operating history, no historical revenue, no seasoned tax returns required. The lender is making a bet on the borrower, the business plan, the market, and the feasibility of the project. If those things are solid, the loan closes. And if the park performs the way a well-located, well-managed property should, then at the end of 3 years, the borrower ends up with a stabilized asset, no remaining prepayment penalty, and full flexibility to refinance, sell, or hold — all financed from day 1 at 10% down or less.

It is also worth noting that from a cash conservation standpoint, this may be the most efficient construction financing structure available anywhere. Every cost associated with getting the park built and ramped up — land acquisition, hard construction, soft costs, closing costs, the SBA guaranty fee, construction interest during the build period, and working capital to cover loan payments until the business reaches and moves beyond breakeven — is financed into the loan. The borrower is not writing checks during construction. They are not funding interest payments out of pocket while the park is being built. They are not scrambling for reserves to cover the first year of mortgage payments while occupancy is still climbing. All of it is in the loan. The only money that needs to come to the table is the down payment — which can be as low as 10% on the total project costs, and in the case of an expansion can be $0. From closing until the park is cash-flow positive, the borrower’s personal capital is largely untouched.

That combination — projections-based approval, construction-to-permanent structure, built-in working capital, and a short prepayment penalty that expires potentially right when the park matures — is what makes the SBA 7a uniquely well-suited for ground-up outdoor short-term lodging development in a way that no conventional construction product can match.

The 7a is a truly remarkable financial tool in the hands of a savvy lender, but there are some things about it that are not “positives.”

Negatives of SBA 7a Loans

1) The SBA Guaranty Fee

The SBA Guaranty Fee is not cheap — roughly 2.75% of the loan amount for most loans — but it is the cost of everything the program delivers. Without it, none of the benefits above exist. It is essentially a mortgage insurance premium by another name, and like mortgage insurance, it is what allows lenders to approve transactions they otherwise wouldn’t. The fee is financed into the loan, which is consistent with the program’s broader goal of minimizing out-of-pocket costs for the borrower.

2) The (Possible) Floating Rate

The floating rate is neither inherently good nor bad — it depends on where the economy is heading and how long the borrower plans to hold the loan. Borrowers who have carried floating rate loans during periods when the Prime Rate was stable or declining have often fared better than those locked into fixed rates, sometimes significantly so, but the reverse is equally true. Borrowers who held floating rate loans through 2022 and 2023 experienced firsthand how quickly a floating rate can rise.

The saving grace is transparency — rate movements are rarely sudden or unexpected. The Federal Reserve typically telegraphs its intentions well in advance, giving borrowers time to plan, hedge, or possibly refinance before a rising rate environment materially affects their payment.

3) Personal Guarantee and Collateral

SBA loans require a personal guarantee from all owners with 20% or more ownership, which gives lenders the right to place liens on real property owned by the guarantors. In practice this is applied more selectively than many borrowers expect. Business assets are standard. On personal real estate, most lenders will not place a lien on a primary residence if existing mortgages and home equity lines of credit leave less than 25% equity — there is simply not enough unencumbered equity to make it meaningful collateral. Personal vehicles, household assets, and similar items are not the type of collateral lenders look for, and the collateral conversation is more nuanced than the general reputation of SBA loans might suggest.

4) Life Insurance

Life insurance is another item that comes up frequently in SBA lending, but not usually until after a loan has been approved. It is usually requested by lenders for closely held businesses where the operation depends heavily on one or two key individuals. The requirement is lender-specific and deal-specific — not a universal program rule — but many SBA lenders will require some amount of coverage on the primary owner as a condition of approval, with the lender named as a collateral assignee on the policy.

The amount required varies by lender and transaction. In some cases existing policies can be assigned rather than requiring new coverage. For borrowers who do not carry existing life insurance, there are SBA-focused insurance providers who are quick and generally very affordable.

It is also worth noting that many of the items above are temporary by nature. When and if the loan is refinanced — which many SBA 7a borrowers do within three to five years once the park has stabilized and equity has been built – the guaranty fee has already been absorbed into the loan, any liens placed on real property are released, life insurance requirements tied to the SBA loan are no longer in force, and the floating rate is replaced by whatever fixed or index-based rate the new loan carries. In that context, the negatives of the 7a are very definitely real, but best understood as the short-to-medium term cost of access to a program that makes the transaction possible in the first place.

SBA 7a Prepayment Penalty — Why It Matters for RV Park Financing

The SBA 7a has a 3-year prepayment penalty that lenders are not allowed to change or extend. The penalty is 5% in year one, 3% in year two, and 1% in year three. After year three, there is no prepayment penalty at all. Borrowers are also allowed to pay down up to 25% of the principal balance in each of the first three years without triggering the penalty.

This matters more for RV park financing than many other property types because of construction and ramp-up timelines. A ground-up RV park typically takes 6 to 12 months to build (maybe 18 months for a more complex park), then another 12 to 24 months to reach stabilized occupancy. By the time the park is stable and fully cash-flowing — roughly 30 to 36 months from closing — the prepayment penalty is at 1% or already gone. At that point, there is a stabilized asset with real equity, the ability to refinance into better conventional terms, and a very short window of remaining penalty.

SBA RV Park Credit Requirements — Credit Score and Financial Qualifications

There is no SBA minimum credit score for regular SBA 7a loans above $350,000 — that is an SBA rule, not an individual lender guideline. Lenders set their own standards, and ideally, most want to see scores in the mid 600s for most transactions, but every loan is underwritten on its own merits. Borrowers with lower scores are absolutely eligible under the right circumstances and with the right explanation(s).

More important than the score is the story behind it and negative items on a credit report. Lenders want to understand what happened, when it happened, and whether it was an isolated event or a pattern. Medical bills, a divorce, a prior business that failed during COVID — these are very different from a decade of chronic mismanagement. Borrowers with past bankruptcies are eligible for SBA financing if enough time has passed since the discharge, the explanation is credible, and the federal government did not take a loss in the proceeding.

Beyond credit, lenders are evaluating:

• Debt service coverage ratio (DSCR) — net operating income should ideally be 1.15x annual loan payments or better
• Post-closing liquidity — cash remaining after down payment and closing costs
• Stable outside income — helpful, especially for borrowers who are borrowing their down payment or have limited reserves
• Experience — definitely NOT required, but a relevant background in hospitality, property management, or outdoor recreation carries real weight

Workforce Housing RV Parks — SBA Eligibility for Monthly and Contractor Parks

Parks that serve workforce housing guests — construction crews, pipeline workers, traveling healthcare professionals, data center crews — are SBA-eligible with experienced lenders because those guests are staying short-term for a specific project or rotation, not as permanent residents.

The critical distinction is the nature of the stay: project-based short-term occupancy is very different from a long-term residential arrangement, even if the physical structure looks the same. A park serving traveling nurses in 13-week contracts is operating a transient lodging business. A park full of residents who have lived there for years is a different animal entirely.

Parks with a mix — some transient recreational guests plus workforce occupants — can often get well above 50% short-term revenue without difficulty. And some lenders will count monthly guests on month-to-month registrations as qualifying short-term stays, which opens up additional possibilities for parks that run year-round on a monthly basis.

SBA 504 Loans for RV Parks — How the Program Works

The SBA 504 is a different structure than the 7a — it splits the financing between a conventional first mortgage (typically 50%–60% of project costs) and an SBA-backed second mortgage from an SBA-approved second mortgage lender (30%–40%), with the borrower contributing 15%–20% down for RV parks. The second mortgage carries a fixed rate for the full term, typically 20 to 25 years. The first mortgage is a separate negotiation with the conventional lender and can be floating, fixed for a short term, or fixed for the full term depending on the lender — it is not automatically a long-term fixed rate.

For most RV park acquisitions and construction projects, the SBA 7a is the more practical and flexible option — it’s a single loan, it covers working capital, and it can finance goodwill as part of a business acquisition. The 504 tends to come into play in two situations: when the project size exceeds what the 7a can handle on its own, or when a borrower has more equity and wants the certainty of a fixed rate on the SBA portion of the debt for a property they plan to hold long term. It is a less flexible program — it cannot finance working capital or goodwill, it involves two separate lenders and two separate underwriting processes and an actual approval directly from SBA, and it takes longer to close. But for larger acquisitions or construction projects where the 7a ceiling is a constraint, the 504 is often the right solution.

Green 504 and More Eligibility

The Green 504 is worth knowing about if you are looking at a larger deal or if you have already used significant SBA capacity. If your park generates more than 15% of its energy needs from renewable sources — solar, wind, geothermal, biomass, or hydropower — the Green 504 program dramatically expands how much SBA financing you can access. Under the current Green 504 rules, you can have up to $16.5 million in SBA 504 2nd mortgage loans at one time, and the maximum second mortgage is $5.5 million. Because the 504 only guarantees the second mortgage (which finances 30%–40% of the project), $5.5 million in second mortgage capacity can translate to $13 million to $18 million in total financing per project depending on your down payment/equity — and you can do multiple projects, each with a $5.5 million second mortgage.

For borrowers contributing land equity toward a 504 down payment: the current appraised value counts only if the land has been owned for more than two years. Land owned for less than two years counts at original cost, not appraised value — a meaningful distinction if the land has appreciated significantly.

For operators with renewable energy on site, the Green 504 program can support a portfolio of parks with total financing in excess of $45 million, because the program allows borrowers to have multiple projects simultaneously. For a serious portfolio builder financing five to ten parks of varying sizes, the Green 504 creates a path to institutional-scale financing that is difficult to achieve without the SBA.

USDA Loans for Rural RV Parks — When They Work and When They Don’t

The USDA Business & Industry loan program is available for rural RV parks and offers 30-year amortization — five years longer than SBA programs — which is its primary appeal. Rates are negotiated between borrower and lender, sometimes tied to Prime plus a spread, but more often to more stable indexes – and they can be fixed or variable. For a borrower planning a very long hold on a well-improved rural property, the extended amortization reduces monthly payments compared to a 25-year SBA loan.

The practical challenges are significant, however, and worth understanding before pursuing this path.

The collateral test is the biggest obstacle for most RV parks. USDA requires that discounted collateral value equal or exceed the loan amount — and lenders apply aggressive discounting to land-heavy assets. For a typical rural RV park where most of the value is in acreage with limited permanent structures, the discounted collateral often falls short of what’s needed to cover the loan. This is less of a problem for well-improved parks with substantial infrastructure, cabins, or amenity buildings — and more of a problem for simpler land-heavy properties.

Down payment requirements are higher than SBA. Existing businesses need 20% equity at closing. New businesses require 25%. Construction projects require 25% as well.

Timeline is the other major consideration — and unlike SBA, it is largely outside the lender’s control. Every USDA B&I loan requires approval from both the lender and the state USDA Rural Development office, two separate underwriting processes that run on different schedules. A closing timeline of 4 to 9 months is realistic, and longer is not unusual depending on the state office’s current workload. For a purchase with a motivated seller and a normal contract timeline, this can be problematic.

There is also an ongoing annual fee — in addition to an upfront guarantee fee of approximately 3% of the guaranteed amount, USDA charges an annual retention fee of 0.5% of the outstanding guaranteed balance for the life of the loan. That ongoing cost adds up meaningfully over a 30-year term compared to the SBA’s one-time guaranty fee structure.

For most RV park borrowers the SBA 7a is the stronger program — lower down payment, faster closing, no annual fee, and more flexible collateral standards. USDA B&I is worth a conversation for borrowers who have 20% or more equity, are buying a well-improved rural property they intend to hold for the very long term, and are not working against a time-sensitive closing deadline. For a refinance situation where timeline pressure is minimal, it can also be worth exploring.

Texas Conventional Financing for Long-Term Stay and Affordable Housing Parks

If the property is in Texas, there is a specialized conventional program for parks that serve long-term or affordable-housing guests and that qualify as low-income properties or are located in low-income census tracts. Loans up to $2 million with 10%–15% down. This program is also available for mobile home parks meeting the same criteria. Call us at 1-800-414-5285 for details on whether a specific property qualifies.

Conventional RV Park Loans — When They Make Sense

Conventional RV park loans (not backed by a government guarantee) are available from banks and specialty lenders that understand outdoor lodging. They typically require 25%–30% down, strong historical cash flow, relevant industry experience, and good credit. For borrowers who meet those requirements, conventional financing can offer better rates, simpler documentation, and fewer program restrictions than SBA.

The lenders worth working with on a conventional deal are specialists who have underwritten enough of these properties to know how to value rural land, evaluate seasonal cash flow, and get comfortable with less-standard collateral.

For borrowers who qualify for both SBA and conventional financing, the decision usually comes down to two things: how much capital they want to put down (or conserve), how long they plan to hold the asset and whether or not the project requires the use of the SBA’s flexible guidelines mentioned throughout this page.

Conventional lending is generally better for experienced operators with significant equity who want lower long-term cost. SBA is generally better for borrowers who want to preserve capital, need more flexibility on underwriting, or are doing a transaction — like ground-up construction or a first-time acquisition — where conventional lenders aren’t interested.

SBA Guaranty Fee — What Does It Cost?

SBA 7a loans carry a one-time “guaranty fee” — typically approx. 2.75% of the loan amount. The fee is financed into the loan itself, so it doesn’t come out of your pocket at closing. There are no ongoing monthly mortgage insurance-type payments.

RV Park Loan Examples — What Do the Numbers Actually Look Like?

Most borrowers want to see real deal structures before they pick up the phone. The two examples below cover the most common scenarios: a straightforward acquisition and a ground-up construction project. Both are based on actual deal parameters.

Turnaround Deals and One Solid Year of Cash Flow — Buying a Distressed or Underperforming RV Park

Purchasing a park that has poor historical financials due to mismanagement, absentee ownership, deferred maintenance, or a recent ownership transition is a distinct scenario from a standard acquisition. These deals are absolutely possible with the right lender and the right borrower — but they require a different approach than a straightforward purchase of a well-run park.

One thing most borrowers don’t know: the SBA rules allow a lender to qualify a transaction on a single solid year of cash flow rather than requiring two or three years of strong tax returns. This is not a workaround or an exception — it is how the program is designed to work, and it opens the door for deals that would otherwise look unfundable on paper.

A recent transaction we were able to get funded illustrates exactly how this works. The seller’s 2023 and 2024 tax returns showed debt service coverage well below the SBA minimum at .51x — a level that is generally a non-starter. The 2025 return, however, showed a very healthy debt service coverage ratio of 1.53 — a clear and dramatic improvement that reflected what was actually happening at the property. One of our most capable and competitively priced lenders was willing to look at the full picture. They could see that the prior years likely did not reflect the true performance of the business. They did their due diligence, evaluated the borrower carefully, liked what they saw, and approved the loan. The borrower, who was purchasing her first campground, closed on the transaction.

It is doubtful that a generalist SBA lender would have been able to get comfortable with the transaction. It closed because the right lender was involved from the start — one experienced enough to know that one strong year of verifiable cash flow, combined with a borrower they believed in, was enough to make a sound credit decision.

Sometimes, lenders need to be willing to underwrite partially or fully on projections and recent performance rather than a multi-year average of historical tax returns. Not every lender will do this, and many won’t consider it. The ones who will are generally the same experienced SBA lenders who are comfortable with construction and startup deals — lenders who know how to evaluate a business and a borrower rather than just a tax return.

The business plan and financial assumptions need to be logical and make sense. Lenders will take a very detailed view of the projections — what occupancy trends show, what rate improvements are planned, what expense adjustments are realistic — and they will want those assumptions well-supported.

Post-closing liquidity matters here more than in a standard acquisition. Entering into a turnaround situation — where the near-term future is somewhat less predictable by nature — without a meaningful personal capital cushion for unforeseen events is something lenders will weigh carefully. The more liquidity a borrower has going in, the more comfortable a lender can get with the uncertainty.

Lender selection is critical. Most SBA lenders are not comfortable with turnaround deals for most types of businesses, and will decline rather than work through the complexity. For stronger borrowers, a turnaround can often be done with a lender who is selective about the deals they take on. For borrowers with a less-than-perfect overall profile, it can still get done — with a lender who prices for more risk. Either way, getting to the right lender from the start is what determines whether a viable deal gets funded or dies in underwriting.

The Most Common Reasons RV Park Loans Don’t Close

If a lender issues a term sheet that sounds reasonable and then denies the loan without much explanation — or without ever signaling that the transaction was considered marginal — there is often a simple explanation: the wrong lender was involved from the start.

Lender selection is a crucial decision in any SBA transaction. It determines the rate and terms offered, the timeline from application to closing, whether the deal is actually approvable at the requested structure, and how much down payment or equity is required. Two lenders looking at the identical transaction can reach completely different conclusions — not because the deal changed, but because their experience, appetite, and internal guidelines differ. A lender who has never financed an RV park may simply underwrite it like a conventional commercial real estate deal and decline. A lender who has closed dozens of them will recognize what they’re looking at and approve a good loan.

Many declined SBA loans are not bad deals. It may just be a good deal submitted to the wrong lender.

How to Find the Right SBA RV Park Lender

This is the most important practical question on this page, and the answer is blunt: most SBA lenders should not be financing RV parks.

RV parks are still a relatively immature lending sector for the SBA community. Most lenders have never financed a campground, glamping resort, or outdoor short-term lodging property. They are uncomfortable with rural land-heavy collateral, unfamiliar with how “50% short-term revenue” can actually be defined within the context of what the SBA rules actually allow, and uncertain about how to evaluate a business plan for a seasonal hospitality operation.

One underwriting variable that surprises some borrowers is how differently lenders approach collateral on rural land-heavy properties. The SBA does not require full collateral coverage as a condition of approval — the program is designed to allow lenders to make loans they otherwise couldn’t based on collateral alone. But individual lenders vary significantly in how they apply this. Some lenders are comfortable approving a loan where the discounted collateral value falls short of the loan amount, as long as the borrower’s cash flow, liquidity, and overall credit profile are strong. Others apply more conservative internal discounting to rural acreage — treating it as harder to sell in a default scenario — and will require additional collateral or a larger down payment as a result. For RV parks, where the majority of the value is often in land rather than structures, this lender-by-lender variation can be the difference between an approval and a decline for the same transaction. It is one of the less-discussed reasons why lender selection matters so much for this property type.

The lenders who do this well might see 50 to 100 of these transactions per year. They know what reasonable occupancy ramp-up assumptions look like. They know how to structure construction interest reserves. They also may offer meaningfully better terms — lower spreads over Prime, more flexibility on structure — because they understand the risk profile of the asset.

Green Commercial Capital actively structures SBA RV park transactions across the country — with no particular concentration. We assist borrowers in all corners of the U.S. We see a lot of transactions in the Southeast: Georgia, Tennessee, Florida, North Carolina, and South Carolina, as well as Western and Southwestern markets including Texas, Arizona, Colorado, and California and everywhere else across the country where borrowers are seeing opportunities. Lender relationships, market familiarity, and deal volume vary by region and transaction type. Our goal is to match each transaction with the right lender for the situation — not just any lender willing to take the file.

How Long Does an SBA RV Park Loan Take to Close?

Timeline is one of the most common questions and one of the most variable answers in SBA lending. The honest range for an RV park acquisition is 60 to 90 days for a 7a, 90 to 120 for a 504 from complete application to closing, with construction loans typically running 60 to 120 days. Approval for a 7a is typically just a few weeks. Here is what drives that variance:

Lender type matters more than anything else. Experienced SBA lenders can approve and close loans without submitting them to the SBA for a separate review. Less experienced lenders must get SBA approval, which adds 2 to 6 weeks. For any RV park deal, working with an experienced lender is strongly advisable.

Appraisal is usually the longest single item. A commercial appraisal for an RV park typically takes 3 to 4 weeks from engagement to delivery.

Environmental reports run parallel to appraisal. A Phase I environmental site assessment takes 1 to 3 weeks. Most lenders order the appraisal and Phase I simultaneously to avoid sequential delays. A Phase II investigation is rare, but it is required when the Phase I identifies Recognized Environmental Conditions — specific indicators that contamination may be present. For RV parks the most common triggers are a prior use as a gas station or agricultural chemical storage operation, the presence of underground storage tanks, evidence of dumping or landfill activity on the property, or contamination issues on an adjacent property. When a Phase II is required, add 4 to 8 weeks and meaningful additional cost to the timeline — and if contamination is confirmed, remediation requirements can extend the process significantly further and in serious cases can affect whether the transaction is financeable at all.

Construction loans require additional steps. In addition to the appraisal and environmental work, construction loans require a construction budget review, contractor qualification, plan and spec review, and for a few lenders — a feasibility study. These add 2 to 4 weeks to the timeline. After closing, construction draws are typically disbursed monthly based on inspections and lien waivers.

The borrower controls more of the timeline than they realize. The most common cause of a 90-day close when 60 days was possible is an incomplete application — missing tax returns, disorganized financials, slow responses to lender questions, or title issues that surface late. Having a complete, organized loan package ready before approaching the lender takes weeks off the process.

A realistic working timeline for a straightforward acquisition: 2 to 3 days from receipt of all documentation for term sheet/loan proposal, 2 weeks for loan approval/commitment, 4 weeks for appraisal and environmental (running simultaneously), 3 days for appraisal review, 1 to 2 weeks for closing preparation. That gets to roughly 8 weeks from complete application to close for a clean transaction with a capable lender.

FYI: the appraisal and Phase 1 Environmental can be ordered early (at term sheet) if necessary.

Frequently Asked Questions About RV Park Financing

RV Park Financing — Related Posts and Resources

This page is the overview. For specific topics, the Green Commercial Capital blog covers each in much greater depth:

• SBA RV Park & Campground Construction Loans — how ground-up construction loans actually work, including a real deal scenario, how working capital reserves get financed in, and what makes a lender willing to do a startup with no operating history.
• How Lenders Evaluate RV Park Business Plans and Financial Projections — what your projections need to show, what DSCR target lenders are looking for, and the most common reasons projections get discounted by underwriters.
• SBA Loans for Workforce Housing RV Parks and Monthly Parks — the eligibility rules, underwriting approach, and lender selection considerations for parks that serve short-term workforce guests or monthly occupants.
• Full Standby Seller Notes: How They Work Under the 2025 Rules — the complete explanation of the 5% + 5% structure, what “full standby” actually means, and what changed with the June 2025 rule update.
• How to Finance an RV Park with No Money Down — the full breakdown of both the expansion path ($0 down for existing operators) and the creative financing path for first-time buyers.
• Green 504 Loan Program — how going green dramatically expands your SBA eligibility and why this matters for larger parks or portfolio builders.