RV Park and Campground Financing

RV Park and Campground Financing: What Brokers Need to Know

RV park and campground financing sits at the intersection of real estate, hospitality, and small business lending, which means brokers have more capital options than most property types but also more decisions to make. A well-structured RV park and campground financing package leans on the SBA for owner-operated deals, USDA B&I for rural properties, CMBS or life company debt for institutional-quality parks, and bridge or bank capital for value-add and transitional situations. This guide covers the lender landscape, typical terms across each execution, underwriting focus areas, and how to position outdoor hospitality deals so they close.

Outdoor hospitality has been one of the strongest travel and leisure segments since 2020. Occupancy at KOA parks, private campgrounds, and glamping resorts pushed transient rates higher and drew institutional capital into the sector. Sun Communities acquired Park Holidays and pushed further into RV resorts. Blackstone-backed and other private equity buyers built portfolios. Independent operators are still the backbone of the industry, but the financing conversation is now more sophisticated than it was ten years ago.

The RV Park and Campground Financing Landscape

Outdoor hospitality properties get financed through five main capital paths. Which path fits depends on ownership structure, deal size, borrower experience, and property condition.

SBA 504 and SBA 7(a). The workhorses for owner-operated RV parks and campgrounds. SBA 504 covers real estate and long-life equipment with 10% borrower equity for existing businesses and 15% for special-use properties or new operators. SBA 7(a) handles smaller deals, business acquisitions, working capital, and situations where soft costs dominate. Both programs reach loans well suited to independent RV park owners and multi-unit franchisees.

USDA Business & Industry (B&I) guaranteed loans. For RV parks and campgrounds in rural areas (populations under 50,000, with specific USDA eligibility maps). B&I offers up to 80% LTV, terms up to 30 years on real estate, and can go significantly larger than the SBA cap. USDA is often overlooked for outdoor hospitality but fits the rural profile of most campgrounds well. Our USDA loan for rural hotel and motel guide covers B&I mechanics in more depth, and the same framework applies to RV parks and campgrounds.

Conventional bank and credit union financing. Regional and community banks fund stabilized RV parks with strong operators. Terms are typically 65% to 75% LTV, 20 to 25 year amortization, 5 to 10 year fixed periods, and DSCR minimums around 1.25x to 1.35x. Local bank relationships matter because many banks want familiarity with the market and property.

CMBS. Available for institutional-quality outdoor hospitality resorts, generally $5 million and up. CMBS execution requires stabilized cash flow, professional management, and property characteristics that support a non-recourse fixed-rate loan. Franchised parks (KOA, Sun Outdoors) and RV resorts with strong amenity packages fit better than basic transient parks. Our broker guide to CMBS loans details underwriting and process.

Bridge and debt fund capital. For value-add campground repositioning, distressed acquisitions, or pre-stabilization takeouts. Bridge lenders will fund 65% to 75% of cost at SOFR plus 400 to 700 basis points for 18 to 36 months with the exit sized to an SBA, CMBS, or bank permanent takeout. See the bridge loans broker guide for structuring guidance.

SBA 504 for RV Park and Campground Financing

SBA 504 is the most common execution for owner-operated RV park acquisitions and refinances. The structure works well for outdoor hospitality because it captures real estate, buildings, and long-life improvements (utility infrastructure, roads, sewer, water systems) in a single financing.

The standard SBA 504 stack:

Special-use classification matters for RV parks. Because campgrounds have limited alternative use, some SBA lenders treat them as special-purpose properties, which bumps the borrower equity requirement to 15%. Others treat traditional RV parks and campgrounds as general-purpose hospitality, keeping the 10% equity requirement. This is worth confirming with the lender early because it changes the deal math significantly. Franchised parks and RV resorts with cabin rentals, park models, and diversified income streams are more likely to get the general-purpose treatment.

SBA 504 works well for:

• Existing owner-operator buying an established RV park or campground
• Refinance-and-improve deals where the borrower adds sites, upgrades utilities, or builds amenities
• Franchise conversions (independent park joining KOA or Jellystone)
• Ground-up development combined with a bank construction loan and CDC take-out

Use an SBA 504 payment calculator to model bank first mortgage plus CDC debenture combined debt service. For a $3 million project at 90% financing, the split between the two loans meaningfully affects overall payment because the CDC portion is fixed for 25 years and the bank portion often floats or resets earlier.

SBA 7(a) for RV Park and Campground Financing

SBA 7(a) is the second SBA path for outdoor hospitality. Compared to 504, the 7(a) advantage is flexibility. Working capital, business acquisition (including goodwill), equipment, and real estate can all sit inside a single 7(a) loan. The tradeoff is that pricing is usually variable (Prime plus a spread) rather than fixed.

7(a) fits well for:

• Business acquisition of an existing RV park where goodwill is a meaningful piece of the purchase price
• Smaller deals below $2 million where 504 origination costs are less attractive
• Deals that need working capital or startup reserves alongside the real estate
• Situations where the borrower wants a single loan structure instead of the two-loan 504 stack

Preferred SBA 7(a) lenders for outdoor hospitality include Live Oak Bank, Byline, Celtic, Newtek, and several regional banks with hospitality specialties. Live Oak in particular has publicly focused on RV park and campground lending and understands the operating model in depth. Matching the deal to a lender with active outdoor hospitality experience saves significant time.

USDA B&I for Rural RV Parks and Campgrounds

USDA Business & Industry guaranteed loans are underused in outdoor hospitality. Most private campgrounds and RV parks sit in rural areas because that is where the demand fundamentals (state parks, lakes, national forests, scenic drives) exist. USDA B&I is designed for exactly this profile.

Key USDA B&I terms for RV park and campground financing:

USDA B&I is worth exploring anytime an SBA deal is too small for CMBS, too rural for a strong bank match, or when the borrower needs a loan size above the SBA cap. Timeline runs longer than SBA (90 to 120 days is typical) because of the agency guarantee process, so factor that into deal expectations.

CMBS for Institutional Outdoor Hospitality

CMBS financing on RV parks and campgrounds became more available as the sector institutionalized. Sun Outdoors, KOA Resorts, and larger franchise operators can support CMBS execution because they generate the stabilized cash flow, professional management, and property quality that securitized lenders require.

Typical CMBS terms for outdoor hospitality:

CMBS underwriting for outdoor hospitality treats these properties similar to select-service hotels: revenue is transient by nature, seasonality matters, and property condition drives valuation. The CMBS loan for hotel and hospitality guide covers hotel-specific mechanics that translate to RV resorts. Key differences: RV parks have lower operating expense ratios than hotels (no housekeeping on transient sites, minimal food and beverage), which pushes debt yield higher for a given NOI.

What Lenders Underwrite on RV Park and Campground Deals

Regardless of execution, lenders focus on the same core areas when underwriting outdoor hospitality:

Revenue mix and site inventory. Lenders want to see the site count broken down by type (transient RV, seasonal RV, annual RV, park model rentals, cabin rentals, tent sites). Diversified income (transient plus seasonals plus rentals plus store plus laundry plus activities) reduces concentration risk. A pure transient park in a seasonal market carries more risk than a park with a stable base of seasonal contracts.

Operating history and normalized NOI. Three years of profit and loss statements, current rent rolls or occupancy reports, and property tax returns. Lenders back into a normalized NOI by adjusting for owner add-backs, non-recurring items, and market-level operating expenses. Use an NOI calculator to model NOI cleanly across the operating expense categories that matter for campgrounds: property taxes, insurance, utilities (often owner-paid for water and sewer), management, payroll, marketing, licensing, maintenance, propane, and replacement reserves.

Occupancy and seasonality. Monthly occupancy by site type over three years. Lenders want to see whether peak season fills the park, what the shoulder season looks like, and whether the off-season is a fixed-cost drag or a modest revenue producer. Parks with strong seasonal contract bases underwrite more favorably than pure transient parks in short seasons.

Franchise or independent status. Franchised parks get slightly better lender reception because of brand-driven bookings and franchisor training. SBA lenders often reference the SBA Franchise Directory for approved franchise identifiers. Independent parks are financeable but require a stronger operator story and demonstrated marketing capability (website, online reviews, direct booking systems).

Property condition and infrastructure. Utility capacity is the single most important physical factor for RV parks. Water supply (well or municipal), sewer capacity (septic, lagoon, or municipal), electric service to sites (30-amp vs 50-amp vs both), and Wi-Fi infrastructure all affect valuation and lender comfort. Parks with aging utility infrastructure need capital reserves or a repositioning plan.

Operator experience. Lenders want operators who have run outdoor hospitality before or have relevant hospitality experience (hotel, campground consulting, franchise operations). First-time operators can qualify but usually pay more equity or accept tighter covenants. Multi-unit operators command the best terms.

Market drivers. Proximity to demand generators (national parks, state parks, lakes, beaches, ski areas, major highways) affects underwriting. Lenders look at the local tourism economy, competing parks, and any pending regulatory or zoning changes that could affect operations.

Deal Profiles That Fit Well

Here are three RV park and campground scenarios and how brokers typically place them:

Scenario 1: Owner-operator buying an existing 120-site KOA franchise. Purchase price $3.5 million with $200,000 of working capital needed. Buyer has 8 years of hospitality operations experience. This is a textbook SBA 504 deal, potentially combined with a small SBA 7(a) for working capital. Franchise brand helps with lender reception. Target 10% down payment (SBA 504 general-purpose classification), 25-year CDC debenture, and a 25-year bank first mortgage. Total monthly debt service modeled through the SBA 504 calculator.

Scenario 2: Rural 200-site campground in a lake community. Independent park, 60% seasonal / 40% transient. Purchase price $4.5 million. Property is in a town of 12,000, which qualifies for USDA B&I. Options: (1) SBA 504 with 10% or 15% down depending on lender classification, or (2) USDA B&I with 80% LTV and up to 30-year real estate term. USDA execution likely wins on total cost because of the longer amortization and no SBA guarantee fee structure. Timeline runs longer than SBA. Deal fits a USDA-approved lender with outdoor hospitality experience.

Scenario 3: Value-add repositioning of a 300-site RV resort. Current occupancy is 55% because of aging utilities and no cabin inventory. Acquisition price $6 million with $2 million of planned improvements (utility upgrades, 20 cabin rentals, pool renovation). Total project $8 million. This is a bridge-to-perm deal. Bridge lender funds 70% of the $8 million project ($5.6 million) at SOFR plus 500 basis points for 24 months. Takeout is an SBA 504 refinance at stabilization once NOI supports the debt. Alternatively, a CMBS takeout if the repositioned property clears the $5 million loan size and stabilizes at institutional occupancy.

When RV Park and Campground Financing Gets Hard

Not every campground deal fits neatly into a lender bucket. These situations require more work or a different approach:

Pure transient parks in short seasons. A park that operates 4 months of the year with no seasonal contract base is a hard sell to most lenders. Consider parks with year-round demand, meaningful seasonal or annual contracts, or a repositioning plan that adds off-season revenue.

Small deals under $500,000. Below SBA 7(a) micro-loan territory, options thin out. Community banks and credit unions with local relationships are usually the answer, sometimes with seller financing bridging the gap.

Unusual property structures. Ground leases, parks operating on public land (national forest, state park concessions), and manufactured home / RV park hybrids create underwriting complications. Each requires a lender familiar with the specific structure.

Environmental issues. Campgrounds with historical fuel tanks, dumping stations, or nearby industrial land use trigger Phase II environmental scrutiny. Life company and CMBS lenders are especially conservative here. Bank and SBA execution have more flexibility with mitigation plans.

Failed lease-up or brand transitions. Newly built or newly rebranded parks without operating history need bridge or specialty financing until they stabilize enough for permanent debt.

Positioning RV Park and Campground Deals for Approval

When packaging an outdoor hospitality property for lender review, focus on what these lenders care about most:

Lead with the operating story. A one-page executive summary covering purchase price, sources and uses, occupancy trend, revenue mix, operator experience, and post-close plan. Lenders read the first page hardest.

Detail the site inventory and revenue mix. Provide a site inventory sheet: pull-through vs back-in sites, 30-amp vs 50-amp, full hookup vs water and electric, tent sites, park models, cabins. Show rate structure by site type and season. Show the mix of transient, seasonal, annual, and rental revenue.

Present clean financials with owner add-backs. Three years of P&L, current rent roll or occupancy report, and a clean owner add-back schedule. Lenders will normalize the numbers themselves, but they need clean starting inputs.

Document infrastructure condition. Property condition report, recent capital expenditures, and any pending utility upgrades. Photos of dump stations, electrical pedestals, and shower houses matter more than glamour shots of the sunset over the lake.

Explain the market position. Proximity to demand generators, competitive set, seasonal calendar, and any local events driving occupancy. If the park is franchised, include franchise disclosure documents and any franchisor territory data.

Package the sponsor cleanly. Personal financial statements, resumes, ownership history for related businesses, and a business plan for the post-close operating strategy. Multi-unit operators should show performance data across the portfolio.

The Broker's Angle

Outdoor hospitality deals reward brokers who understand the operating model. Because the sector spans SBA, USDA, conventional bank, CMBS, and bridge capital, matching the deal to the right lender pool is where the value gets created. Brokers who cold-submit RV park deals to generic SBA lenders lose time and miss better executions.

Compensation on RV park and campground deals typically follows standard commercial mortgage broker fee ranges: 1.00% to 2.00% on SBA execution (with SBA fee caps depending on program), 0.50% to 1.00% on CMBS, and negotiated fees on USDA and bridge. See the commercial mortgage broker fee structures guide for detail on how these are typically structured.

Using a platform like Janover Pro to filter lenders by outdoor hospitality experience, loan size, and geographic footprint saves the shotgun-submission time and gets deals in front of lenders actually quoting the sector. That matters more in RV parks than in most property types because the number of truly experienced outdoor hospitality lenders is small.

Rate and Term Context

RV park and campground financing pricing depends heavily on execution:

SBA 504: CDC debenture rates are fixed at the time of debenture sale and set monthly by SBA. Bank first mortgage rates are conventional and vary by lender. Combined effective rates typically run in a narrower band than the individual pieces.

SBA 7(a): Variable rate at Prime plus a spread (typically 2.00% to 2.75% for real estate deals, higher for working capital or business acquisition components). Fixed-rate 7(a) is available but less common.

USDA B&I: Negotiated between lender and borrower. Often priced similar to conventional bank commercial mortgages, with the guarantee giving the lender comfort to extend longer terms and higher LTV.

Conventional bank: Typically 5-year fixed with 25-year amortization, or floating rate over SOFR. Pricing tracks the bank's cost of funds plus spread.

CMBS: Priced as a spread over the comparable Treasury benchmark, generally in the 250 to 400 basis point range for outdoor hospitality depending on property quality, sponsor, and market conditions.

Bridge: Priced as SOFR plus 400 to 700 basis points, with 1% to 2% origination fees, for 18 to 36 month terms. Prepayment is typically open after a short lockout.

Rate benchmarks change frequently. Confirm current pricing with active lenders before quoting terms to a client.

Frequently Asked Questions