How to Finance an RV Park or Campground with an SBA Loan: 2026 Guide

Outdoor hospitality is one of the fastest-growing segments in the travel and leisure industry. RV parks, campgrounds, and glamping resorts have evolved from bare-bones roadside stopovers into highly profitable, experience-driven destinations that attract a broad demographic of travelers. The industry has been growing at over 15% annually since 2020, and occupancy rates at well-managed parks consistently exceed 70% year-round in favorable climates and 50-60% in seasonal markets. For entrepreneurs looking to enter this space, SBA loans offer one of the most compelling financing pathways available.

This guide covers everything you need to know about financing an RV park, campground, or glamping resort with an SBA loan in 2026. We address the critical eligibility rules, seasonal cash flow considerations, deal structures, and the specific underwriting nuances that make outdoor hospitality properties different from other commercial real estate.

The RV Park and Campground Industry Boom

The outdoor hospitality industry has undergone a fundamental transformation over the past six years. What was once considered a niche segment dominated by retirees in Class A motorhomes has become a mainstream travel category attracting millennials, families, remote workers, and luxury travelers. Several converging trends are driving this growth.

First, the pandemic permanently shifted consumer travel preferences toward outdoor, nature-based experiences. Surveys consistently show that over 60% of travelers now prefer outdoor accommodations at least some of the time, compared to less than 30% pre-2020. This preference shift has proven durable, not a temporary reaction to health concerns.

Second, RV ownership has reached all-time highs. The RV Industry Association reports over 11.5 million registered RV-owning households in the United States in 2026, up from 9 million in 2019. Every one of those households needs places to park, camp, and connect, creating sustained and growing demand for RV park sites.

Third, the rise of glamping and experiential camping has opened the outdoor hospitality market to travelers who would never have considered a traditional campground. Glamping accommodations including safari tents, treehouses, yurts, and tiny cabins command nightly rates of $150 to $500 or more, comparable to boutique hotel pricing, while operating with significantly lower overhead per unit.

SBA 504 vs. 7(a) for RV Park Acquisition

For RV park and campground acquisitions, the SBA 504 is typically the better choice for properties priced above $2 million because of the below-market fixed rate on the CDC debenture and the 25-year repayment term that keeps monthly payments manageable during the shoulder and off-seasons. The SBA 7(a) is preferred for smaller deals or situations where the borrower needs to bundle working capital for immediate improvements, seasonal operating reserves, or equipment purchases into a single loan.

The 50% Short-Term Stay Revenue Rule (Critical for SBA Eligibility)

This is the single most important eligibility factor for SBA financing of RV parks and campgrounds, and it trips up more borrowers than any other requirement. The SBA requires that at least 50% of the park's gross revenue must come from short-term stays, defined as stays of 30 days or less. Parks that derive more than 50% of revenue from long-term residents (monthly or annual leases) are classified as residential rental properties, which are ineligible for SBA financing.

This rule exists because the SBA's mission is to support active operating businesses, not passive real estate investments. An RV park that primarily rents sites on a long-term basis functions more like a mobile home park or apartment complex than a hospitality business, and the SBA does not finance residential rental properties.

If the park you are targeting has a revenue mix that is close to the 50% line or currently leans toward long-term stays, you can present a business plan that shows how you will shift the revenue mix toward short-term occupancy after acquisition. Strategies include converting long-term sites to premium nightly sites, adding glamping units that are exclusively short-term, developing amenities that attract short-term travelers, and implementing dynamic pricing to maximize nightly revenue during peak seasons. Lenders will evaluate the feasibility of your plan, but the park's current revenue mix at the time of application must be at or above the 50% threshold, or very close to it with a credible repositioning plan.

Seller-Held Standby Notes for Minimal Down Payment Deals

One of the most powerful financing strategies for RV park acquisitions is the seller-held standby note. In this structure, the seller agrees to carry back a portion of the purchase price as a subordinate note, which counts toward the borrower's required equity injection. The note must be on "full standby," meaning no payments of principal or interest are required during the first two years of the SBA loan, and payments thereafter must not jeopardize the business's ability to service the SBA debt.

Here is how it works in practice. On a $3 million RV park acquisition with an SBA 504 loan requiring 10% equity ($300,000), the seller could carry a $150,000 standby note, reducing the borrower's required cash equity to $150,000. The seller's note is recorded as a subordinate lien behind the SBA first mortgage and CDC debenture. The SBA allows this structure as long as the note is truly on full standby and the combined debt service (SBA loan plus seller note after the standby period) is sustainable based on the property's cash flow.

This strategy is particularly common in RV park transactions because many park owners are retiring and are motivated to facilitate the sale. The seller benefits from a higher purchase price and a steady income stream from the note, while the buyer benefits from dramatically reduced upfront cash requirements.

Seasonal Cash Flow and DSCR Calculation

Seasonal cash flow is the defining financial characteristic of most RV parks and campgrounds, and it is the area where SBA underwriters pay the closest attention. Parks in northern states may generate 60-80% of their annual revenue during a four to six month season (May through October), while southern and western parks may operate year-round with more moderate seasonal fluctuations.

SBA lenders calculate the debt service coverage ratio (DSCR) using annualized net operating income, not peak-season income. The minimum DSCR required by most SBA lenders is 1.15x to 1.25x, meaning the park's annual net operating income must be at least 115% to 125% of the annual debt service.

DSCR Calculation Example

• Annual gross revenue: $1,200,000
• Operating expenses (55%): $660,000
• Net operating income: $540,000
• Annual debt service: $360,000
• DSCR: 1.50x (well above minimum)

For highly seasonal parks, lenders may also look at whether the business has sufficient cash reserves or a line of credit to cover debt service during the off-season months when revenue is minimal. Some lenders require an interest reserve or seasonal operating reserve as a condition of the loan. This is especially common for parks in regions with distinct off-seasons where three to four months may generate little to no revenue.

Glamping as a Premium Sub-Category

Glamping units represent the highest-margin revenue opportunity in the outdoor hospitality space, and the SBA treats glamping operations identically to traditional RV parks and campgrounds for loan eligibility purposes. This means you can finance glamping resort construction or add glamping units to an existing RV park using the same SBA 504 or 7(a) programs.

The financial case for glamping is compelling. A standard RV site might generate $40 to $80 per night, while a glamping tent, cabin, or treehouse at the same park can command $150 to $400 per night. The construction cost for a premium glamping unit (safari tent on a permanent platform with bathroom, climate control, and furnishings) typically ranges from $30,000 to $80,000, meaning the unit can pay for itself within one to two seasons of operation. Higher-end units like treehouses or luxury tiny cabins cost $80,000 to $200,000 but command correspondingly higher nightly rates.

From an SBA financing perspective, glamping units installed on permanent foundations or platforms with utility connections are treated as real property improvements eligible for the 25-year term under SBA 504. Portable or temporary structures may be classified as equipment and financed under the 10-year term. Work with your lender and CDC to determine the correct classification for your specific glamping units.

Expansion Financing: Adding Cabins, Amenities, and Hookups

Existing RV park owners who want to expand operations can use SBA financing for a wide range of capital improvements. The SBA 504 program is particularly well-suited for expansion projects because it was designed to finance major fixed asset purchases and improvements. Eligible expansion uses include adding new RV sites with full hookups (water, electric, sewer), constructing cabins, glamping units, or tent platforms, building or upgrading bathhouse and shower facilities, constructing recreational amenities (swimming pools, playgrounds, pavilions, activity centers), upgrading electrical infrastructure to support 50-amp and 100-amp sites, extending roads and improving internal circulation, adding camp stores, laundry facilities, or check-in offices, and installing WiFi infrastructure and technology systems.

For expansion projects at existing parks, the down payment requirement is typically 10% for experienced operators with a proven track record at the existing property. The expansion's projected revenue and expenses are modeled separately and added to the existing park's financials to demonstrate that the total property (existing plus expansion) supports the increased debt load.

Environmental Permits and Considerations

RV parks and campgrounds involve several environmental considerations that can affect both the acquisition timeline and the SBA underwriting process. Water and wastewater systems are the most significant environmental factor. Many RV parks operate private water wells and on-site septic or wastewater treatment systems rather than connecting to municipal utilities. These systems require state and local permits, regular testing, and ongoing maintenance. The SBA requires that all water and wastewater systems be in compliance with applicable regulations and in good operating condition at the time of closing.

If the park is located near wetlands, waterways, or environmentally sensitive areas, additional permits may be required for any construction or expansion work. The U.S. Army Corps of Engineers, state environmental agencies, and local conservation commissions may all have jurisdiction. Floodplain considerations are also important since many desirable campground locations are near rivers and lakes that may fall within FEMA-designated flood zones. Properties in flood zones require flood insurance, which adds to operating costs.

Case Study: $2.8M RV Park Acquisition with Glamping Expansion

A couple with 10 years of hospitality management experience identified a 65-site RV park on 28 acres near a popular national forest in the Southeast. The park was well-maintained but underperforming because the retiring owners had not invested in improvements or marketing for several years. The property was listed at $2.8 million with the following financials: $780,000 annual gross revenue, $420,000 in operating expenses, and $360,000 in net operating income.

Acquisition Deal Structure (SBA 504)

• Purchase price: $2,800,000
• Borrower equity (10%): $280,000 ($150,000 cash + $130,000 seller standby note)
• Bank first mortgage (50%): $1,400,000 at 7.25%, 25-year term
• CDC debenture (40%): $1,120,000 at 5.75% fixed, 25-year term
• Total monthly debt service: approximately $17,550
• Annual debt service: approximately $210,600
• DSCR on existing operations: 1.71x ($360,000 / $210,600)

Phase 2: Glamping Expansion (SBA 7(a), Year 2)

• Project scope: 12 safari glamping tents on permanent platforms with private bathrooms
• Total cost: $720,000 ($60,000 per unit)
• SBA 7(a) loan: $648,000 (10% equity from cash flow)
• Projected additional annual revenue: $525,600 (12 units x $200/night x 60% occupancy x 365 days)
• Projected additional NOI: $315,000 (60% margin on glamping)

After the glamping expansion, the combined property generated $1,305,600 in gross revenue and approximately $675,000 in net operating income, supporting total annual debt service of approximately $290,000 with a combined DSCR of 2.33x. The property's appraised value increased to $4.8 million, giving the owners nearly $2 million in equity appreciation within two years of acquisition. This is the power of the buy-and-improve strategy with SBA financing in the outdoor hospitality sector.

Frequently Asked Questions

RV parks, campgrounds, and glamping resorts represent one of the most exciting investment opportunities in commercial real estate today, and SBA financing makes these properties accessible to owner-operators who may not have the 30-40% equity that conventional lenders typically require. The critical factors for success are meeting the 50% short-term revenue threshold, presenting strong seasonal cash flow management, and working with an SBA lender who understands the unique characteristics of outdoor hospitality properties. Start your pre-qualification process today to explore your financing options.