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USDA Loans Available for Private RV Park Owners

January 21, 2010 by   - () 4 Comments

A little known loan program offered by the U.S. Department of Agriculture may provide funding for qualified park operators or other RV businesses located in rural areas who haven’t been able to secure financing for improvements and expansions during the recession.

The USDA’s Rural Business Guaranteed Loan Program typically provides up to $10 million in funding for rural businesses that need loans for a variety of reasons, including refinancing, repairs, modernizations, development and expansions. A fact sheet detailing the USDA loan program for the Business & Industry Guaranteed Loan program can be obtained at http://www.rurdev.usda.gov/rbs/busp/b&I_gar.htm.

“Local federally insured and regulated financial institutions are still making these loans,” Bill Garpow, executive director of the Recreational Park Trailer Industry Association (RPTIA), told park operators attending Education Day Jan. 13 at Newport Dunes Waterfront RV Resort and Marina. The event was sponsored by the California Association of RV Parks and Campgrounds (CalARVC).

“This program is good for a campground or any other rural business that is financially sound, can meet the program’s collateral requirements and has a justifiable need for the loan to make some good things happen in rural America. You can also use this kind of funding to purchase recreational park trailers for placement into a rental program. Another use might be to refinance the whole park and reduce your monthly cost of operations as a way to bring a profit back to your balance sheet. USDA is particularly interested in projects that could provide additional jobs and would conserve water or power.”

Garpow said he learned about the USDA loan program during a seminar at the National RV Trade Show at Louisville in December. And while the loan application process is more cumbersome than usual, since it involves both a bank and the USDA, he said the program is worth considering given the unwillingness of most banks to lend money right now.

“If you qualify for this type of loan, the government will guarantee up to 80% of the loan,” Garpow said, which essentially covers the bank’s risk in making the loan and may result in a better loan interest rate.

The USDA defines “rural” as an area with a population of 50,000 or less. Garpow said park operators can find out if they qualify for the rural area requirement of this program by visiting the USDA’s eligibility website and entering the address and zip-code of their business. http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.

Comments

4 Responses to “USDA Loans Available for Private RV Park Owners”

  1. Charlie Brown on January 21st, 2010 1:28 pm

    Here’s the catch. you must show that 50% or more of you business is from guest who stay one month or LESS.

    Here in Texas we have a thing called “Winter Texans” or snow birds and the SBA has decided that we are not worthy of the program

    We meet all of the issues except that we have the snow birds and cannot get a loan to expand a profitable park
    Charlie Brown

  2. Scott on September 6th, 2012 6:50 pm

    Sorry to hear about the 50% occupants for a month or less. Our focus is annual campers and would like to refinance to extend terms and fix years, but 80% are annual campers. That figures though,,, the goverment is the only ones that can build and RV park and just sit and wait for customers….

  3. LORRI SMITH on November 3rd, 2015 7:16 pm

    I AM LOOKING TO PURCHASE A MATURE RV PARK IN RURAL SW COLORADO. IT IS LOCATED AT APPROX 7,000′ ELEVATION WITH BEAUTIFUL VIEWS OF THE MOUNTAINS ALL AROUND INCLUDING MESA VERDE NATIONAL PARK. THE ENTRANCE IS DIRECTLY ACROSS FROM THE ENTRANCE TO MCPHEE LAKE. THE SECOND LARGEST LAKE IN COLORADO. HISTORICALLY THIS PARK WAS A MOBILE HOME/RV PARK. OUR INTENTION IS TO MAKE IT 100% RV PARK OR POSSIBLY PUT IN APPROX 5 CABINS THAT CAN BE RENTED OUT ON A DAILY/WEEKLY BASIS. THE PARK WILL BE OPENED FROM APRIL 1ST THROUTH NOV. 1ST. THE CURRENT OWNERS MOVED ALL THE TENNANTS OUT TO REPLACE/UPGRADE THE SEWER SYSTEM. THEY ALSO BUILT TWO MORE ROADS TO INABLE LARGE RIGS TO PULL THRU. I CURRENTLY OPERATE AN EQUINE REHABILITATION CENTER ONE MILE FROM THE PARK AND WOULD LIKE TO OFFER A PLACE FOR PEOPLE TO STAY THAT WANT TO BRING THEIR HORSES TO ME FOR REHAB. I HAVE 30 YEARS OF MANAGEMENT EXPERIENCE AND HAVE AN ASSOC. DEGREE IN APPLIED SCIENCE AS RELATED TO ANIMAL HUSBANDRY. I ONLY HAVE A SMALL AMOUNT OF CASH FOR THE DOWN, HOWEVER I DO HAVE EQUITY IN A COUPLE PROPERTIES AND HAVE AN AUNT THAT IS WILLING TO COSIGN THAT HAS THE PROPERTIES TO BACKUP THE MONEY FOR DOWN PAYMENT. THE ACQUISITION IS 650,000, HOWEVER I WILL BE ASKING FOR WORKING CAPITAL AS THE PARK WILL NOT START BRINGING IN REVENUE UNTIL APRIL 2016. AS STATED ABOVE, I WOULD LIKE TO EXPAND TO ADD CABINS FOR RENT. THERE WILL BE A FULL TIME MANAGER LIVING AT THE PARK AND I WILL BE THERE DAILY IN THE OFFICE. THE PARK CONSISTS OF 42.3 ACRES SO THERE WILL BE LOTS OF ROOM FOR PEOPLE TO EXPERIENCE COUNTRY LIVING, WALK THEIR DOGS, RIDE HORSES ETC. I FEEL THIS IS A VERY UNIQUE PARK. I HOPE YOU WILL BE INTERESTED. I CAN BE REACHED AT (970) 739-0856 THANK YOU

  4. Kim Winkler on February 20th, 2016 12:41 am

    Do you finance small full timer r v park with living quarters and a metal shop/ pavilion I have excellent
    Credit would have 20 to 25 percent down and excellent
    Credit and
    Stability and management
    Background past 30 years.

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