Loans forCampgrounds & RV Parks
Camping has long been a favorite pastime for many Americans, and the camping industry continues to grow each year. While Kampgrounds of America has always been a popular option for campers, the last few years of renewed interest has led to an industry boom, with many KOA locations expanding or building new campgrounds. While KOA offers tools such as the Startup Costs Estimator and Net Worth Estimator to assist with determining funds, many potential owners also need to consider outside funding sources.
Types of Financing for a KOA Campground
There are a variety of commercial loans and financing options available for businesses of any size. As a KOA Campground owner, your financing options include:
SBA 7(a) Financing for RV Park Businesses
Many small businesses choose an SBA 7(a) loan to secure long-term growth. SBA 7(a) financing allows RV parks to obtain up to $5 million in funding to complete projects such as:
- Purchasing land to build new facilities
- Buying an existing business (such as another KOA location)
- Repairing capital or refinancing debt
- Investing in machinery, furniture, technology or supplies to better accommodate campers
SBA 7(a) loans are popular among many RV park owners due to their flexible rates and low down payments. If you qualify for an SBA 7(a) loan, you can pay off your RV park loan in the long term while saving money for daily business expenses.
SBA 504 Loans
KOA Campground owners can also apply for an SBA 504 loan. SBA 504 loans or Certified Development Company (CDC) loans are for more specific purposes than an SBA 7(a) loan. If you need additional funding to buy real estate or equipment, you may wish to consider an SBA RV park loan.
An SBA 504 loan can fund the following:
- Purchasing land
- Buying an existing KOA
- Expanding your current KOA Campground
- Investing in utilities, parking lots or other improvements that contribute to your overall growth
- Converting or modernizing your current campground facilities
Conventional Loan Options
Depending on your needs, you can also consider loan options outside of an SBA loan. Similar to SBA 504 loans, conventional loans can supply funding for specific projects on your commercial real estate. Owners interested in purchasing or refinancing industrial or special-use properties can explore funding with a traditional loan. As you consider different funding options, you will want to consider RV park loan rates to determine which option is appropriate for your current capital and goals.
Learn More About Loans for Your KOA Campground Today
If you are ready to take the next steps toward buying, building or franchising a campground, KOA is here to help. Connect with us to discuss your options and learn more about potential funding options for your campground. Complete the contact form to learn more about owning a KOA today!