Loans for Campgrounds & 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.

Whether you are buying or building, taking advantage of funding options such as small business loans (SBA) is essential. Keep reading to learn more about small business loans and whether they are the right funding option for you.

Why Get a Loan for Your KOA Campground?

As a KOA Campground business owner, you have many options for growing your business, such as buying a new property, expanding current facilities and providing upgraded technology for campers. However, using your existing funds to pay for essential expansions can hinder your growth. Securing an SBA hospitality loan can grow your business while preserving necessary capital.

To determine if securing an SBA loan for your campground is the right decision, you may wish to ask yourself the following questions:

  • What other options are available to meet long-term goals or grow my campground?
  • Do I know where I would apply for a loan or additional funding and how much I need to reach my goals?
  • How will expanding or purchasing a KOA affect my bottom line, profits and capital?
  • Can I repay my loan if I do not meet my financial goals?

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.

SBA Loans for Campgrounds

SBA loans are available through the United States Small Business Administration (SBA). The SBA aids small businesses across the United States by providing loans to promote long-term growth. The number of SBA loans has risen in recent years, allowing many different industries to feel more confident in the SBA and apply for a loan.

An SBA loan receives funding from various certified banks and lenders who work directly with a small business owner. Applying for a small business loan also guarantees if you cannot repay the loan in time, the SBA will cover some or part of the costs. While this guarantee often comes with higher rates, it provides additional security and greater rate flexibility compared to loans from a bank or other lending institution.

Required Documentation for an SBA Loan

To qualify for an SBA loan for your RV park, you must submit documentation about your campground such as:

  • Personal background and financial statements.
  • Business financial statements.
  • Business certificates and licenses.
  • Loan application.
  • Income tax returns.
  • Business overview.
  • Business lease.

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!