RV Park Financing: Bridge Loans, SBA and Other Options

RV parks are financed three main ways: an SBA loan when most revenue comes from short stays, a conventional or specialty lender when the park has a clean operating history, and a short-term bridge loan when the park needs work, lease-up or better records before permanent financing. A bridge loan is the faster option for a park that does not yet meet a bank's standards, but you should plan the refinance from day one.

This guide covers how lenders view an RV park, which options fit which situation, and what to prepare. If you own or want a manufactured housing community instead, see mobile home park bridge loans explained and our mobile home park and RV park financing page.

Key takeaways

• An RV park is an operating business on real estate, so lenders underwrite revenue, seasonality and management, not just the land.
• SBA 7(a) loans are capped at $5 million for standard loans, and the share of revenue from short stays is the eligibility question to settle first.
• Many banks avoid single-purpose properties, which is why bridge lenders and specialty lenders fill the gap.
• A bridge loan buys time to fix infrastructure and build a clean trailing 12 months before a refinance.
• Every worked example below is hypothetical.

Why is RV park financing different from other commercial loans?

An RV park is a single-purpose property whose value comes from the business operating on it. Lenders therefore look at monthly revenue, the mix of nightly, weekly and long-term sites, seasonality, utility systems and who runs the park.

That differs from a rental apartment building, where leases are the main driver. Income can swing by month, so a lender will usually want the full trailing 12 months, and a park that was just acquired or recently renovated may not have one. That gap is the most common reason an otherwise good park cannot get permanent financing on day one.

Can you finance an RV park with an SBA loan?

Often yes, if the park operates as a transient lodging business and an SBA lender approves it. The SBA 7(a) program is its flagship loan, with a standard maximum of $5 million, and the 504 program is a fixed-rate option for owner-occupied real estate and equipment.

Eligibility turns on the SBA's lender rules, published in SOP 50 10. As commonly applied, hotels and campgrounds qualify when more than half of prior-year revenue comes from stays of 30 days or less, and passive real estate leasing does not qualify. A park that earns most of its income from monthly or seasonal residents may therefore fall outside the program. Read the current SOP and confirm with an SBA lender before you design a deal around it, because the rules are updated periodically and lenders can set stricter credit policies.

SBA loans also take time and documentation. If the seller will not wait, or the park needs repairs before it can operate at full capacity, a bridge loan can close the purchase and an SBA or other permanent loan can follow.

When does a bridge loan make sense for an RV park?

A bridge loan makes sense when the park is worth more after you fix something than it is today, and a permanent lender will not lend until you do. Typical triggers include:

• Vacant or unusable sites that need pedestals, pads, water or sewer hookups.
• Failing private water, septic or electrical systems.
• Thin or messy records that need a few months to clean up.
• A conversion of long-term sites to transient sites, or the reverse, to change the revenue mix.
• A seller deadline or an auction timeline that a bank cannot meet.
• A maturing loan on a park that has not stabilized.

Ambition Lending makes commercial bridge loans from $100,000 with no fixed maximum, in metropolitan, suburban and rural markets, up to 75% of value for 6 to 24 months. Typical pricing is 8 to 12% interest and 2 to 4 points, and we return a term sheet within 24 hours on most requests. These are business-purpose loans only, and every request is underwritten on its own facts.

How do lenders underwrite an RV park?

Lenders test whether income supports the debt after a realistic allowance for expenses and vacancy. The key metrics are net operating income (NOI), the debt service coverage ratio and the debt yield, which divides NOI by the loan amount and is a quick check you can run with the debt yield calculator.

Hypothetical example: a park shows $300,000 of trailing NOI and you want a $2,000,000 loan. Debt yield is $300,000 divided by $2,000,000, or 15%. That is only an illustration of the math; each lender sets its own thresholds, and they vary by property and market.

Because income is seasonal, expect questions about the strongest and weakest months, how reservations are taken, whether utilities are billed back to long-term guests and how the manager is paid. Our guide to T12 underwriting explains how trailing statements are normalized, and the same logic applies to parks.

What are the risks specific to RV parks?

• Seasonality. Interest-only payments still come due in the slow months, so a lender may require an interest reserve.
• Flood and weather. Many parks sit near water. Check the property on the FEMA Flood Map Service Center and get insurance quotes before you commit.
• Environmental issues. Fuel storage, dump stations and old fill can matter; see Phase I environmental reports.
• Zoning and permits. Confirm that the current use is legal and that expansion sites are permitted.
• Management. Many parks are owner-run, so a lender will ask what happens if the operator leaves.

How does the bridge-to-permanent path work?

You use the bridge loan to buy or refinance, spend the draws on the work, run the park long enough to show clean trailing results, then pay the bridge off with permanent financing or a sale. Our guide on when to refinance from a bridge loan to a permanent loan walks through timing, and hotel bridge loans follow a similar logic because both are operating lodging businesses.

Before you borrow, confirm the exit would work at today's numbers, not just at your projected ones. If the takeout depends on moving the revenue mix above an SBA or lender threshold, write down the date by which you expect to meet it and a backup plan if you do not.

What should you send to get an RV park term sheet?

1. Purchase contract or payoff statement.
2. Monthly revenue and expenses for the last 12 to 24 months, if available.
3. Site-by-site rent roll showing nightly, weekly, monthly and seasonal sites.
4. Utility details: public or private water and sewer, septic, electrical capacity and metering.
5. Capex budget and schedule, with bids.
6. Insurance quote, flood zone determination and zoning confirmation.
7. Entity documents and a short summary of your park or hospitality experience.

A clean package shortens the first conversation. Our checklist of what to send applies here too, and you can send the deal when you are ready.

Frequently asked questions

What is the best financing for an RV park?

It depends on the revenue mix and the park's condition. An SBA 7(a) loan can fit an owner-operated park earning most of its revenue from short stays, while a bridge loan fits a park that needs repairs, lease-up or cleaner financials before a permanent lender will lend.

Can I use an SBA loan to buy an RV park?

Possibly. SBA lender guidance has treated transient lodging such as hotels and campgrounds as eligible when the majority of revenue comes from short stays, and standard 7(a) loans are capped at $5 million. Parks that earn mostly from long-term monthly sites may not qualify, so ask an SBA lender to confirm before you rely on it.

Do banks lend on RV parks?

Some do, but an RV park is a single-purpose property tied to an operating business, so many banks decline or ask for a larger down payment and a track record. Specialty and SBA lenders are more common sources.

How much of an RV park can a bridge loan finance?

Ambition Lending bridge loans go up to 75% of value, from $100,000 with no fixed maximum, and are also limited by loan-to-cost and the park's income. Terms are typically 8 to 12% interest and 2 to 4 points.

What documents do lenders want for an RV park?

Monthly revenue for the trailing 12 months, a site-by-site rent roll showing transient and long-term sites, utility and septic details, a capex plan, insurance and flood information, and the operator's experience.