How to Finance an RV Park: SBA 7(a) vs. 504 Explained

Thinking about buying or building an RV park and not sure how to finance it? In this RV Parks Q&A, Moe Kruger, Senior Loan Officer for Live Oak Bank's outdoor hospitality team, walks through how lenders actually look at RV parks, campgrounds and glamping resorts, and how to show up prepared. In this episode: • Why "I want to buy a park" isn't enough: transient vs. destination parks • Post-COVID "sugar high" financials and pricing • Refinances vs. acquisitions vs. expansions vs. ground-up deals • The 3 things that sink a ground-up development • Use of proceeds: 15% contingency and separate interest reserves for construction and ramp-up • SBA 7(a): 80% leverage, 25-year terms, debt service coverage • SBA 504: the three-legged stool, haircuts for special-use properties, prepayment penalties • Myth busting: "the SBA ties up everything you own" and "SBA loans are too expensive" • What to put in your business plan and projections • The 30-day lease rule for long-term vs. transient sites • Credit scores, post-closing liquidity, and structuring multiple partners Chapters 00:00 Meet Moe Kruger 1:16 From self-storage to RV park lending 7:07 "I want to buy a park": what kind? 9:35 Who's coming to your park, and why 10:45 The goal isn't just getting approved 16:34 Today's lending environment and COVID-era numbers 19:31 Refinances, acquisitions and expansions 21:49 3 ways to sink a ground-up deal 23:07 Feasibility studies 23:46 Use of proceeds, contingency and interest reserves 27:20 Structuring an acquisition loan 28:02 SBA loans explained 29:37 Debt service coverage and 80% leverage 33:35 SBA 504: the three-legged stool 36:22 No financial covenants 37:10 Myth: "The SBA ties up everything you own" 42:35 Myth: "SBA loans are too expensive" 48:39 Common borrower mistakes 50:55 Business plans and projections 53:27 Timing your closing around the season 54:16 Hybrid parks and the 30-day lease rule 56:40 Permits, septic and water 57:29 Seller notes and creative financing 58:40 The 3–5 year outlook 59:15 Advice for new owners 1:01:56 Q&A: JV with the seller, then refinance 1:13:09 What to bring a lender and post-closing liquidity 1:16:00 Credit scores 1:17:39 Multiple partners and SBA limits 1:20:00 Cost per pad for new construction 1:20:52 Amenities lenders won't finance Join the conversation Monthly RV Parks Q&A, every 3rd Tuesday at 6 PM ET. Guest: Moe Kruger, Senior Loan Officer, Outdoor Hospitality, Live Oak Bank Hosted by the RV Park Investors Network, a Campfire Ventures community. This video is for educational purposes only. It is not an offer to sell or a solicitation of an offer to buy any security or investment, and it is not legal, tax or financial advice. Loan terms, rates and SBA rules discussed reflect the date of recording and may change.