SBA RV Park Construction Loans: How to Build or Expand an RV Park Using SBA Financing
How SBA loans can finance RV park construction—what qualifies, what doesn’t, and how to structure ground-up builds and expansions.
If you’re looking at RV parks right now, you’re probably seeing what a lot of smart investors are seeing:
strong demand
resilient cash flow and
a massive shortage of well-built, modern RV inventory.
But here’s where most people get stuck.
They understand RV park acquisitions… They understand buying an existing park…
What they don’t understand is how to finance RV park construction — especially ground-up builds or major expansions — using SBA loans.
That’s what we’re breaking down here.
Can You Use SBA Loans to Build an RV Park?
Yes — SBA loans can be used for RV park construction, but only if the project is structured correctly.
The SBA does not finance RV parks as passive real estate. They finance them as operating businesses.
That distinction is everything. If your RV park construction is tied to:
Active operations
Management systems
Revenue beyond just pad rent
Then SBA financing becomes very realistic.
If it’s speculative land development with no operating plan, it won’t qualify.
What Types of RV Park Construction Qualify for SBA Financing?
SBA RV park construction loans can be used for:
Ground-up RV park development
Expanding pad count at an existing park
Infill development on underutilized land
Utility infrastructure upgrades (water, sewer, electric)
Roads, pads, hookups, and site work
Office buildings, clubhouses, and amenities
Conversion from seasonal to year-round parks
The key requirement is that the finished project supports an operating RV park business, not land speculation.
Which SBA Loan Programs Are Used for RV Park Construction?
Most RV park construction projects use one of two SBA programs.
SBA 7(a) Construction Loans
This is the most common option.
Up to ~$5 million
Can combine construction + permanent financing
Can include soft costs and working capital
25-year amortization after construction
Typically 10–20% down
This is ideal for:
Ground-up RV park builds
Smaller to mid-sized developments
Parks with expansion + infrastructure needs
SBA 504 Construction Loans
Used when real estate is the dominant asset.
Long-term fixed rates
Lower interest on the CDC portion
Typically requires a stabilized operating business
Often used for larger or phased RV park developments
In some cases, hybrid structures are used depending on size and complexity.
Down Payment for SBA RV Park Construction Loans
Most SBA RV park construction loans require:
10%–20% total equity injection
This can come from:
Cash
Land equity (if land is already owned)
A combination of both
If you already own the land, its appraised value can significantly reduce how much cash you need to bring to the table.
How SBA RV Park Construction Loans Are Underwritten
This is where most deals fail.
Banks underwrite RV park construction SBA loans based on:
Post-construction cash flow
Realistic lease-up assumptions
Conservative revenue projections
Infrastructure costs
Borrower liquidity after closing
Management and operating plan
Aggressive projections kill deals.
Conservative, well-supported numbers get approved.
Construction Draws & Loan Conversion
During construction:
The loan is typically interest-only
Funds are released through draws
Inspections confirm completed work
Lien waivers are required
After construction:
The loan converts to permanent financing
Full amortization begins
The rate structure locks in
Cost overruns are one of the biggest risks — conservative budgets matter.
Common Reasons SBA RV Park Construction Loans Get Denied
Most denials have nothing to do with rates.
They fail because of structure.
Common issues include:
Treating the project as land development
No clear operating plan
Unrealistic lease-up timelines
Undocumented infrastructure costs
Weak borrower liquidity
Using lenders inexperienced with RV parks
The SBA supports well-structured operating businesses, not speculative projects.
Why Investors Use SBA Financing for RV Park Construction
SBA loans allow RV park developers and operators to:
Build with less cash down
Lock in long-term amortization
Control valuable real estate
Expand pad count and NOI
Replace short-term construction debt with stable financing
This is why SBA financing has become one of the most powerful tools for RV park construction and expansion.
Final Thought
SBA financing for RV park construction can be incredibly effective — but only if the deal is engineered correctly from the start.
The structure matters more than the rate. The operating plan matters more than the land. And lender selection matters more than almost anything else.
If you’re considering ground-up RV park construction or expansion, the smartest first step is determining whether the project qualifies and how it should be structured before you ever submit a loan application.