USDA B&I Loans for RV Parks

The USDA doesn't hand you a check. Like the SBA, it runs a guarantee program: a commercial bank makes the loan, and the USDA promises to cover a share of the bank's loss if you default. That guarantee is what makes a lender comfortable financing a rural business it might otherwise pass on.

The program exists to create jobs and investment in rural America — and an RV park is a near-perfect fit. Parks sit in rural areas by nature, they serve rural tourism, and they employ local people. The USDA recognizes campgrounds and RV parks as an eligible rural business use, which is why this door is open even though almost nobody in the RV-park world talks about it.

The core test is location. The business must be in a community of 50,000 inhabitants or fewer. That sounds restrictive until you see the map — roughly 97% of U.S. land area qualifies as rural under this rule. A huge share of RV parks and campgrounds are exactly where the USDA wants to lend.

• Eligible borrowers: for-profit businesses, non-profits, cooperatives, and federally recognized tribes
• The project must be in an eligible rural area (population 50,000 or under)
• Eligible uses include business acquisition, real estate purchase, equipment, working capital, and certain refinancing

A USDA B&I loan can go up to $25 million per project (higher in rare cases approved by the USDA National Office). But the detail that matters most for anyone building a portfolio: there is no aggregate cap.

Compare that to the SBA 7(a) program, where the maximum is $5 million total across all your SBA borrowing — hit that ceiling and you're done. With USDA B&I, each qualifying rural project can carry its own loan, so you can finance one park, then the next, then the next, without bumping a lifetime limit.

On the real estate that makes up most of a park purchase, the maximum term is up to 30 years — five more than SBA 7(a)'s 25. Equipment runs up to 15 years (or its useful life), and working capital up to 7. Rates are set by the lender and can be fixed, variable, or a blend.

The USDA's guarantee to the bank steps down as the loan gets bigger:

• Loans of $0–5 million: 80% guaranteed
• Loans of $5–10 million: 70% guaranteed
• Loans over $10 million: 60% guaranteed

Plan for a meaningful down payment and a couple of USDA-specific fees:

• Down payment / LTV: up to 80% loan-to-value on commercial real estate — so roughly 20% equity into the deal (70% LTV on equipment, 60% on inventory)
• Equity requirement: existing businesses need at least 10% tangible balance-sheet equity; new businesses or start-ups need 20%
• Guarantee fee: an initial fee, currently 3% of the guaranteed portion
• Annual renewal fee: currently 0.5% of the outstanding principal balance

For a USDA B&I loan over $1 million, you'll need an independent feasibility study — a third-party analysis that shows the park's projected income realistically supports the loan. Most park purchases clear $1M, so plan on this.

It's a real cost and a few weeks of time, so budget for a qualified consultant. But it's also part of why USDA works: the study proves the park's income can cover the loan before the money moves — the same homework a smart buyer would do anyway.

A USDA B&I loan is not a fast close. Unlike a residential USDA mortgage (which can close in 30–45 days), a B&I business loan runs 60 to 90 days for most deals — and a larger, real-estate-heavy park purchase sits at the longer end. Two things drive the timeline:

• The size and complexity of the deal. A straightforward acquisition moves faster; a bigger purchase with real estate and construction means more documentation and more lender scrutiny.
• How fast you provide documents. This is the part you control, and it's usually what decides whether you close in 60 days or drift past 90. The process has two rounds of document-gathering — one during pre-qualification, one before closing — plus the USDA's own review after the lender approves.

The single biggest cause of delay is slow borrower response. Every day the lender waits on a document or an answer is a day added to the clock.