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Expanding Ski Resorts: Leveraging USDA B&I Financing for Sustainable Growth

Ski resorts are a significant component of the tourism and leisure industry which provides vacation options for millions of people every year. Nevertheless, developing or sustaining these resorts may pose considerable financial problems because of high operational costs, seasonal revenue dynamics, and continuous maintenance of infrastructure.

by | Jun 3, 2024

Ski Resort Business Landscape


Specialized Agricultural Equipment

The international ski resort industry has observed gradual growth, on the back of higher incomes, rising interest in winter sports and developing tourism markets.

The ski resort industry is a big source of revenue, up to billions of dollars per year, with factors like tourist demand, weather, and infrastructure quality affecting it the most.

For instance, a medium-sized ski resort like Park city mountain resort could produce up to $5 million in sales revenue in a year if it is visited by 50,000 annually and its ticket price is, on average, $100.

Nevertheless, despite the possible growth potential, ski resorts are faced with unique challenges that obstruct the long-term sustainability and expansion projects. These challenges include:

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Seasonal Income Fluctuations: Ski resorts generally make a large portion of their income during winter, causing irregular income fluctuations during the rest of the year.

High Operational Costs: Continuous operation of ski lifts, snowmaking systems, and other infrastructure can increase of operational expenses which can be overwhelming, mainly out of season.

Weather Dependency: Ski resorts are greatly influenced by weather conditions, with snowfall and temperature fluctuations affecting visitation and revenue.

Financing Barriers in the Ski Resort Business

 Expanding or modernizing ski resort facilities needs large financial capital which can be difficult to attain through conventional funding options.

The inherent revenue volatility and the seasonal nature of the business may dissuade traditional lenders from seeing ski resorts as low-risk ventures.

Limited Access to Capital: Traditional lenders could be reluctant to provide loans to ski resorts because they may perceive risks. This means less capital is available for expansion or infrastructure upgrades.

High Interest Rates: If ski resorts are only able to access financing from traditional lending institutions, they could end up with high-interest rates which in the long-term increase the overall cost of borrowing and lower profitability.

Stringent Loan Requirements: Traditional lenders could impose very high credit score requirements and/or collateral which could result in ski resort operators not being able to qualify for the loans.

Benefits of Opting for ABL Loans

The Role of USDA B&I Loans in Promoting Ski Resorts.

The contribution of USDA B&I financing to alleviating financing issues in ski resorts and other rural business cannot be overemphasized. The USDA B&I Loan Guarantees Program is a program that offers loan guarantees to lenders who choose to lend credit to eligible rural businesses including ski resorts.

Through the reduction of lender risk, the USDA B&I financing empowers ski resort operators by providing them with the necessary funds for expansion, infrastructure upgrades and operational improvement.

Major Advantages of USDA B&I Loans for Ski Resorts 

Loan Guarantee: The B&I loan guarantee from USDA act as credit enhancement for the lenders and brings down the cost of capital for ski resort operators.

Flexible Terms: USDA B&I loans offer flexible terms such as longer repayment periods and lower down payment, making them more accessible for ski resorts with seasonal revenue streams.

Competitive Interest Rates: The USDA B&I loans normally have a competitive interest rate which is lower than the traditional financing options. This translates to reduced cost of borrowing for the operators of ski resorts.

Eligibility Criteria: While USDA B&I loans have eligibility criteria, ski resorts in rural areas are most often able to fulfil these criteria, thus making them ideal candidates for funding.

Support for Sustainable Growth: Through USDA B&I financing, ski resorts get access to capital. This, in turn, sustains their growth and development and facilitates job creation, economic stability, and community development in rural areas.

The Road to Acquiring USDA B&I Financing for Ski Resorts

The process of securing USDA B&I financing starts with mastering loan requirements. First, the ability of individual borrowers to pass the citizenship or residency requirements ensures that the program benefits American citizens or legal residents.

The top priority for non-governmental entity borrowers is demonstrating that the loans will stay in the U.S. and primarily contribute to the job creation of small-town inhabitants.

Compliance with these conditions will help businesses to draw full benefits from the USDA B&I loans and thereby materialize their goals of business expansion and the prosperity of rural communities

Eligible Areas

The eligible areas under the USDA B&I program include rural areas or small towns where the population is not more than 50 thousand citizens.

This criterion aims to steer investment towards communities that are the most economically deprived and thus require targeted development measures, thereby directing cash towards rural areas where such opportunities may be rare.

While borrowers can be based in urban city centers, the projects they propose must be situated in approved rural areas in order to qualify for U.S. Department of Agriculture B&I funding. This distinction affords businesses the opportunity to harness the program’s benefits to stimulate economic development in rural areas.

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Permissible Uses of Funds

Through USDA B&I loan funds, businesses have access to a comprehensive range of assistance programs, resulting in growth-oriented activities. Business conversions and expansion and land acquisition and machinery purchase are among the  permissible uses of the funds.

Businesses can make the most efficient use of acquired funds by allocating them to activities that play a key role in increasing value within their operations. This can drive sustainable growth for rural America.

By investing in essential areas, including infrastructure modernization and equipment upgrade businesses can improve their efficiency, competitiveness, and resilience of the market.

Furthermore, refinancing of debt or making strategic acquisitions constitute other core ways of using the money allocated for USDA Business and Industry loan funds.

Factoring vs Tangible Assets

Creating a Profitable Ski Resort

Optimize Facility Design

The design and layout of a ski resort is very crucial factor in profitability of the resort. Considerations like slope accessibility, lift capacity, and other factors like amenities play an important role in the visitor satisfaction and spending patterns.

For example, adding more ski lifts and improving snowmaking abilities will not only fortify the appeal of the resort but also draw various tourists to it during summer activities. Apart from that, restaurants, stores and hotels as amenities can create other sources of revenue and generally improve the guest experience.

Adopt Strategic Pricing Strategies

Creating strategic pricing plans is imperative for increasing revenue and profitability in the ski resort business. Dynamic pricing models, which change prices according to factors such as demands and weather conditions, are a great tool for maximizing revenues.

Providing low price tickets for visitors during off-peak time is a good way to pull people over, and the revenue from ticket sales would be higher in comparison to the other periods.

USDA B&I Loans as a Means of Financing 

Getting financing is a crucial phase in making a profitable ski resort, and the USDA B&I loan is an available, viable funding option for rural businesses. The first step that developers must take in order to get the loan approved is to identify the projects that qualify and submit the loan application to an accredited lender.

Borrowers are assessed on the basis of creditworthiness, feasibility of a project and ability to pay back the loan amount. Upon being accepted, the USDA will then guarantee a part of the loaning amount, so the lender won’t have to worry about risk as much, and the project will have the capital that it needs.

The USDA B&I loan terms are negotiated between a lender and debtor, informing on the amount of loan, interest rate, and duration of the loan.

Let’s say a ski resort needs a $10 million loan for a 20-year repayment term at an annual interest rate of 6%. The projected annual loan payments would be around $856,700.

Through the evaluation of loan repayment terms and obligations, developers will be in a position to make certain that financing is suitable with their business objectives and financial capabilities.

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Implementing Best Practices

Effective management and operational efficiency are key components to making a ski resort profitable. Implementing best practices which include staff training, equipment maintenance schedule and guest service standards can contribute positively to the performance and guest satisfaction levels.

The ski lift waiting times can be shortened and snow grooming systems can be upgraded to enhance guest experience and brand loyalty leading to a long-term profitability.

Strategic marketing and promotion are vital for the resort as it will attract visitors and help to increase the revenue. Digital marketing channels, social media platforms, and targeted advertising campaigns could be used to reach potential visitors and increase ticket sales.

Furthermore, cooperation with local companies, tourism organizations and travel agents will widen the audience and bring the guests from new markets. Through marketing and promotional activities, ski resorts can increase brand recognition and achieve constant revenue generation.

Brewery Financing


Operating a successful ski resort necessitates thorough planning, strategic reasoning, and availability of capital. By knowing the market dynamics, optimizing a facility design, using the USDA B&I loans as a financing option, and implementing the best practices in operations and marketing, developers can make their resorts successful in the competitive ski industry.

Flaney Capital is here to assist you in a stress-free application process for USDA B&I loans. We will connect you with low-interest lenders to ensure you get access to affordable financing. Take the first step toward financial growth for your ski business. 

Contact us at 1-888-822-0844.

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Here are some answers to Frequently Asked Questions.

What are the main advantages of ABL loans?
ABL loans allow companies to use their existing assets as collateral for financing, providing greater flexibility than traditional lending methods.
Are there any risks associated with ABL loans?
Yes, if a business cannot repay its loan, the lender may seize the assets used as collateral. Businesses need to understand this risk before opting for an ABL loan.
How does accounts receivable factoring work for ABL loans?
In accounts receivable factoring within the context of ABL loans, a business sells its outstanding invoices (accounts receivable) at a discount to obtain immediate cash.
What is involved in the due diligence process for obtaining an ABL loan?
The due diligence process typically involves assessing a company’s financial health, including reviewing its balance sheet, income statement, and cash flow statement, among other things.
Can all types of companies apply for an ABL loan?
While any company can apply for an ABL loan, it is particularly beneficial for those with a high volume of accounts receivable or significant tangible assets.