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USDA Business Loans: A Boon for RV Park Owners

Behind the scenes, however, the owners of the amusement parks usually face challenges related to struggling to meet financial needs and pursue the dreams vital for the park’s survival and growth. USDA Business Loans emerge as a reprieve for these entrepreneurs, rewarding them with specially designed loans that spearhead business growth.

by | Jun 2, 2024

USDA Business Loans: A Boon for RV Park Owners

Understanding Loan-to-Value Ratio in ABL

RV parks in villages are a boon to nature, the economy and even the mental health. Behind the scenes, however, the owners of the amusement parks usually face challenges related to struggling to meet financial needs and pursue the dreams vital for the park’s survival and growth. USDA Business Loans emerge as a reprieve for these entrepreneurs, rewarding them with specially designed loans that spearhead business growth.

Low Interest Rates and Easier Repayment Schedules

USDA RV park loans provide secure financing at a lower interest rate compared to a conventional bank loan. It amounts to cheaper installments, meaning there is more working capital which can be used for long run growth and improvement of your customers’ experience. Not only that, but extended repayment terms, which are tailored to the personal financial situations of owners, make it possible to avoid cash flow problems during revenue drops.

Growth Potential Over Collateral

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Unlike other lending companies, USDA loans emphasize a solid business growth potential over collateral. This ensures that owners who have limited credit history or assets will keep the finances needed to continue nurturing the park and enhance its scope. By prioritizing the borrowers’ growth potential instead of collateral, USDA loans help owners actualize their dreams without living through insurmountable financial stress.

USDA Financing Conditions for RV parks.

The United States Department of Agriculture Business and Industry Guaranteed Loan Program gives guaranteed loans of 80% but the most you can borrow is $25 million. This guarantee gives lenders the confidence to lend to RV park owners. Hence it works to their benefit. While SBA loans have their own specific rules, USDA loans always come with an 80 % guarantee.

One of the good things about USDA loans is that you can get multiple loans up to $25 million. This implies that RV park owners can receive a significant amount of money to expand their business without strict limitations on what they borrow.

Please check the USDA Income and Property Eligibility web page to see whether a project can be qualified for a USDA loan. Here, you should key in the project’s location and choose the OneRD Loan Guaranteed tab. Projects in small towns that are far from the population might also get approved for USDA loans. Even though you are living in a city, your project can still be classified as eligible, provided it is located on the outskirts.

Because the objective here is to assist businesses in rural areas, many different kinds of rural businesses can be financed by the USDA. Whether you’re a profit or a non profit business, a cooperative, a tribe, a public body or just an individual, financing a business with the USDA is the same for everyone.

Comparing Financing Options

Benefits of Opting for ABL Loans

Traditionally, RV park owners have the option of either getting Conventional loans, SBA loans or USDA loans when starting, expanding or renovating RV parks.

Traditional Loans

There are plenty of traditional loans in the markets, but because of this, RV park owners may encounter problems when trying to choose the right one. Also, these loans attract higher interest rates and have very tight eligibility criteria. 

This makes things hard in rural areas where the flow of capital may be a challenge. The owners will have to balance the prospects and downsides of standard loans against those of the proposed cryptocurrencies.

SBA Loan Complexities

SBA loans provide appealing conditions like lower down payment and longer payback periods to the owners of the RV parks. However the approval process is involving and unpredictable with no certainty that it will go through.

USDA Business Loans

USDA Business Loans present an exceptional opportunity for RV park owners by providing them with a wide range of benefits, such as low interest rates, longer repayment periods and also specialized support for rural small businesses. The loans are a lifeline for park owners, granting them the freedom to fuel expansion and stability while contending with the peculiar situation of lending in rural areas.

Applying for USDA Business Loans: A Step By Step Guide

Step 1: Assess Eligibility

USDA & SBA Across America

First of all, before the application process, it’s important to find out if your RV park meets the eligibility criteria for USDA. As for the primary criteria, the park must be situated in a remote place that has been specified by the USDA. On top of that, you ought to be in a position to show a title deed and the required permits and licenses. Meeting these criteria is the first essential step to get access to USDA Business Loans.

Step 2: Gather Documentation

After making sure you qualify, the next step is to get your supporting documents together for your loan application. This includes the creation of financial statements explaining the income and expenditure of your park as well as a detailed business plan covering your operational strategies and expected growth. 

Besides you will be asked to furnish evidence that your park is rural and you are either a citizen or a permanent resident. Submitting all documents beforehand and having them well organized will simplify the process of the application.

Step 3: Find an Approved Lender

USDA Business loans are run by approved lenders who are enrolled in the USDA’s loan guarantee program. These lending institutions are knowledgeable in the USDA requirements and processes of getting USDA loans for rural businesses. It is important to select a lender with experience of financing RV parks and related industries. 

Collaborating with an accredited lender will ensure that you not only get professional guidance during the loan application period but also boost your odds of being granted funds to start your park.

Step 4: Apply Now

With the documents ready and a lender identified, the next step is to submit the application form. The bank will give you the required application forms and instructions to fill them. Make sure that you fill out the forms correctly and completely. This includes providing the requested information and supporting documents.

Why the USDA Supports the Development of RV Parks

Factoring vs Tangible Assets

The United States Department of Agriculture (USDA) serves as a major funding tool for multiple RV park projects in the country. What motivates the USDA’s support for RV parks may determine the significance of such investments for both local areas and the entire economy.

Promoting Rural Economic Development

One of the key objectives of the USDA is to stimulate the economy in underserved parts of the country through the provision of RV park loans. The recreational vehicle parks function as powerful economic engines by bringing in tourists and guests who spend on expenses involving accommodation, dining, shopping and recreational services. Through its investments in RV parks, USDA enables the creation of jobs, income, and economic development in rural areas.

Supporting Tourism and Recreation

Rural communities heavily rely on tourism and recreation as the key drivers of economic growth, and RV parks have become an indispensable part of this financial ecosystem. Travelers in their RVs often tend to choose scenic locations and recreational opportunities in outdoor areas, which means that rural localities with natural beauty and recreational amenities are perfect places for RV parks. 

When the USDA finances RV parks, the tourism industry of the rural regions gets the required boost, as the visitors are drawn in, and the revenues of the local business multiply.

Addressing Housing Needs

Apart from accommodating tourists, RV parks can also be used as temporary or permanent dwelling options for people and families in rural areas. This is particularly critical in areas where affordable housing options may be scarce. Through RV park financing, the USDA helps to meet the housing needs of small towns and rural villages.

Preserving Natural Resources

RV parks are mostly situated in environmentally delicate places, like national parks, forests, and wilderness areas. The USDA, through controlling funding for RV parks, ensures that any developments in these areas are done in a sustainable manner; that is, natural resources will be preserved and rural scenery protected. This is consistent with the USDA’s mission to help promote conservation and environmental stewardship in rural America.

Understanding Account-Based Loans - ABL Loans


USDA Business Loans are vital for the success of RV parks in rural areas and small townships. Thanks to reduced interest rates, flexible repayment schedules, and customized support for back-country parks, these loans allow owners to materialize their dreams for their parks.

Through learning the ins and outs of the application process and taking advantage of expert help, owners can move ahead with confidence and eventually achieve continued success and development in the recreational vehicle park business.

Take the first step towards securing your RV park’s financial future with Flaney Capital. Let us streamline your loan application process and connect you with low-interest lenders, ensuring you access the funds needed to grow your business.

Contact us at 1-888-822-0844.

Watch Our Videos

Are you ready to take your business to new heights? Discover the power of the SBA Business Industry Program. With its comprehensive eligibility criteria, underwriting requirements, and loan guarantees, this program provides accessible and affordable loan options for businesses in rural areas.

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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.