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SBA vs Bridge Loans for Campground Acquisitions
By Jason Taken · Principal
SBA vs bridge for campground and RV park acquisitions — speed, down payment, DSCR, and when value-add sponsors should bridge first then refi.
Campground acquisitions sit at the intersection of small business and commercial real estate — which is why sponsors argue SBA 7(a) vs bridge / hard money on every LOI.
Program comparison: SBA.gov loans · Hub: RV park and campground financing
SBA terms in this guide come from SBA’s 7(a) loan page, its 7(a) terms and conditions for lenders, and its 504 loan page, all checked in October 2026. The prime rate is from the Federal Reserve’s H.15 release for October 1, 2026.
Side-by-side (2026)
| Factor | SBA 7(a) | Bridge / hard money |
|---|---|---|
| Rate band | Variable loans over $350K capped at prime + 3.0% (10.00% at the 7.00% prime of Oct 1, 2026) | 8.99%–13.5% IO |
| Max loan / maturity | $5M; up to 25 years on real estate | Short-term, sized to the business plan |
| Down payment | 10%–20% | 20%–35% |
| Close timeline | 60–120 days | 14–30 days |
| Occupancy tolerance | Stabilized preferred | 55%–70% OK |
| CapEx / holdback | Limited at initial close | Construction draws |
| Working capital | 7(a) can bundle | Separate reserve |
| Personal guarantee | Yes | Yes (typical) |
| Best exit from bridge | SBA refi | Bank or SBA |
When SBA wins on day one
- T-12 NOI supports 1.25x+ DSCR today — see cap rate guide
- Seller accepts 90-day+ close
- Operator has SBA-eligible experience and credit
- You need working capital + real estate in one 7(a) facility
- Park is full hookup, municipal utilities, 75%+ occupancy
When bridge wins on day one
- Competing LOI requires 14-day proof of funds
- Occupancy below 75% with credible lift plan
- Pad expansion, bathhouse rebuild, or glamping add in scope
- Bank or SBA rejected as-is NOI
- Auction or distressed acquisition
Acquisition workflow: how to buy an RV park
Bridge-to-SBA playbook
| Month | Action |
|---|---|
| 0 | Bridge close at 65%–75% LTV |
| 1–12 | CapEx draws — bathhouse, pads, marketing |
| 12–18 | Occupancy and ADR lift → clean T-12 |
| 18–24 | SBA 7(a) refi pays off bridge |
Carry example: $1.5M bridge at 11% IO ≈ $13,750/mo — budget 18 months = ~$247K interest line item.
SBA 504 vs 7(a) on outdoor hospitality
| Program | RV park fit |
|---|---|
| 7(a) | Acquisition + working capital + equipment — most common |
| 504 | Real estate + bathhouse/building improvements — longer timeline |
Owner-operator with on-site manager residence may add complexity — disclose in SBA pre-screen.
Program rules that shape a campground deal
- 504 maximum and uses. The 504 program tops out at $5.5 million, with 10-, 20-, and 25-year terms. It funds buildings, land, and long-life equipment. It cannot fund working capital, inventory, or investment in rental real estate.
- 504 pricing. SBA says the 504 rate is pegged to an increment above the 10-year Treasury, with fees of about 3% of the debt that can be financed. The 10-year yield was 5.24% on October 1, 2026.
- 7(a) uses. SBA lists real estate, working capital, equipment, changes of ownership, and refinancing current business debt as eligible 7(a) uses. That is why 7(a) is the common tool when you buy the business and the land together.
- Variable-rate caps by size. Variable 7(a) loans of $50,000 or less can go to base rate plus 6.5%. Loans over $350,000 are capped at base rate plus 3.0%. Fixed-rate maximums are published separately by SBA.
The active-business test
SBA lends to operating businesses. Under 13 CFR 120.110(c), passive businesses owned by landlords that do not actively use the assets are ineligible, with narrow exceptions. A campground with nightly guests, a front desk, and a camp store looks like an operating business. A park whose income is mostly long-term site leases may draw questions about whether it is passive. Before you count on an SBA exit, ask an SBA lender to review your revenue mix and management plan. Investors new to this rule can start with can real estate investors use SBA loans.
Hybrid and glamping assets
Non-standard units (yurts, cabins) often start on bridge regardless of headline occupancy — glamping financing guide
Risks
- SBA denial after bridge — extend IO or sell
- Seasonality — refi DSCR tested on trough month
- CapEx overrun — holdback insufficient
- Personal guarantee on both programs
- Rate environment — permanent debt higher than modeled
When to start SBA vs bridge conversation
| Your LOI deadline | Start with |
|---|---|
| Under 21 days | Bridge — submit scenario |
| 60–90 days | SBA 7(a) PLP pre-qual |
| Turnaround park | Bridge with written refi path to SBA at month 18 |
SBA cannot accelerate for auction — bridge is the acquisition tool, SBA is the permanent tool.
Worked example — 62-pad turnaround in Wisconsin Dells corridor
Illustration (all figures hypothetical). Profile: family-owned seasonal park, open May through October (184 nights), 58% season occupancy, deferred bathhouse, seller retirement sale.
| Line | Amount |
|---|---|
| Purchase price | $1,420,000 |
| Bridge LTV (68%) | $965,600 |
| Sponsor equity | $454,400 |
| CapEx holdback (drawn over time) | $185,000 |
| Rate | 11.25% IO |
| Monthly IO (avg ~$1.05M balance) | ~$9,840 |
As-is economics at purchase: 62 sites × 184 nights × 58% × $55 average nightly rate ≈ $363,900 of site revenue. At a 45% NOI margin, NOI is about $163,800, an 11.5% cap rate on the price. That high cap rate is what a turnaround buyer is paid for.
Stabilization plan across two operating seasons:
| Period | Action | Target occupancy |
|---|---|---|
| Off-season 1 | Bathhouse rebuild, pedestal electric upgrades, new signage | — |
| Season 1 | Online booking, marketing push | 58% → 70% |
| Off-season 2 | Add 6 permitted sites, store refresh | — |
| Season 2 | Rate increase to $58, full T-12 for SBA pre-screen | 70% → 78% |
Month 18 T-12 (projected):
| Line | Annual |
|---|---|
| Site revenue (68 sites × 184 nights × 78% × $58) | ~$566,000 |
| NOI at a 48% margin | ~$271,700 |
| Value at a 9.0% cap | ~$3.02M |
Sizing the SBA 7(a) refinance at month 18, assuming the 10.00% variable-rate cap and a 25-year term:
| Test | Result |
|---|---|
| Max loan at 1.25x DSCR | ~$1.99M |
| Max loan at 75% LTV | ~$2.26M |
| Bridge payoff (fully drawn) | $1,150,600 |
| SBA loan requested (payoff plus costs) | ~$1,200,000 |
| DSCR on $1.2M | ~2.08x |
The refinance pays off the bridge with room to spare on both tests. SBA lists refinancing current business debt as an allowed 7(a) use, but refinance requests have their own SBA tests, so confirm the plan with an SBA lender before you close the bridge.
Total carry cost (18 months at 11.25% IO): ~$177K interest — a budget line item, not a surprise. See RV park cap rates for cap selection by market tier.
Payment comparison: bridge IO vs SBA amortizing
On the numbers above, the two payments are close. Bridge interest at 11.25% on $1,150,600 is about $129,400 a year, with no principal paid down. The SBA loan at 10.00% on $1.2M, amortizing over 25 years, costs about $130,800 a year. Most of that early payment is interest, but some principal is retired every month. The real cost of staying on bridge is not the payment. It is the extension fees, the maturity date, and the rate risk if the plan slips.
SBA 7(a) pre-qualification checklist
Before you pass on bridge for SBA speed savings, confirm the park clears these gates:
| Requirement | Typical SBA threshold | Turnaround park reality |
|---|---|---|
| T-12 DSCR | 1.25x+ | Often 0.85x–1.05x at acquisition |
| Occupancy | 75%+ preferred | 55%–70% common on value-add |
| Down payment | 10%–20% | Same — but close takes 60–120 days |
| Personal guarantee | Required | Required on bridge too |
| Environmental | Phase I clean | Phase I + septic capacity study |
| Seller patience | 90+ day close | Auction sellers won’t wait |
If two or more turnaround realities apply, start with bridge financing and document the SBA refi path in writing at LOI.
Start the SBA file during the bridge, not after
The refi goes faster when the file is built while you operate. Keep these current from month one:
- Monthly P&L and balance sheet from your own books, not the seller’s
- Booking-system exports by site and month for each season
- Business tax returns once your first full year is filed
- Paid invoices for every holdback draw, matched to the CapEx budget
- A personal financial statement and resume for each 20%+ owner
An SBA lender reviewing two clean seasons of your own numbers is a very different file from one built on the seller’s history.
Seasonal DSCR stress — why bridge carry beats SBA denial
Many SBA lenders look past the annual average to the weakest stretch of the year. On northern parks, that is the closed season. A park that runs 92% in July and 38% in May can still look fine on a T-12, while it earns nothing from November through April.
| Month | Occupancy | Monthly site revenue (62 sites × $55 × 31 nights) |
|---|---|---|
| July (peak) | 92% | ~$97,300 |
| May (shoulder) | 38% | ~$40,200 |
| January (closed) | 0% | $0 — but insurance, taxes, and debt service continue |
Show the lender a monthly cash budget that proves summer cash covers winter payments. Ask the lender early whether it will want a working capital reserve or a payment schedule that fits your season.
Bridge lenders underwrite value-add thesis + exit path — not trough-month DSCR on day one. Model 18 months of IO carry before you assume SBA refi timing. Compare how to buy an RV park for acquisition DD that feeds both programs.
When hybrid structure makes sense
Some sponsors run SBA 7(a) for real estate and bridge holdback for CapEx on the same acquisition — rare, requires coordinated lenders, but viable when:
- Park is stabilized at 78%+ occupancy but needs $200K+ bathhouse rebuild
- Seller demands 30-day close on real estate while CapEx can fund post-close
- Operator has SBA PLP pre-approval and a bridge lender comfortable in second-lien position
Most operators should treat this as exception architecture — default playbook remains bridge close → stabilize → SBA refi. Glamping add-ons almost always start bridge regardless of headline occupancy.
RV park hub · submit scenario · nationwide outdoor hospitality.
Related
- RV park hub
- Commercial real estate financing
- Owner-occupied commercial — if operator occupies on-site building 51%+
Submit scenario · (833) 264-7776
Bridge wins competitive campground LOIs; SBA wins stabilized T-12 files with time to close — match product to seller timeline.
SBA vs Bridge Financing for Campground and RV Park Acquisitions — next step (2026)
Submit scenario · Pre-qualify · (833) 264-7776.