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SBA vs Bridge Loans for Campground Acquisitions
By Jason Taken · Principal, Jaken Finance Group
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
Side-by-side (2026)
| Factor | SBA 7(a) | Bridge / hard money |
|---|---|---|
| Rate band | ~10%–11.5% | 8.99%–13.5% IO |
| 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.
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
Profile: Family-owned park, 58% T-12 occupancy, deferred bathhouse, seller retirement sale.
| Line | Amount |
|---|---|
| Purchase price | $1,420,000 |
| Bridge LTV (68%) | $965,600 |
| Sponsor equity | $454,400 |
| CapEx holdback (in loan) | $185,000 |
| Rate | 11.25% IO |
| Monthly IO (avg $1.05M balance) | ~$9,840 |
Month 0–18 stabilization plan:
| Quarter | Action | Target occupancy |
|---|---|---|
| Q1 | Bathhouse rebuild, pad electric upgrades, new signage | 58% → 65% |
| Q2 | Seasonal marketing push, online booking platform | 65% → 72% |
| Q3 | Add 6 primitive pads (permitted), store refresh | 72% → 76% |
| Q4 | T-12 clean for SBA pre-screen | 76% → 78% |
Month 18 T-12 (projected):
| Line | Annual |
|---|---|
| Gross revenue (78% occ × 62 pads × $42 ADR × 365) | ~$695,000 |
| Operating expenses (42%) | −$292,000 |
| NOI | ~$403,000 |
| Stabilized value at 7.25% cap | ~$5.56M (optimistic) / $2.8M (conservative 50% value-add haircut) |
SBA refi at month 18 (conservative $2.4M value, 75% LTV):
| Line | Amount |
|---|---|
| SBA 7(a) loan | $1,800,000 |
| Bridge payoff | −$965,600 |
| SBA closing costs | −$45,000 |
| Net cash to sponsor | ~$789,400 |
Total carry cost (18 mo @ 11.25% IO): ~$177K interest — budget line item, not surprise. See RV park cap rates for cap selection by market tier.
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.
Seasonal DSCR stress — why bridge carry beats SBA denial
SBA lenders stress trailing NOI through the trough month — typically January or February on northern parks. A park that annualizes July occupancy at 92% but runs 38% in February will fail SBA DSCR even if the T-12 average looks acceptable.
| Month | Occupancy | Monthly gross (62 pads × $42 ADR) |
|---|---|---|
| July (peak) | 92% | ~$75,000 |
| February (trough) | 38% | ~$31,000 |
| T-12 average | 58% | ~$47,000/mo |
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)
Permanent 5.75%–10.5% DSCR sizes on executed lease rent with investor tax and insurance in NOI — not seller bills or STR pro forma.
Submit scenario · Pre-qualify · (833) 264-7776.