RV park owners say lack of financing is hurting business
Many campground and RV park owners say getting financing to expand or improve their businesses is almost impossible given the current economic and banking crisis. Despite the billions of dollars the banking industry has received in federal bailout money to make loans available, these small business owners say bank financing remains very difficult to obtain.
"Everyone we have talked to tells us that financing for RV park construction and development is non-existent at this time," said general manager of The Springs at Borrego RV Resort in San Diego Dan Wright.
He says that the bank's unwillingness to lend money to profitable businesses is costing millions in lost revenues.
"Since the beginning of 2008, we have turned away over 8,000 nights' worth of business due to a shortage of campsites. But even with numbers like these, lenders still can't bring themselves to provide us with a loan. It makes no sense," he said.
Some owners have resorted to using their own money or seeking out private investors to fund their improvements, according to the National Association of RV Parks and Campgrounds.
Meanwhile, President Obama has addressed the issue with the banking industry and has urged them to make more capital available to credit-worthy small and medium businesses.