Government program may help RV park owners finance improvements
A little-known government financing program may provide loans for RV park owners who haven't been able to secure financing for improvements and expansions during the recession.
The U.S. Department of Agriculture's (USDA) Rural Business Guaranteed Loan Program typically provides up to $10 million in funding for rural businesses that need loans for a variety of reasons, including refinancing, repairs, modernizations, development and expansions.
These are the types of loans many RV park owners have said they've had a hard time securing during the financial downturn.
"This program is good for a campground in a community with a population of less than 50,000 that is financially sound and has the market and the land to expand and just needs the funding to make it happen," said Bill Garpow, executive director of the Recreational Park Trailer Industry Association (RPTIA). "You can also use this kind of funding to purchase recreational park trailers and put them into a rental program. You could also use it to refinance the whole park and reduce your monthly cost of operations. USDA is particularly interested in projects that could provide additional jobs."
Garpow says that the USDA is still making these loans but that applicants should be prepared for a longer loan process since it involves both a bank and the USDA.