RV Park Feasibility Study in California

California RV parks: a big state that barely uses the program

California shows 37 RV park and campground loans from FY2017 to FY2026, with $50.9 million approved. The state ranks 7 of 47, yet the class is only 30 of 39 among those financed in California, and the location quotient of 0.32x says the state's share is far below the national share. Land cost, coastal and environmental rules, and a market for park conversion may explain why borrowing is light, though the data cannot tell us. The median loan of $892,500 runs 1.27x the national figure for parks, and the core of California's file ranges from $491,400 to $1.8 million.

Cancellation is the distinctive metric

The cancellation floor is 28.1% for FY2017 to FY2024 approvals, and the ceiling is the same 28.1%. A large share of approved California park loans did not close, which is well above most cells. Permits, entitlements, water and septic approvals and environmental review can stall a campground project long after a bank approves a loan. California RV parks lack 30 seasoned loans, so the charge-off figure stays blank and does not imply zero.

A single code covers RV parks, RV resorts and campgrounds. A glamping resort, a seasonal campground and a long-stay RV community are one line in the data, but their revenue models differ. The program mix is 26 SBA 7(a) loans and 11 SBA 504 loans, and the franchise share is 5.4%. No lender reaches 5 loans, so lending is scattered among many institutions, and county counts are small: Riverside shows 5, Trinity 4, and Mono and San Bernardino 3 each.

What a California study must test

The first test is entitlement: zoning, use permits, water rights, septic capacity and fire access, since these decide whether a park can be built or expanded. Demand must be modeled by season and by occupancy of comparable parks, including the split between nightly and long-stay guests. Cost has to cover utilities, hookups, roads and pads. Plan the coverage test around a ramp that reflects a short or weather-limited season. The appraisal must value land and improvements separately and say what the property is worth without the business. Volume is thin and steady: 6 loans in FY2021, 5 in FY2022 and FY2023, which carried $11.6 million in FY2023, then 2 loans each in FY2024 and FY2026.