RV Park Feasibility Study in North Carolina

Big loans for a small class

North Carolina's RV park and campground loans are few but large. SBA approved 28 of them from FY2017 to FY2026, worth $37.4 million, and the median loan of $905,500 is 1.29x the national median for the class, with a middle half running from $398,500 to $1.8 million. That points to land purchases and park build-outs rather than equipment. The state ranks 11 of 47 for the class, while the class holds 22 of 39 among North Carolina asset classes; a location quotient of 1.40x means RV parks claim a bigger slice of North Carolina lending than the national mix would suggest.

Mix of programs, and two banks

Of the 28 loans, 26 ran through SBA 7(a) and 2 through SBA 504, and franchise loans are 7.1%. Two lenders stand out. First Community Bank holds 6 loans worth $3.5 million, and Live Oak Banking Company 5 worth $13.3 million, an average far above its peer. The holder shown is the current one in SBA's file, so these are books held, not statements of policy. The mountain and Piedmont split is visible in the counties: Randolph has 5 loans, Surry 4, Buncombe 3, and Carteret and Swain 2 each.

A lumpy record

Approvals have been uneven. There were no loans in FY2018 or FY2022 and only 1 in FY2019 and FY2023, but FY2024 brought 9 loans and $11.2 million, and FY2026 added 5 for $7.9 million. A single project can dominate a year, so a borrower should avoid reading a trend into so few loans.

Floors and the shared code

This cell publishes neither floor, the cohorts being small: SBA's two loss rates for it are held back, and held back is not zero. The industry code is shared: RV parks, RV resorts and campgrounds all sit under one code, so the record mixes a seasonal tent campground with a full-service resort.

Testing a North Carolina RV park

A feasibility study for an RV park in North Carolina has to test seasonality first: occupancy by month, the length of stay, and the share of sites that are transient, seasonal or long-term. It should check the cost of utilities, roads, sites and amenities against a loan that is typically near a million dollars, the zoning and septic or sewer capacity, and flood exposure in a state where storms can close a park. Coverage of the loan payment should be tested on off-season revenue, and the appraisal should value land, improvements and the operating business separately.