SBA 504 RV Park Feasibility Study in Minnesota

Minnesota RV parks and campgrounds: first among states under 504

Minnesota is first among states for SBA 504 RV park and campground loans, with 67 approved from FY2017 to FY2026 for $42.0 million, and RV parks come 6 of 39 among Minnesota's classes. Minnesota ranks 1, and the record sits in a handful of counties. The $552,000 median loan comes to 0.96x of the nationwide 504 benchmark; the middle band covers $357,500 to $865,000. Franchises account for 1.5% of loans. In a 504 deal the bank's lien comes first and the development company's debenture sits behind it.

A single development company and its counties

Midwest Business Finance Corporation is the only holder SBA lists for this cell, with 58 loans worth $34.6 million. Cass County has 9 loans, Otter Tail 8, Crow Wing and Saint Louis 7 each, Itasca 6, and Beltrami and Lake of the Woods 3 each. Volume was 18 loans and $10.8 million in FY2022, the peak, then fell to 3 loans in FY2024 and again in FY2025, before 7 loans and $5.8 million arrived in FY2026.

Minnesota campground approvals in the FY2017 to FY2024 window lost at least 7.0% to cancellation, and as much as 8.8% at the ceiling. Across the 30 funded loans in the earlier cohort there is no write-off on record, at 0.00% both so far and inside five years. A cohort of that size is thin, and the rates are floors.

Testing a Minnesota campground request

One code lumps parks, resorts and campgrounds for recreational vehicles together, so a Minnesota study must say which product it is testing, since cabin rentals, full-hookup sites and tent camping earn different revenue. The central question is seasonal demand, so cash flow needs a monthly model, reserves for the off-season, and a downside year with poor weather. The study should count competing parks and lodging, document access and visitor sources, and identify what the park offers that others do not. Land, utilities, septic and shoreline rules deserve a careful review, along with the permits that govern new sites. The appraisal should value land and improvements separately from the operating business. Reservation systems, rates by site type and an off-season use plan, whether storage or winter rentals, should be shown with their own assumptions, since the park cannot rely on high-season income alone.