SBA 504 RV Park Feasibility Study in Texas

Texas is third in the nation for 504 campground loans

Texas has the third-largest count of 504 campground-type loans among states, yet the class is 16 of 39 in Texas itself. The 32 loans total $31.7 million, with a midpoint of $574,000 that equals the national 504 figure at 1.00x. The central half lies between $349,500 and $1.2 million. Franchised loans are 3.1%, so nearly all parks are independent.

Two development companies and a scattered map

Capital Certified Development Corporation leads with 10 loans ($12.7 million); North Texas Certified Development Corporation has 6 ($6.2 million). Both are holders per SBA now. The counties are unusually even: Bastrop, Brazoria, Chambers, Comal, Harris and Hays each have 2, so no region dominates. Years vary from none in FY2019 to 6 in each of FY2020 and FY2025, with the latter carrying $10.7 million.

A mixed code and two empty rates

RV parks, RV resorts and campgrounds are filed under one industry code, so a destination resort and a basic overnight lot are counted together. For Texas, SBA leaves out both the cancellation share and the charge-off share, because the cohorts did not reach its minimum size. A reader should not extend any pattern to the empty rates.

What a Texas RV park study has to test

A 504 loan funds land, site work and permanent improvements, so the study begins with what is built: the number of sites, the mix of pull-through and back-in pads, the utility hookups, roads, and the amenities. Demand differs by setting: the Gulf coast and Hill Country draw leisure travelers and winter visitors, while oilfield and construction areas draw workers on long stays. The study should say which, show the occupancy and rate of nearby parks, and present the nightly, weekly and monthly rate mix. Flood zone, wind and drought risk affect both cost and revenue. Cost the water, septic and electrical service with an engineer's basis, since that work is the major expense. Coverage should be run for a poor season and for a ramp in the first year. Lenders will want the appraisal to show land value under a different use.