SBA 7(a) RV Park Feasibility Study in Michigan

Michigan campgrounds: third among states, low at home

On RV park and campground lending Michigan holds third place among states, though the class holds a modest 24 of 39 within Michigan itself, which tells us the state is a leading user of this niche though not a big one overall. SBA recorded 31 approvals worth $25.7 million. A median of $515,000 is 0.63x the nationwide level, and most loans run from $262,250 to $1.1 million. Franchising is 9.7%. No other metric clears our margin; rank is the cell's distinguishing fact, backed by a diffuse map of counties.

The Huntington and a scattered map

In the lender table only The Huntington National Bank appears, with 9 loans and $4.5 million in SBA's current-holder file. Cheboygan County has 4 loans, Gratiot 3, and Clare, Dickinson, Ottawa, Roscommon, Saginaw and Van Buren 2 each, so the class is spread from the north woods to the farm country. Approvals fell to a single loan of $256,000 in FY2023 and none in FY2026, while FY2017 carries 3 loans and $6.6 million and FY2025 4 loans and $4.9 million.

Cancellation and charge-off figures are absent, with too few loans behind them to print. They are not zero.

Seasons, sites and the code

One code serves RV parks and campgrounds, so a nightly resort and a campground of seasonal sites are alike in these totals, and a study should say which model it follows. Michigan's tourist season is short and weather-dependent, so revenue must be built by month from occupancy, rates and add-on income, with a clear picture of the shoulder months. Land and site work make up most of the cost: roads, electrical hookups, water and sewer or septic, restrooms, and any shoreline. Zoning, wetlands and permits can delay opening, so a timetable and carrying cost are needed. Competing parks, and the draw of lakes, trails and attractions near the site, define demand. A conservative case with a wet summer should still cover the debt. Valuation will split land and improvements from the operating business, and the study must show who will staff the park, how reservations are taken, and what amenities such as a camp store, laundry or rental units add to income.

The record shows a drop from $6.6 million in FY2017 to $256,000 in FY2023, which tells a reader that campground lending is lumpy. The study should therefore set its assumptions from the specific site and season rather than from any state average, and should explain how the park will fill in the first two summers.