How do I Secure Funds to Start a Campground Business?

Starting a campground business can be a highly rewarding venture for entrepreneurs who love nature and outdoor activities. Campgrounds offer a low-cost and high-demand alternative to traditional accommodation options, and they appeal to a wide range of customers, from families to retirees to young travelers. 

Campground demand is at an all-time high in 2023. In the last two years, more than 15 million Americans went camping for the first time, while finding a free campsite in 2022 was five times more difficult than it was only three years ago, according to campers. 

However, starting a campground business is not without challenges. One of the main hurdles that aspiring campground owners face is securing funds to launch or grow their businesses. Finding a suitable location, building the infrastructure, and complying with regulations can be costly and time-consuming. 

That’s why in this article, we will provide you with information on different types of funding, with a focus on grants for starting a campground. Grants are a type of funding that does not need to be repaid, unlike loans or equity. They can help you reduce your financial burden and achieve your goals faster. 

By the end of this article, you will have a better understanding of how to secure funds for starting a campground business, and how to make your dream come true.

What are the Common Types of Funding for Starting a Campground?

To start a campground business, you need capital to cover the initial expenses, such as buying or leasing land, building or renovating facilities, obtaining permits and licenses, and marketing your business. Depending on your financial situation and goals, you may choose one or more of the common types of funding for starting a campground business below.

Personal Savings

The simplest and most accessible way to fund your business. you don’t need to apply for a loan or share equity with anyone. You can use your own money from your savings account, retirement account, or other assets to start your campground business. 

The downside is that you are putting your personal finances at risk, and you may not have enough funds to cover all the costs or unexpected emergencies.

Bank Loans

This is a traditional way to borrow money for your business, as you can apply for a loan from a bank or other financial institution and receive a lump sum of money that you have to repay over a fixed period of time with interest. The drawback is that bank loans have strict eligibility criteria and require collateral, such as your property or equipment.

Guaranteed Loans From the SBA

This is a way to access bank loans with more favorable terms, as the Small Business Administration (SBA) acts as a guarantor for loans that are made by commercial lenders. SBA-guaranteed loans are widely used by entrepreneurs because they feature lower down payments, longer repayment terms, and easier qualifying criteria than conventional bank loans.

Angel Investors

In this option, you pitch your idea to individuals who are willing to invest in your business in exchange for equity or a share of the profits. Angel investors can offer valuable advice, connections, and mentorship, as well as access to more funding opportunities. 

Take into account that angel investors usually have high expectations and may demand a significant stake in your business or influence over your decisions.

Friends and Family

This is a common way to get financial support for your business, as you can ask your friends or family members to lend or donate money to help you start your campground business. Friends and family can offer flexible and low-cost funding, as well as emotional support and encouragement. 

Each type of funding has its pros and cons, and you should weigh them carefully before choosing the best option for your situation. You should also consider how much money you need, how quickly you need it, how long you can repay it, and how comfortable you are with sharing ownership or control of your business.

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What are Grants for Starting a Campground and Why Are They Useful?

 

Grants are a type of funding that does not need to be repaid, unlike loans or equity. They are usually awarded by government agencies, foundations, or other organizations to support specific projects or causes that align with their missions and goals. 

Grants for starting a campground can be a valuable source of funding for your business, as they can offer several benefits, such as:

• Reducing financial risk: Covering some or all of the costs of starting your campground business, without adding to your debt or diluting your ownership. This lowers your financial burden and increases your chances of success.
• Increasing credibility: Demonstrating that your campground business has a positive social or environmental impact and that it meets the standards and expectations of the grantors. This can boost your reputation and attract more customers, partners, and investors.
• Supporting the impact: Achieving your goals and vision for your campground business, and contributing to the common good. For example, grants can help you preserve natural resources, enhance recreational opportunities, educate visitors, or create jobs in your community.

However, grants are not easy to obtain, as they are highly competitive and selective. You will need to do extensive research, planning, and reporting to apply for and manage grants for your campground business.

Many grants for starting a campground are available, depending on your location, eligibility, and objectives. 

Institutions like the USDA Forest Services and the NRPA offer grants that support forest conservation, provide financial assistance for recreational trail development and maintenance, or help fund green infrastructure projects in parks that improve environmental and social outcomes. 

You can get government grants for starting a campground, loans, or tax benefits from both Canada and the United States. Visit grants.gov if you are in the US and see what works best for you.

Funding for Growth: Investing to Stand Out in the Campground Industry

 

The need for funding goes beyond launching your campground. After starting your business, you will have to invest regularly to adapt to the market changes. But getting money to build or improve amenities is one of the main challenges campgrounds are facing today. 

This is the reason why Roverpass created Capital Lending, a finance solution that helps RV park owners get the funds they need to grow their businesses. Just by meeting a few requirements, you can easily apply online and compare different small business loan options.

For more insights on how to build and run a successful RV park business, keep reading our blog!