Congress says “NOW is the time for an SBA loan”!
June 9, 2021When to Add a Personal Guarantor to a Small Business Loan Application
June 9, 2021Congress recently passed the CARES Act to stimulate a post pandemic economy. While COVID-19 has been disastrous for many small businesses such as restaurants and hotels, the RV park industry appears to be stimulated by vacationers’ desire to enjoy the outdoors. For buyers of RV parks, who close and fully fund their SBA loans before 9/30/2021, the CARES Act provides a federal grant to make their first three loan payments!
Processing an SBA loan application involves several stages and cooperation from multiple individuals. Following are the stages of SBA loan approval and closing for RV park acquisition financing:
- Loan officer prescreens loan request and offers loan terms for acceptance by loan applicant
- Underwriter prepares SBA loan package for approval by bank and SBA.
- Loan applicant signs commitment letter, and appraisal and environmental assessment are ordered.
- Loan closer works with bank’s attorney and title company to prepare loan documents and schedule loan closing.
The above processes usually average 6-8 weeks, so buyers who want to take advantage of the federal grant should submit their SBA loan applications as soon as possible. In the current environment, coordinating the activities of all the above-referenced service providers is likely to experience delays.
Ameris Bank offers the SBA and USDA federal loan programs nationwide for the following RV park/campground owner requirements:
- Business acquisition
- Partner buyout
- Business expansion
- Refinance existing debts for more favorable terms
- Business startup
The SBA and USDA federal loan programs have lower down payments and longer repayment terms than conventional bank loans. Bruce Hurta has been specializing in financing RV parks and campgrounds for over a decade. He is a banker specializing in small business lending for 40 years, with a concentration in SBA lending for 25 years.