Can a hotel, campground or short-term rental get an SBA loan?
Short answer
Yes, if more than 50% of prior-year revenue comes from guests staying 30 days or less. The business must also meet zoning and other legal rules. A start-up must show that result in its projections. Source: SOP 50 10 8.1, Sec. A, Ch. 1, Para. E.3.
Yes, if the business mainly serves transient guests. SOP 50 10 8.1, Sec. A, Ch. 1, Para. E.3 sets a two-part test. It covers hotels, motels, recreational vehicle parks, marinas, campgrounds and similar businesses.
The test
- More than 50% of prior-year revenue comes from transients who stay 30 days or less at a time.
- The business complies with all zoning and other legal requirements.
A start-up must show the same 50% result in its projections.
Short-term rentals
Rentals of residential or commercial space must comply with all local laws, zoning codes and homeowners' or condominium association rules. That applies whether bookings come through an internet platform or directly from the owner.
Why the 30-day line matters
A business that mainly houses long-term residents falls under the landlord rule in 13 CFR § 120.110(c). Apartment buildings and mobile home parks are not eligible. Neither is a residential facility that lacks a nursing home or assisted living license and provides no healthcare or medical services.
What to prepare
Pull a revenue report that shows length of stay. Confirm your zoning and licenses. SBA's rule covers eligibility only. Each lender decides whether it will finance the property and sets its own requirements.
Ask lending partners about your loan
Tell us the amount you need and what it is for. We refer you to lenders that may fund businesses like yours, and it costs you nothing.
Janover Capital LLC is not a lender and is not the SBA. The lender makes the credit decision. A lender or marketplace may pay us a referral fee if we connect you, at no cost to you. Advertiser disclosure.