Financing Golf Course Improvements in California

Golf is a timeless sport played by over 20 million people a year in the United States. Due to the abundance of golf courses and a saturated market, it is crucial for courses to maintain a top-notch golfing environment. California alone has close to 1,000 golf courses. If your course is lacking – golfers will seek out a neighboring course. This means it is imperative to say competitive by investing in and continuously improving your facility. The problem is that improvements can be expensive and obtaining proper financing for golf course improvements in California can be tricky!

Golf course lenders can be difficult to find – some may only lend in specific regions, some require strong financial records, and some just might not want to lend money for a single use property.  However, if you are in need of financing for a golf course in California, you have come to the right spot.

The SBA 504 Loan for Golf Courses

The SBA 504 Loan was created for small business owners of most shapes and sizes. It’s a program that allows business owners to purchase or improve real estate for their businesses. The program features a low down payment (15% for golf courses) and highly favorable terms. The interest rate is below market and fixed for 25 years.  The business must be for-profit and must occupy at least 51% of the premises to qualify.

This loan program is perfect for golf courses since single use properties can be difficult to secure financing for. Banks are often reluctant to loan money for golf courses and may have stricter terms due to the specific nature of the business. With the way the 504 loan is structured however, lenders have a more favorable loan-to-value ratio and therefore more willing to work with golf courses. The SBA backing helps too!

Golf course owners can use a 504 loan to purchase an existing golf course facility, to improve a golf course they already own, or even to build a brand-new facility. In addition, equipment with a service life of over 10 years can be financed with the 504 loan.  With no limit to project cost and $5 million in SBA funding – you can create the polished, uniquely-designed golf course you desire, as well as invest in equipment such as golf carts, ball washers, clubhouse equipment, and more.

While new courses are on the decline, renovations are still a popular trend and you can expect much more improvements in the years to come. According to, in 2018 $210 million was spent on new golf course construction, $1.9 billion was spent on existing facilities, and $6 billion was spent on golf equipment sales.

If you are a current owner of a golf course and want to bring it to the next level, contact us so we can figure out how the 504 loan can help you.

About TMC Financing

TMC Financing is the top Certified Development Company in California and Nevada. If you are thinking about buying your own commercial property in California or Nevada, talk to one of our local 504 loan experts. Regardless of where you are in the process—whether you have a property picked out or are just hearing about the 504 option for the first time—TMC Financing can help guide you through the next steps, from the prequalification process through the duration of your loan.