Financing from $500,000 for commercial horse properties: boarding and training barns, breeding farms, show and event facilities, equine veterinary properties and the land under them. Underwritten on the operation’s income and the value of the barns, arenas and acreage. Originated by UFIG and placed through its Capital Network of agricultural and SBA lenders.
A commercial equine facility is an operating business on agricultural real estate. Lenders who understand that will finance the barns, arenas, land and residence together and size the loan on what the operation earns. Lenders who do not will value it as a house with a big backyard. UFIG places equine loans with the first kind.
Full-care and self-care boarding barns, 20 to 200+ stalls, with turnout, arenas and client amenities
Indoor and outdoor arenas, covered round pens, lesson programs and trainer-operated barns
Stallion stations, broodmare operations, foaling barns and Thoroughbred, Quarter Horse and sport-horse farms
Competition arenas, covered show rings, stabling for events, rodeo and polo grounds
Equine hospitals, surgery and lay-up barns, rehabilitation and conditioning centers
Working horse ranches, dude and guest ranches, trail-riding outfits with lodging
A horse property for your own use is a lifestyle ranch — see hobby farm loans
New barns, indoor arenas, stall additions, fencing, footing and water on an existing facility
An equine facility has more improvements per acre than almost any other agricultural property: a 40-stall barn, an indoor arena, an outdoor ring, run-in sheds, miles of fencing, wash racks, a residence and often staff housing. A general residential appraiser will give most of that little or no value. An agricultural appraiser with equine experience values the land for its use, the improvements for their contribution, and checks both against what the operation earns. That appraisal is the foundation of the loan, and UFIG orders it from appraisers who have done horse farms before.
Boarding, training, lessons, breeding fees, show income, hay sales and lodging all count. Lenders take three years of tax returns and a current year-to-date statement, normalize the owner’s compensation, and look for net operating income that covers the proposed payment at least 1.25 times. A facility that is full with a waiting list is a different credit from one at 60% occupancy, and the loan is sized accordingly. The sizing tool below shows how stall count and board rate translate into a supportable loan.
Four programs cover most equine deals. Farmer Mac and agricultural banks are the long-term real estate lenders for stabilized farms. SBA 7(a) is the route for an owner-operator buying or building a facility they will run, including the business and equipment, with the highest leverage. Bridge and private capital close fast on a purchase, a build-out or a facility below stabilized occupancy, and are refinanced once the numbers are in.
Typical ceilings on a stabilized commercial equine facility. Final leverage depends on income coverage, the appraisal and the sponsor.
Move the sliders to your facility. The tool estimates annual revenue from boarding alone, applies a typical operating margin, and shows the loan that income can carry at a 1.25x coverage ratio next to the loan the property’s value allows. The lower of the two is what a lender will offer; the gap tells you whether your deal is income-limited or value-limited.
| Item | What it tells the lender |
|---|---|
| 3 years of business and personal tax returns | Trend in revenue and margin; owner compensation; global cash flow |
| Current board roster and rate sheet | Occupancy, concentration, pricing versus the local market |
| Boarding, training and lease contracts | Revenue durability and the business behind the barn |
| Stall count, arena sizes, acreage, fencing, water | Improvement value and carrying capacity for the appraisal |
| Insurance (care, custody and control; liability) | Coverage for horses you do not own |
| Purchase contract or payoff, plus a capital plan | Use of proceeds; construction or PIP budget if any |
| Résumé of the operator | Experience is weighed heavily on equine credits |
Purchases of an operating facility are the most common request and the cleanest to place: three years of someone else’s numbers and an appraisal. New construction and major expansions, a new indoor arena or a second barn, are financed on cost with draws against a budget, and lend themselves to SBA 7(a) for owner-operators or bridge capital refinanced on completion. Refinances replace a maturing loan or a seller note, or pull cash out of a facility whose value has grown, at up to 70% of current value on a stabilized operation.
UFIG arranges equine facility financing in all 50 states through a Capital Network of Farmer Mac sellers, agricultural banks, SBA lenders and private capital. Kentucky, Florida, Texas, Pennsylvania and the Mid-Atlantic, the Carolinas, California and the Mountain West are the most active equine markets we see; because UFIG works with lenders already active in the county, a facility in a smaller horse market is still financeable.
Stabilized horse farms price off the Farmer Mac and agricultural bank rate sheets; owner-operated purchases through SBA 7(a) price over Prime; bridge capital is priced for speed. The current Farmer Mac fixed and variable rows are on our agricultural rate sheet, and every program is on today’s commercial mortgage rates.
One loan officer, one file, an appraiser who has valued horse farms before. Here is how an equine loan moves from first call to the closing table.
The short form or a phone call: stalls, acreage, what the operation earns, and what you need the loan to do.
Your loan officer runs the income and value tests above on your real numbers and tells you what the loan can be.
Farmer Mac, ag bank, SBA or bridge: we package the file for the lender that fits and deliver a written quote.
An equine-experienced appraiser, underwriting and closing managed by the same officer. Typically 45 to 60 days.
Call during business hours to speak with an equine lending specialist, or submit your facility for a 24-hour review. UFIG originates, underwrites and delivers your loan through its Correspondent Lending channel, or places it through its Capital Network when that gets you better terms.
Horse farm loans and equine facility financing for boarding stables, training and lesson barns, breeding farms, show and event venues, equine veterinary and rehabilitation properties and horse ranches in all 50 states, from $500,000. UFIG originates and places equine loans through Farmer Mac sellers, agricultural banks, SBA lenders and private capital, and arranges agricultural loans, hobby farm loans, SBA 7(a) loans and bridge loans. Call (888) 556-4029.
