But it refuses to back down and retreat.

You were smart to engage a contractor who will re-treat. 

We bought this land for $40k with the dream of building a treehouse-style log cabin, intended as a nature retreat for vacation renters.Originally, we planned a small treehouse, but NY state building codes required us to go bigger, resulting in a 1200 sq-ft design 2-bed 1.5 bath.

They had land about 15 minute outside of Park City, UT that they were developing into a whole ranch resort, corporate retreat, etc.  

I'm thinking horses, healing retreats, events, some small houses....I know, I probably should have gotten 40 acres lol.....I am just bubbling over with the excitement of owning dirt!! 

While you do have some options, from basic research, I am not sure you are going to find anything below 20% down on an SBA loan.Anecdotally from talking with friends in the business and from a prior role where the company was trying to finance a corporate retreat hotel (admittedly in 2012), the financing of hotels in general seems very, very hard.  

No need to throw away the value of this experience by retreating.

A couple weights and yoga mats with a mirror, nothing crazy. 

It would be an awesome spot for family reunions, weddings, celebrations, masterminds, corporate retreats, etc.

They’re doing really well catering to the mountain retreat/nomadic worker crowd and skiers coming to Eldora, not so much gamblers from Black Hawk/Central City.