Can You Get an SBA 7(a) Loan for a Funeral Home?

In 2017, the funeral home industry employed approximately 120,000 people across the United States, while taking in more than $15 billion in revenue. If you currently operate a funeral home or are considering opening one, the SBA 7(a) loan could be a fantastic option. In addition to funeral homes, SBA 7(a) loans can also be used for similar businesses, such as cremation centers and cemeteries.

How does SBA 7(a) Financing Work for Funeral Homes?

Whether you want to purchase an existing funeral home or expand a current one, the SBA 7(a) and SBA 504 loan programs both function effectively as loans for commercial real estate. The SBA, or Small Business Administration guarantees up to 75% of SBA 7(a) loans of over $150,000 and up to $5 million. 

In particular, SBA 7(a) loans can be used for:

  • Building a new funeral home: SBA 7(a) loans can fund all aspects of new construction, including costs such as sprinkler systems, alarms, and other security systems.

  • Funeral home refinancing: If you currently own a funeral home, and have business debt that you’d like to refinance with better terms, an SBA 7(a) loan can also help you do that.

  • Purchasing an existing structure or business: SBA 7(a) loans can be used for either purchasing an existing building and converting it to a funeral home, or, acquiring a current funeral home business. And, with the SBA’s new business acquisition policy, borrowers purchasing a funeral home can get financing with as little as 5% down, with up to 90% financing allowed, and a 5% seller note.


We’re here to help you get the commercial financing you need. Contact SBA7(a).Loans today to arrange your risk-free, personal consultation, or, simply Click the button below to apply with our partners at lendio!