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,
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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.
Related Questions
What are the requirements for an SBA 7(a) loan for a funeral home?
The SBA 7(a) loan program is a great option for funeral home owners who want to purchase an existing structure or business, build a new funeral home, or refinance existing business debt. The SBA guarantees up to 75% of SBA 7(a) loans of over $150,000 and up to $5 million. To qualify for an SBA 7(a) loan, borrowers must have a very high credit score and little previous debt. Source and Source.
What are the advantages of an SBA 7(a) loan for a funeral home?
The SBA 7(a) loan program offers several advantages for funeral home owners. These include:
- Funding for all aspects of new construction, including costs such as sprinkler systems, alarms, and other security systems.
- The ability to refinance existing business debt with better terms.
- The ability to purchase an existing building and convert it to a funeral home, or acquire a current funeral home business.
- The SBA's new business acquisition policy allows borrowers to get financing with as little as 5% down, with up to 90% financing allowed, and a 5% seller note.
- The ability to purchase equipment and fund working capital.
In addition, the SBA guarantees up to 75% of SBA 7(a) loans of over $150,000 and up to $5 million.
What are the eligibility criteria for an SBA 7(a) loan for a funeral home?
In order to be eligible for an SBA 7(a) loan for a funeral home, borrowers must have a very high credit score and little previous debt. According to SBA7a.loans, SBA 7(a) loans can be used for building a new funeral home, funeral home refinancing, and purchasing an existing structure or business. Additionally, the SBA's new business acquisition policy allows borrowers purchasing a funeral home to get financing with as little as 5% down, with up to 90% financing allowed, and a 5% seller note.
How long does it take to get an SBA 7(a) loan for a funeral home?
The SBA 7(a) loan process typically takes between 45 and 90 days, depending on the complexity of the loan and the borrower's creditworthiness. The SBA 7(a) loan process involves several steps, including the submission of a loan application, the review of the application by the lender, and the approval of the loan by the SBA. The SBA 7(a) loan process also requires the borrower to provide financial statements, tax returns, and other documents to the lender. The lender will then review the documents and make a decision on whether to approve the loan. Once the loan is approved, the funds will be disbursed to the borrower.
For more information on the SBA 7(a) loan process, please visit https://www.sba7a.loans/sba-7a-loans-small-business-blog/sba-7a-loan-process/.
What documents are required to apply for an SBA 7(a) loan for a funeral home?
In order to apply for an SBA 7(a) loan for a funeral home, you will need to provide the following documents:
- Business plan
- Personal financial statement
- Business tax returns
- Personal tax returns
- Business financial statements
- Business debt schedule
- Business license
- Lease agreement (if applicable)
- Collateral documents (if applicable)
For more information, please refer to the SBA 7(a) Loans for Funeral Homes page.