Straight Answers.
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Not marketing language. Not vague reassurances. Just what 20 years of structuring funeral home transactions actually looks like.
"No brokers. No upfront fees. A real conversation — no obligation."
Loan Terms & Rates
SBA 7(a) loans for funeral home acquisitions typically have repayment terms of 10 years for business-only transactions and up to 25 years when real estate is included. Interest rates are variable and tied to the prime rate plus a spread — currently in the range of 7% to 10% depending on the deal structure and lender.
Conventional commercial loans typically have shorter terms — five to ten years — with either fixed or variable rates and balloon payments at maturity.
Terms vary significantly based on the transaction, the lender, and the borrower's profile. What matters more than rate is whether the loan structure actually fits the business.
Most funeral home acquisitions that come through lenders fall in the $500,000 to $3 million range. Smaller single-location businesses in rural markets often fall between $300,000 and $800,000. Established multi-location operations or businesses with real estate in major markets can reach $5 million or more.
The loan amount is determined by what the business cash flow can support in debt service — not by the asking price alone.
Funeral homes have a unique combination of assets that general business lenders struggle to underwrite. A significant portion of most funeral home transactions is goodwill — reputation and community relationships that have no liquidation value. Call volume, pre-need contracts, and management continuity all factor into underwriting in ways that do not apply to most other businesses.
Most SBA lenders and conventional banks who work with funeral homes have specific experience with these factors. General business lenders often do not — and that creates problems at the underwriting stage.
Qualifying & Requirements
Most SBA lenders look for a personal credit score of 680 or above. Some conventional lenders prefer 720 or higher. Below 650 is difficult but not impossible depending on the strength of other factors — equity, experience, and business performance.
The score is one input. Your full credit history, pattern of payment, and any explanations for past issues are evaluated alongside the number itself.
The core package includes three years of personal tax returns, a personal financial statement, a professional background summary or resume, three years of business tax returns and financial statements for the funeral home, call volume history, and a signed letter of intent or purchase agreement.
Additional items — environmental reports, business appraisals, real estate appraisals — come later in the process. The initial package is what gets you to credit approval.
Not always. But it helps.
Lenders want to see that the buyer can actually operate the business after closing. Funeral industry experience is the clearest proof of that. Management experience in a related field, a strong operational plan, or a retained key employee can substitute in some cases.
First-time buyers without direct industry experience face more scrutiny — and need to work harder on the experience and plan portions of their application.
Yes. The SBA 7(a) program is the primary government-backed option. It is not a direct loan from the government — it is a loan from a federally insured bank with an SBA guarantee that reduces the lender's risk and allows for longer repayment terms and lower equity requirements.
The SBA does not lend money directly. It guarantees a portion of the loan, which allows lenders to finance transactions they otherwise could not or would not.
Read the full breakdown of SBA vs conventional funeral home loans →
It depends on how bad and why.
A credit score below 650 with unexplained derogatory marks, recent bankruptcy, or unresolved judgments is very difficult to overcome. A score in the 620 to 650 range with a clear explanation, strong equity, and a well-performing business is more workable than most people assume.
The honest answer is: get the conversation started early. Do not assume a no before you have spoken with someone who actually works in funeral home lending.
The most common disqualifying factors are recent bankruptcy within three years, unpaid federal or state tax obligations, unresolved judgments, an asking price the business cash flow cannot support in debt service, and equity that cannot be documented or sourced.
None of these are automatic in every situation. But they all require honest conversation before you make an offer — not after underwriting surfaces them.
Loan Process & Timeline
From a complete loan application to credit approval typically takes two to three weeks. From credit approval to closing typically takes another four to eight weeks depending on third-party reports, the purchase agreement, and any conditions that need to be satisfied.
Total time from letter of intent to closing is typically 60 to 90 days when the process moves smoothly. Delays most often come from incomplete financial information, a purchase agreement that takes longer than expected to finalize, or third-party reports that run long.
The lender reviews your complete package and submits it to underwriting and a credit committee for approval. They are evaluating cash flow and debt service coverage, your experience and operational plan, equity source and structure, collateral, and overall credit risk.
If approved, you receive a commitment letter. From there the closing phase begins — third-party reports are ordered, the purchase agreement is finalized, and the loan moves toward SBA authorization and closing.
A letter of intent is a non-binding agreement between buyer and seller that outlines the key terms of the transaction — price, structure, timeline, and any major conditions. Most lenders will not begin underwriting without one because it confirms the deal terms they are financing.
An LOI is not a guarantee that the deal closes. It is the starting point for the formal financing process.
In some cases, yes. A seller note — where the seller carries back a portion of the purchase price — can sometimes satisfy part of the equity requirement if the lender approves the arrangement and it is properly subordinated to the bank debt.
Not every lender allows this. Those that do have specific requirements for how the note must be structured. It is worth asking early in the process — not after credit approval.
Refinancing
Yes. Funeral home owners refinance for several reasons — to improve their interest rate, access equity in the real estate, consolidate debt, or restructure the loan ahead of a sale or ownership transition.
The underwriting for a refinance is similar to an acquisition — lenders will review current cash flow, existing debt, property value, and your payment history on the existing loan.
In certain situations. SBA refinancing is typically available when the existing debt is on unreasonable terms, when refinancing is necessary for the viability of the business, or when the refinance is being done alongside an expansion project. Pure rate-and-term refinances of existing SBA debt are more restricted.
The specific circumstances matter. It is worth a direct conversation to determine whether SBA refinancing applies to your situation.
What Funeral Home Owners Say
Real reviews from licensed funeral directors across the country
"Matt is ethical, professional, and knowledgeable. He spent over an hour on the phone with me on my very first call."
"As a first-time buyer, I had no idea what to expect. Matt walked me through every step with patience and professionalism."
"Matt helped me obtain a loan which seemed impossible at the time. He helped make my business ownership dream come true."
"Matt's personal knowledge of funeral service, combined with his banking and loan experience, made the financing process smooth and efficient."
"As a first-time business owner, getting initial financing for my funeral home was very challenging. When I connected with Funeral Home Loan, I knew I was in the right hands. The team was patient, took time to understand my business and my vision, and guided me through every step of the funeral home loan process."
"Working with Matt at Funeral Home Loan was nothing short of incredible. Before meeting Matt, I had been turned away several times. With his deep expertise in funeral home loans and SBA financing, he found a way to make it work."
"I have worked with Funeral Home Loan on two separate acquisitions, and both experiences were outstanding. Their expertise in funeral home financing and industry-specific financials is top tier."
Still Have a Question?
Call Directly.
Preparation — knowing what lenders need, having it organized, and starting the conversation before you need the money — is what separates transactions that close from ones that stall. No forms. No fees. No obligation.
Matt works directly with funeral home owners and buyers — no brokers, no middlemen, no call centers. Every question gets a real answer from someone who has structured these transactions for over two decades.
