Mar 14, 2022
The demand for funeral homes and cemeteries that plan memorials and prepare the deceased for inter mentor cremation has surged due to the number of deaths during the Covid-19 pandemic. The same trend is anticipated to continue in the future as well because the aging population reaching their end of life is also increasing at a substantial rate.
According to the U.S. Census Bureau, the nation’s population of 65 and older has increased at a faster rate since 2010. This rapid increase is driven by the aging of baby boomers (population born between 1946 and 1964).
All of this points to one thing: businesses that operate funeral homes and cemeteries may need to expand, acquire a new location, add more cemeteries, or extend the building to cater to the increasing demand for funeral and cemetery services. All of such plans require proper financing. Fortunately, these businesses can obtain loans for funeral homes& cemetery through SBA financing.
Still, many funeral homes and cemetery businesses are skeptical of buying more cemetery land or funeral homes. So, let’s take a look at why funeral homes and cemeteries need to expand and invest more in their business.
After going through 2020 and 2021, most businesses had to redevelop their business models to adapt to the tectonic shift and meet the changing business realities. At present, businesses need to meet their consumers where they are. The same goes for funeral businesses and professionals.
According to experts, this industry will continue to experience increased levels of interest in the pre-need and burial arrangements as more people are becoming aware of the fragility of life and the desire to make sure that their loved ones are taken care of financially and emotionally.
With the dramatic shift in the consumers’ behavior, relationships between people and businesses are becoming more important than ever. Consequently, funeral homes, cemeteries, and similar businesses will need to redefine why they should be the preferred choice and how these businesses can better serve people in their communities.
The U.S. Small Business Administration(SBA) aims to help small businesses in the United States to expand and grow successfully. However, the SBA, itself, is not a lender. It provides a guarantee that enables approved SBA lenders to take on the risk of lending and decisions, which they don’t do ordinarily.
While both the SBA 7(a)and SBA 504 loan programs can be used for commercial real estate, the SBA 7(a) loans particularly can also be used for the following purposes:
· Building a new funeral home
· Funding the installation of safety systems, such as sprinkler systems, alarms, and security systems
· Refinance a previous business debt with better terms
· Buying an existing building and transforming it to a funeral home
· Acquiring a current funeral home business, and more
Are you ready to take your funeral home & cemetery business to the next level? Contact us to know your loan options.
