The environmental trigger worth checking before you sign
When commercial real estate is offered as security for a 7(a) or 504 loan, by a security interest such as a mortgage, deed of trust or leasehold deed of trust, the lender must compare the NAICS codes for "the Property’s current and known prior uses" with Appendix 6 of SOP 50 10 8.1, SBA's list of environmentally sensitive industries (a unit in a Multi-Unit Building, meaning a non-industrial building of four or more units, is excepted from that step). Casket making is on the list under miscellaneous manufacturing, not furniture: the Census Bureau's 2022 NAICS index files "Caskets, burial, manufacturing" under 339995, which SBA's size standards table (13 CFR 121.201) titles Burial Casket Manufacturing. The entry for 339, with its condition as printed:
339 MISCELLANEOUS MANUFACTURING (only required if hazardous materials are involved)
For a casket maker the bracket is about hazardous materials, not finishing. The condition "if finishing occurs on site" is printed against 321 Wood Product Manufacturing and 337 Furniture and Related Manufacturing, and neither is the casket code. The SOP uses the words hazardous materials only in this entry and does not define them; the nearest defined term, in Appendix 4, is Hazardous Substance, "any substance, material or waste regulated by CERCLA or any other Environmental Law, and specifically includes petroleum products". On our reading, the fact to pin down is what your stains, lacquers, thinners, adhesives and metal coatings are and how they are stored and disposed of. Confirm your NAICS classification with your lender rather than assuming.
For a casket startup the bracket is the difference between two starting points: a loan no larger than this page's $40,000 to $250,000 startup range is at or under the amount up to which an investigation with no Appendix 6 match "may begin with an Environmental Questionnaire", while a match means it "must begin with a Phase I, regardless of the amount of the loan". A match can also come from the building's history, such as a furniture maker that finished on site (337) or a printer (323); our SBA environmental requirements guide has the thresholds and all 55 entries.
This is worth settling before you commit to a site, not after. You can also check your equity position with our free SBA equity requirement calculator.
Frequently asked questions
How much does it cost to start a coffin manufacturing company?
A small coffin manufacturing company typically costs $40,000 to $250,000 all-in. A lean wood-only workshop can be built for under $75,000; adding metal casket fabrication, a larger facility or more inventory pushes toward the higher end.
Do you need a special license to make and sell caskets?
In most states, no. A few states have required a funeral director's license to sell caskets. Federal appeals courts struck that requirement down in Tennessee and Louisiana but upheld Oklahoma's in 2004, so check your own state. You still need a standard business license, an EIN, and a state sales tax permit.
Can a funeral home refuse to use a casket I sell directly to a family?
No. Under the FTC Funeral Rule, a funeral home cannot refuse to accept a casket bought elsewhere or charge a handling fee for using it. This is the legal basis for the direct-to-consumer casket business model.
Is a coffin manufacturing company profitable?
It can be. Industry data shows roughly a 10% net margin, with a casket costing about $1,000 wholesale typically marked up around 1.5x to $1,500 retail. Profitability depends on production volume and whether you sell wholesale, direct-to-consumer, or both.
Is coffin and casket manufacturing a growing industry?
It is a small, stable industry rather than a growth one. IBISWorld estimates about $718.7 million in US revenue in 2025 across roughly 65 manufacturers, with revenue slightly declining in recent years as large incumbents consolidate share.
Reviewed by Muhammad Tayyab Shabbir, Founder of AVVALE. Our team has prepared funding documents for 500+ businesses across regulated, capital-intensive and main-street industries, from SBA and bank loans to investor and visa applications.
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Sources: IBISWorld, Coffin & Casket Manufacturing in the US industry report (2025 revenue $718.7m, 65 businesses, declining CAGR); Federal Trade Commission, Funeral Rule and Complying with the Funeral Rule guidance (third-party casket acceptance, average casket cost slightly more than $2,000, penalties up to $53,088 per violation); Institute for Justice case records, Saint Joseph Abbey v. Castille (5th Circuit, 2013), Craigmiles v. Giles (6th Circuit, 2002) and Powers v. Harris (10th Circuit, 2004); Oklahoma Funeral Board, Funeral Services Licensing Act (effective 1 July 2025); The Foresight Companies funeral-industry consulting analysis (casket wholesale-to-retail markup, ~10% industry net margin); Titan Casket and industry retailer pricing pages (direct-to-consumer casket pricing, wholesale vs retail structure); OSHA wood dust standards (29 CFR 1910.1000) and NFPA 664 combustible dust guidance; SBA SOP 50 10 8.1, effective 1 October 2026 (uses of proceeds: Section A, Chapter 3; Environmental Investigations: Section A, Chapter 5, with Appendices 4 and 6; debt service coverage: Section B, Chapters 1 and 2, Section C, Chapter 1 and Appendix 15; 504 debenture limits: Section C, Chapter 1), the U.S. Census Bureau 2022 NAICS index and 13 CFR 121.201, each retrieved 11 October 2026. Figures are industry ranges for planning; confirm current costs and your state's rules before filing. The SBA points are general information, not lending or environmental advice; confirm them with your lender.