Can the funeral home apply for assistance if they have been appointed by the court as the preferred creditor?

No. Section 408(e)(1) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act) does not recognize funeral homes or other businesses as eligible recipients of federal funds under the Individuals and Households Program. FEMA will not provide COVID-19 Funeral Assistance funds to states, tribes, territories, businesses, organizations, and other entities.