Starting an Assisted Living Facility: Funding Basics and Options

A Woman In Assisted Living Baby boomers born between 1946 and 1964 make up a huge part of the American population. Recent projections state that by 2060, Americans aged 65 and older will reach 98 million. That’s more than double the 46 million 65-year-olds living in 2016.

Elderly care, therefore, is necessary more today and in the future. While many members of the baby boomer generation choose to live at home and receive elderly or medical care privately, there are also those who need 24/7 care in a proper facility. This means this is as good a time as any to start an assisted living facility business.

Here’s how to get funding for your new endeavor:

Know how much money you need.

Your new business is certain to entail considerable costs, so getting funding is important. To make sure you have the data to support your application for a loan, factor in the size of the facility you want to open, number of staff members, and amenities for elderly comfort and care.

Consider grants.

You may want to apply for a grant. Go to the website of the U.S. Small Business Administration and see if you are eligible for one. Your work history and the size of the business are important when trying to apply for a grant.

Get a HUD loan.

Most people think a HUD loan is only for homes. There is, however, such a thing as HUD commercial loans. The U.S. Department of Housing and Urban Development also offers loans insured by the Federal Housing Authority (FHA) for assisted living facilities, among others. You may apply for such a loan whether you are buying, refinancing, rehabilitating, or constructing the facility.

If you’re looking for an investment, consider an assisted living facility. The country needs more of these facilities to care for baby boomers today and in the near future.