The world is aging. That’s a fact. By 2060, about 24% of Americans will be aged 65 or older—and 70% of them will need long-term care. By 2056, there will be more people over the age of 65 than under age 18.
Improved technology and healthcare are making it an exciting time of longevity with better care for every stage. But the aging population also brings with it a variety of challenges, including how to provide the best long-term care for America’s senior population. In response, the assisted living industry is growing fast. By 2030, nearly 2 million adults will be living in senior care or assisted living facilities.
Assisted living facilities are looking up
In the still-recovering economy, assisted living facilities are faring better than many industries because of the great value they provide. As more parents and grandparents age, and they and their children recognize the importance of quality care and long-term housing, assisted living facilities are poised to move upward.
In light of that, the global elder care market is expected to top $1,767.3 billion by the end of 2025. Assisted living facilities will make up the largest segment, owning 75% market share. For savvy entrepreneurs looking to start a business, statistics show that industry growth makes today a great time to launch, expand or revamp your dream.
Answering the big questions about joining the assisted living facility economy
Like any business, there are a number of things to consider as you begin to think about launching yours.
- Non-profit vs. for-profit status:
Determine what type of facility you will run. Since non-profits have funding options for capital expenses, they are often able to keep their pricing structure lower, and therefore more competitive. But it may also affect the type of funding you can receive.
- Licensing and compliance:
Know the assisted living facility requirements of your state. Not all states allow facilities to provide all services, so know your options before you start. Get licensed and meet the basic compliance needs, such as American’s with Disabilities Act, Fair Housing Act and any safety regulations.
- Funding availability:
Diving in to the entrepreneurial world can be exciting. But if there’s one thing businessmen know, it’s that securing funding is vital to moving forward. No matter how profitable an industry is, or how much growth potential it has, it will be a challenge to get a business off the ground without adequate funds. Here are some accessible funding options that should be on your radar.
- SBA 7(a) loans are administered by the Small Business Association (SBA) to simplify and increase funding for small business owners. They can provide funding for working capital, purchasing equipment, refinancing debts, as well as revolving funds.
- SBA 504 loans
These loans, also administered by the SBA, cannot be used for working capital. Rather, the loan is aimed at major fixed-assets, like equipment, property and buildings, to name a few.
Having a partner on board to navigate the new business and loan process and ensure that you’re getting the most bang for your entrepreneurial buck is vital.
If you’ve ever thought about starting a business, or entering the elder care profession, there’s no time like the present. Connect with our team of certified SBA lenders today to get the facts you need for securing a loan to solidify your goal and kick-start your dream. Get a free quote now.