Starting a business after retirement can be a way to turn years of experience, skills, or a business idea into a new source of income. However, startup costs for equipment, supplies, marketing, licenses, technology, and other expenses can add up quickly.
While there are not generally federal grants specifically reserved for seniors who want to start a business, older entrepreneurs can explore grants and other funding opportunities based on factors such as business type, location, industry, income, veteran status, or other eligibility requirements.
The U.S. Small Business Administration (SBA) specifically notes that it does not provide grants for starting or expanding ordinary small businesses. However, SBA supports organizations that provide entrepreneurs with counseling, training, and access to business resources.
Who May Qualify
Being a senior does not automatically qualify someone for a business grant. Eligibility depends on the individual program. Older entrepreneurs may find opportunities based on:
- Business location
- Industry or type of business
- Household or personal income
- Business ownership structure
- Veteran status
- Disability status
- Rural location
- Business development goals
- Innovation or research activities
- Local economic-development programs
Some programs may be available to entrepreneurs of any age, while others target specific groups or industries.
Check What You May Qualify For
Finding startup funding can involve looking at more than one type of program. OpenGrants Network helps you discover legitimate opportunities that may fit your circumstances and business idea.
- ✓ Free eligibility check
- ✓ Free guidance if needed
Available programs vary by eligibility, location, business type, and available funding.
Types of Assistance Seniors Can Explore
Small Business Grants
Private organizations, nonprofits, corporations, and economic-development organizations may occasionally offer small business grants or competitions. These opportunities can have specific requirements based on industry, location, business ownership, or the purpose of the funding. Read the eligibility rules carefully because a program described online as a "senior business grant" may actually have additional requirements.
Local Business Assistance
State and local economic-development agencies may provide programs for entrepreneurs starting or expanding businesses. Depending on the area, assistance may include grants, business incentives, training, technical assistance, or referrals to financing programs.
Free Business Counseling
Seniors starting a business can also use free or low-cost business counseling. SBA Resource Partners include Small Business Development Centers (SBDCs), SCORE, and other organizations that provide business guidance and training. This can help with developing a business plan, estimating startup costs, researching customers, and preparing for financing.
SBA Microloans
A grant is not the only option for startup funding. The SBA Microloan program provides loans of up to $50,000 through approved nonprofit intermediary lenders. Funds can be used for purposes such as working capital, inventory, supplies, furniture, fixtures, and equipment. Unlike a grant, a microloan must be repaid.
Industry-Specific Grants
Some businesses may qualify for funding because of what they do rather than the owner's age. For example, SBA identifies federal grant opportunities involving areas such as scientific research and development, manufacturing, and exporting. If your business involves research, technology, manufacturing, agriculture, or another specialized field, look for programs designed specifically for that industry.
Veteran Entrepreneur Programs
Senior veterans may have additional business resources available to them. SBA's veteran entrepreneurship resources include training, counseling, access to capital, and federal contracting assistance. Veterans Business Outreach Centers also help veterans and military spouses who are interested in starting or growing a business.
Business Ideas Seniors May Consider
Older entrepreneurs start businesses in many different industries, including consulting, home-based services, bookkeeping, online businesses, tutoring, professional services, handcrafted products, food businesses, photography, real estate-related services, transportation services, senior-focused services, freelance services, and small retail businesses. The best funding opportunities depend on the actual business rather than simply being over a certain age.
How Startup Assistance Typically Works
- Develop your business idea. Clearly describe what you will sell or what service you will provide.
- Estimate startup costs. Include equipment, supplies, licenses, insurance, marketing, and working capital.
- Check eligibility. Look at programs based on your location, industry, ownership, and circumstances.
- Search for grants and other funding. Consider grants, loans, local programs, and nonprofit assistance.
- Get business counseling. SBA Resource Partners can provide guidance to prospective business owners.
- Prepare your application materials and compare funding carefully. Grants generally do not require repayment, while loans do.