My 12 year old terrier mix dog has been nipping and just bit a neighbor girl. What do I do?

Our dog is 12 years old and we can see that her anxiety around childern is increasing (Growling,hiding, pacing, panting). We have small children in our home and lots of neighbors that come and go. Last week an older child (10) ran past her in the house, startled my dog and got nipped (no mark), then tonight another little girl reached in the door when our dog was barking and got bit (small pen dot puncture). I have a call out to see if a family member can take our dog because she is very familiar with her and lives on a farm with no children, but I love my dog so much I feel conflicted. Is it really time to remove her from my home?