Glossary · The loan itself
Grant
In short
A grant is money you receive from a government or organization that doesn't need to be repaid. For a business acquisition, grants are rarely available and not a primary financing source.
What it means in a deal
While attractive, grants are generally not a viable funding option for buying an existing profitable small business, especially with an SBA 7(a) loan. Focus on traditional financing and your equity injection.
Related terms
Common questions about Grant
- Can a non-profit organization provide a grant that counts towards my equity injection?
- Can I use a conditional grant from a local economic development agency as equity?
- Is an SBA 7(a) loan a grant that I do not have to repay?
- Is an SBA 7(a) loan a type of government grant that I don't have to repay?
- Can a non-profit organization provide a grant that counts towards my equity injection for an SBA 7(a) loan?
- Are SBA 7(a) loans grants that I don't have to repay?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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