Grants to Buy an Existing Business
Buying an existing business is a proven path to entrepreneurship, offering established customer bases, operating systems, and revenue streams. Federal SBA loans, down payment assistance programs, and business acquisition grants make it possible for qualified entrepreneurs to purchase established businesses. Below are 70 verified funding opportunities supporting business acquisition and expansion.
Types of Business Acquisition Funding
SBA 7(a) Acquisition Loans
Federal-guaranteed loans up to $5M supporting the purchase of established businesses, equipment, real estate, and working capital for new ownership.
Down Payment Assistance Programs
Grants and programs helping buyers cover down payment portions of business acquisitions, reducing upfront capital requirements and loan amounts.
SBA 504 Certified Development Loans
Specialized loans for acquiring real estate and equipment, combining SBA financing with conventional lender credit to achieve favorable terms on larger purchases.
Minority & Women Business Acquisition Programs
Targeted acquisition assistance for underrepresented entrepreneurs, including specialized loan programs, mentoring, and down payment support.
Major Federal Business Acquisition Programs
SBA 7(a) Guaranteed Loan Program
Purpose: Federal guarantee enables banks to finance business acquisitions with reduced risk
Loan Amounts: Up to $5M ($3.75M typical for acquisition)
Use of Funds: Purchase price of business, equipment, real estate, inventory, working capital, refinance existing debt
Interest Rates: Prime + 2.25-2.75% (competitive market rates)
Terms: 5-10 years for equipment/acquisition, up to 25 years for real estate
Credit Requirements: 620+ credit score typical (SBA guarantee helps with lower scores)
Website: SBA 7(a) Loans
SBA 504 Certified Development Company Loans
Purpose: Finance real estate and equipment purchases for business acquisition/expansion
Loan Structure: 50% conventional bank + 40% SBA CDC + 10% owner equity (typical split)
Loan Amounts: Up to $7.5M for real estate, $5M for equipment
Interest Rates: Bank rate + SBA rate (fixed, often below market)
Eligibility: Owner-operated small business, business must create jobs or provide public benefit
Advantages: Lower down payment requirement (10%), fixed rates, longer terms
Website: SBA 504 Loans
SBA Down Payment Assistance Initiatives
Purpose: Help entrepreneurs with limited capital access down payment funds
Programs: Various state and local programs offering 5-20% down payment assistance
Funding: Grants or low-interest loans covering 15-50% of required down payment
Eligibility: Underrepresented entrepreneurs, low-income individuals, first-time business buyers
Strategy: Combine down payment assistance with SBA 7(a) or 504 for full acquisition funding
Website: Check SBA State Programs
CDFI Business Acquisition Loans
Purpose: Community development lenders financing acquisitions in underserved areas
Loan Amounts: $25K-$2M depending on CDFI and deal size
Terms: Flexible, typically 3-7 years
Credit Flexibility: Mission-focused lenders work with lower credit scores and limited history
Support: Often includes mentoring, business planning, technical assistance
Website: Find CDFIs
Who Can Apply for Business Acquisition Funding?
Business acquisition loans and grants serve entrepreneurs and business owners meeting SBA small business size standards and other program criteria:
- Experienced Business Operators: Owners with proven business management experience and understanding of target business industry
- First-Time Business Buyers: Individuals with professional background or industry expertise but no business ownership experience
- Franchise Operators: Entrepreneurs purchasing established franchise operations
- Minority & Women Entrepreneurs: Special SBA programs and down payment assistance for underrepresented groups
- Underserved Borrowers: Low-income individuals, previously denied by conventional lenders eligible for CDFI financing
- Owner-Operators: Must actively manage/operate acquired business (not passive investors)
- Size Requirements: Business must qualify as "small" per SBA standards (typically under 500 employees or $7.5M-$35M revenue)
Key Requirement: Demonstrate adequate equity investment (10-20% of acquisition cost) and show repayment capacity through business analysis.
Frequently Asked Questions
How much money do I need to buy a business with SBA financing?
SBA loans require: 10-20% equity investment from owner (down payment). Example: $500K business = $50-100K owner equity + $400-450K SBA loan. Equity sources: personal savings, personal assets (home equity), family/partner investment, investors (venture capital, angel investors), other business sale proceeds. SBA typically finances up to 80-90% of acquisition cost. Some programs: down payment assistance grants reduce required owner equity to 5-10%. Strategy: Combine SBA 7(a) loan (acquisition) + SBA down payment assistance program + personal equity to minimize upfront requirements.
What's the difference between SBA 7(a) and 504 loans for business acquisition?
SBA 7(a): Faster process (2-6 weeks), more flexible use of funds, up to $5M, works for most acquisitions. Better if: you need quick funding, assets are diverse, or down payment assistance available. SBA 504: Longer approval (6-8 weeks), specialized for real estate/equipment, up to $7.5M, lower down payment requirement (10%), fixed rates. Better if: property/equipment are 50%+ of acquisition, you want locked-in rates, real estate involved. 504 loans: 40% SBA funding + 50% conventional bank + 10% owner equity (more favorable equity ratio). Choose 7(a) for speed/flexibility, 504 for real estate-focused deals with fixed-rate advantage.
What business types are eligible for acquisition loans?
Most business types eligible: retail, wholesale, manufacturing, services (accounting, consulting, IT), restaurants, professional practices (law, medical, dental), construction, transportation, real estate services, nonprofits (if purchasing business assets). NOT eligible: lending/investment businesses, passive income businesses, speculative businesses. Business must: operate legally, have legitimate operating history, be profitable or have path to profitability, serve identifiable customer base. Franchises: Can be acquired with SBA financing if franchise franchisor approved. Home-based businesses: Generally acceptable if legitimate. Existing seller financing allowed but may complicate SBA financing.
How long does SBA business acquisition approval take?
Timeline: (1) Pre-approval/application: 1-2 weeks (SBA prequalification loan program, if used). (2) SBA 7(a) approval: 2-4 weeks from bank. (3) SBA 504 approval: 4-8 weeks (requires CDC evaluation). (4) Escrow/closing: 2-4 weeks. Total: 6-16 weeks from application to funding. Speed factors: (1) Business valuation clarity (complex businesses take longer), (2) Seller willingness (some sellers impatient), (3) Buyer credit/experience (strong candidates faster), (4) Documentation completeness (missing docs delay). Accelerate by: (1) Using SBA prequalification, (2) Preparing business valuation upfront, (3) Having complete financial documentation, (4) Working with experienced SBA lender.
What fees and interest rates apply to SBA acquisition loans?
SBA 7(a) rates: Prime rate + 2.25-2.75% (currently 8-10% total typical). SBA 504 rates: Bank rate (prime + 1.5-2%) + CDC rate (typically fixed 2.5-3%). Fees SBA 7(a): (1) SBA guarantee fee (1-3.75% depending on loan amount, typically 1.5%), (2) Bank origination fee (0-1%), (3) Appraisal/title fees ($500-2K). Fees SBA 504: (1) CDC annual servicing fee (0.4%), (2) SBA guarantee fee (0.5-1.5%), (3) Professional fees (appraisal, legal). Total startup costs: 2-5% of loan amount. Example: $400K SBA 7(a) = $6K-20K in fees. These costs can be rolled into loan amount. Compare to conventional loans (8-12% rates, no SBA benefits).
Do I need experience in the business I'm buying?
No. Many successful business buyers are new to the industry. However: (1) Lenders prefer some management experience (business operation, finance, team management), (2) Personal business experience in another industry acceptable, (3) Franchises provide training systems (less industry experience needed), (4) Consulting/mentoring available through SBA (SBDC, SCORE). Strategies if new to industry: (1) Hire experienced general manager for first 2-3 years, (2) Keep existing management if possible, (3) Get business mentor through SBA, (4) Document learning plan in business proposal. Strong business management skills more important than industry-specific knowledge for acquisition success.
How to Apply for Business Acquisition Loans
- Identify Target Business: Find business for sale matching your interests, experience, and financial capacity. Evaluate: business profitability, customer base, market position, growth potential, purchase price reasonableness. Have preliminary deal in mind (letter of intent or price discussion with seller).
- Get Pre-Approval/Prequalification: Meet with SBA lender or use SBA Prequalification Loan Program to assess your borrowing capacity and get pre-approval letter. Pre-approval strengthens negotiating position with seller and accelerates approval process. Shows lender you're serious buyer.
- Prepare Business Analysis: Complete detailed business analysis of target: 3-year historical financials (review with accountant), detailed business plan for next 3-5 years, valuation (use industry multiples or business valuator), management plan, personal financial statement. Lenders scrutinize acquisition economics carefully—solid analysis critical.
- Gather Documentation: Collect: personal credit report (check for errors), personal financial statement, tax returns (3-5 years personal + 3 years business if self-employed), business license, industry experience documentation, target business documents (financials, lease, customer list summary if available).
- Finalize Business Deal: Negotiate purchase agreement with seller covering: purchase price, assets included, liabilities assumed, working capital adjustments, transition support. Legal review recommended. Earnest money deposit (1-2% of price) typically required to show serious intent.
- Submit Loan Application: Complete SBA lender application with all documentation. Apply to SBA-preferred lender or bank familiar with SBA financing. Application includes: business plan, financial analysis, personal information, loan request amount/terms. Submit early—closing must occur within agreed timeframe with seller.
- Lender Review & Appraisal: Lender orders business valuation appraisal (typically $1,000-3,000). May request additional financial details, clarifications, or updated documents. Underwriting typically 2-4 weeks. Be responsive to information requests.
- Approval & Closing: Receive SBA commitment letter or approval. Arrange title work, business transfer documents, employment agreements. Closing takes 1-2 weeks. Funds disburse to seller, business transfers to new owner, you take control.
Business Acquisition Resources
SBA 7(a) Loans
Explore SBA 7(a) guaranteed loans up to $5M for business acquisition and expansion.
SBA 504 Loans
SBA 504 loans for real estate and equipment acquisition with favorable terms.
Find SBA Lenders
Search for SBA-approved lenders in your area to start the application process.
SBDC Business Consulting
Free business advice and acquisition planning support from Small Business Development Centers.
Business.gov Resources
Government resources for business acquisition, planning, and entrepreneurship.
BizBuySell Marketplace
Search for businesses for sale and connect with brokers for acquisition opportunities.
Available Business Acquisition Grants & Loans (70)
Showing 1-20 of 70 grants
FY2026 ABPP - Battlefield Land Acquisition Grant
National Park Service
RESTORE Act Direct Component – Construction and Real Property Acquisition Activities
U.S. Dept. of Treasury RESTORE Act Program
Made in California Program
Governor's Office of Business and Economic Development
The purpose of this announcement is to solicit applications from eligible organizations to apply to provide marketing and engagement services to support the awareness and use of the Made in California label and promotional services by California’s manufacturing businesses. “Made in California” is California’s manufacturing promotion and product labeling program (herein defined as “Program”). The Program is designed to develop and promote the Made in California label, to encourage consumer product awareness, and to foster purchases of high-quality products in this state. The Program is administered by the California Office of the Small Business Advocate (herein referred to as “CalOSBA”) within the Governor's Office of Business & Economic Development (herein referred to as GO-Biz). The...
Tribal Nature-Based Solutions Climate Bond 2026 Solicitation
CA Natural Resources Agency
This funding will continue to support the return of ancestral lands to California Native American tribes, planning and implementation of habitat restoration projects, protecting the California coast and oceans, advancing wildfire resiliency and cultural fire, and many other multi-benefit nature-based solutions projects across California. Please refer to the TNBS Climate Bond Final 2026 Guidelines for detailed information. Approximately $9.2 million is available for tribal multi-benefit nature-based solutions projects that will fund land acquisition or other fee title acquisitions benefiting California Native American Tribes. Eligible expenses include costs associated with the purchase of property rights, conservation easements, and water rights/instream flows consistent with requirements...
Paid Family Leave Small Business Grant 4 (PFL SB 4 Grant)
Employment Training Panel
The PFL SB Grant will provide to California small businesses (within the grant) equal to or between 100–51 employees a payment of $1,000 and a payment of $2,000 to small businesses less than or equal to 50 for each employee who is utilizing the PFL program, to help offset the costs involved with training other employees to cover the duties of this individual on PFL leave. The Employment Training Panel (ETP) and Labor and Workforce Development Agency (LWDA),announce the availability of up to $920,000 in California State General Fund dollars, for Multiple Employer organizations to outreach to California’s small businesses impacted by the Paid Family Leave (PFL) program, to help offset the costs incurred when training employees to cover the duties of the individual utilizing PFL. PFL is part...
Social Entrepreneurs for Economic Development 3 (SEED 3)
Employment Training Panel
SEED supports the entrepreneurship of immigrants and limited English proficient (LEP) individuals who face significant employment barriers. The SEED Initiative will provide micro-grants, entrepreneurial training, and technical assistance to support them in starting or maintaining a small business in California aimed at addressing a social problem or meeting a community need. In June 2020, the California Legislature approved Assembly Bill 82 (Chapter 14, Stats. 2020), which established the Social Entrepreneurs for Economic Development (SEED) Initiative (See California Unemployment Insurance Code, sections 14106 to 14110). The Employment Training Panel (ETP), within the Labor and Workforce Development Agency (Agency), is administering this round of SEED funding on behalf of the California...
Grants and Cooperative Agreements Program (GCA) – G26
Department of Parks and Recreation
The Grants and Cooperative Agreements (GCA) Program provides for well managed Off-Highway Vehicle (OHV) Recreation by providing financial assistance to eligible agencies and organizations that develop, maintain, operate, expand, support, or contribute to well managed, high-quality, OHV Recreation areas, roads, and trails, and to responsibly maintain the wildlife, soils, and habitat in a manner that will sustain long-term OHV Recreation. The GCA Program supports the planning, acquisition, development, maintenance, administration, operation, enforcement, restoration, and conservation of trails, trailheads, areas, and other facilities associated with the use of Off-Highway Motor Vehicles, and programs involving Off-Highway Motor Vehicle safety and/or education.
FY 2025-26 Listos California Statewide Grant (LS) Program
Governor's Office of Emergency Services
Support organizations throughout California that serve multiple counties and/or larger populations with key social vulnerability factors located in areas at moderate to high risk from natural hazard. Community-based organizations throughout the state, referred to as CBOs, can work independently or subgrant with local CBOs to provide disaster training and resources to vulnerable and diverse populations. The purpose of the LS Program is to support organizations throughout California that serve multiple counties with equity priority factors located in areas at moderate to high risk of disaster. Nonprofits throughout the State work independently through their local chapters and/or affiliates to provide disaster training and resources to diverse populations disproportionately impacted by...
FY 2025-26 Listos California Regional Grant (LL) – Southern
Governor's Office of Emergency Services
The purpose of the LL Program is to support organizations within California’s Southern Region that serve multiple counties with equity priority factors located in areas at moderate to high risk of disaster. Nonprofits throughout the Southern Region can work independently or subgrant with local nonprofits to provide disaster training and resources to diverse populations disproportionately impacted by emergencies. The purpose of the LL Program is to support organizations within California’s Southern Region as defined in Section E. 1. above, that serve multiple counties with equity priority factors located in areas at moderate to high risk of disaster. Nonprofits throughout the Southern Region can work independently or subgrant with local nonprofits to provide disaster training and resources...
FY 2025-26 Listos California Regional Grant (LN) – Inland
Governor's Office of Emergency Services
To support organizations located in areas at moderate to high risk of disaster. Nonprofits throughout the Inland Region can work independently or subgrant with local nonprofits to provide disaster training and resources to diverse populations disproportionately impacted by emergencies. This work is intended to increase their communities’ disaster preparedness, response, recovery, and mitigation capabilities. The purpose of the LN Program is to support organizations within California’s Inland Region as defined in Section E.1. above, that serve multiple counties with equity priority factors located in areas at moderate to high risk of disaster. Nonprofits throughout the Inland Region can work independently or subgrant with local nonprofits to provide disaster training and resources to...
FY 2025-26 Listos California Regional Grant (LM) – Coastal
Governor's Office of Emergency Services
Nonprofits throughout the Coastal Region can work independently or subgrant with local nonprofits to provide disaster training and resources to diverse populations disproportionately impacted by emergencies. This work is intended to increase their communities’ disaster preparedness, response, recovery, and mitigation capabilities. The purpose of the LM Program is to support organizations within California’s Coastal Region as defined in Section E.1. above, that serve multiple counties with equity priority factors located in areas at moderate to high risk of disaster. Nonprofits throughout the Coastal Region can work independently or subgrant with local nonprofits to provide disaster training and resources to diverse populations disproportionately impacted by emergencies. This work is...
BH UWC Consolidated Grant Program
Baldwin Hills Conservancy
The BH UWC Consolidated Grant Program streamlines administration of State funds, aligning with the Cutting Green Tape initiative. Centered on Embedding Equity, it funds high-impact projects that advance conservation, climate resilience, and Access for All through Planning, Implementation, Acquisition, and Stewardship & Community Access Grants that deliver equitable, measurable benefits statewide. The Consolidated Grant Program guidelines prioritizes project which directly and meaningfully benefit Disadvantaged Communities and Vulnerable Populations. BH UWC Community and Climate Resilience Framework is integral to effective and equitable grant making is the strategic funding of projects & programs that deliver tangible and/or measurable benefits to a population, in direct response to a...
Proposition 4 Grant Program
Tahoe Conservancy
The Conservancy's Proposition 4 program aims to support watershed improvement, forest health biomass utilization, chaparral and forest restoration, and workforce development, and to reduce the risks of climate change impacts upon communities, fish and wildlife, and natural resources, and to increase public access. The California Tahoe Conservancy (Conservancy) leads California's efforts to restore and enhance the extraordinary natural and recreational resources of the Lake Tahoe Basin (Basin). The Conservancy uses available funding to accomplish its mission and Strategic Plan through grants for land acquisition, planning, implementation, and monitoring on the California side of the Basin. California voters approved Proposition 4 (the Climate Bond), the Safe Drinking Water, Wildfire...
PON-24-002 – K–12 Energy Efficiency Program (KTEP)
CA Energy Commission
The Kindergarten through Twelfth Grade Energy Efficiency Program’s (KTEP) goal is to provide zero-interest loans to Kindergarten through Twelfth Grade (K-12) schools in California for energy efficiency retrofits and renewable energy projects. Funds in this Program Opportunity Notice (PON) are made available by the Infrastructure Investment and Jobs Act (IIJA), also referred to as the Bipartisan Infrastructure Law (BIL), Pub. L. No. 117-58, enacted on November 15, 2021[1]. Section 40502 of BIL states the purpose of this provision is to establish revolving loan funds (RLF) under which states can provide loans and grants for energy upgrades and retrofits to increase the energy efficiency, physical comfort, and air quality of existing building infrastructure. Loan funds for this program are...
Permanent Local Housing Allocation/ 2022 PLHA NOFA
Department of Housing and Community Development
The principal goal of this program is to make funding available to eligible Local Governments in California for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities. B. Eligible Activities 1. The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-, very low-, low-, or moderate-income households, including necessary Operating subsidies.2. The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of Area Median Income (AMI), or 150 percent of...
Land Acquisition 2025
Wildlife Conservation Board
The WCB acquires real property or rights in real property on behalf of the California Department of Fish and Wildlife (CDFW) and can also grant funds to other governmental entities or nonprofit organizations to acquire real property or rights in real property. All acquisitions are made on a "willing seller" basis pursuant to a fair market value appraisal as approved by the Department of General Services (DGS). The acquisition activities are carried out in conjunction with the CDFW, which generally entails CDFW evaluating the biological values of property through development of a Full WCB Real Property Acquisition Application. Once these evaluations are completed, they are submitted to CDFW’s Director for review and approval and then sent to the WCB with a recommendation to fund. Typically...
2025 Tribal Multifamily Finance Super Notice of Funding Availability
Department of Housing and Community Development
The Department announces the availability of approximately $50 million in funds available through this first round of the Tribal Multifamily Finance Super Notice of Funding Availability (Tribal MFSN). This NOFA makes funds more easily accessible to Tribes and Tribal Entities and provides flexible options to address the unique needs of Indian communities to achieve better outcomes in health, climate, and household stability. Rather than utilizing a set-aside within the standard MFSN Program, this NOFA operates independently and is tailored to meet the specific affordable housing needs of California Tribes. Funds offered under this NOFA and the criteria specified herein are available solely and exclusively to eligible Tribal Entities. This NOFA provides forgivable loans to assist with the...
Grants and Cooperative Agreements Program (GCA)- G25
Department of Parks and Recreation
The Grants and Cooperative Agreements (GCA) Program provides for well managed Off-Highway Vehicle (OHV) Recreation by providing financial assistance to eligible agencies and organizations that develop, maintain, operate, expand, support, or contribute to well managed, high-quality, OHV Recreation areas, roads, and trails, and to responsibly maintain the wildlife, soils, and habitat in a manner that will sustain long-term OHV Recreation. The GCA Program supports the planning, acquisition, development, maintenance, administration, operation, enforcement, restoration, and conservation of trails, trailheads, areas, and other facilities associated with the use of Off-Highway Motor Vehicles, and programs involving Off-Highway Motor Vehicle safety and/or education.
2025 – 2026 LSTA Community Impact Grants
CA State Library
The California State Library’s LSTA Community Impact grants opportunity helps California’s libraries respond effectively to local needs and align services with local community aspirations; support experimentation and research and development in California’s libraries; and provide training and support in grant writing and grant management for the California library community. We invite libraries and other eligible organizations to apply for funding to support local and collaborative projects that address community needs and align with community aspirations. Projects should be guided by the principles of equity, diversity, inclusion, and belonging. Projects should align with goal one of the State Library’s current LSTA Five Year Plan. We are especially interested in projects from library...
Stream Flow Enhancement
Wildlife Conservation Board
The Stream Flow Enhancement Program (SFEP) funds projects that enhance stream flows across the state of California. The SFEP defines enhanced streamflow to mean: a change in the amount, timing, and/or quality of water flowing down a stream, or a portion of a stream, to benefit fish and wildlife. The following are funding priorities for the stream flow enhancement projects:• Implementation projects resulting in measurable increases in stream flow• Acquisition projects resulting in permanent or long-term in-stream flow dedications• Projects that are focused on a watershed or regional approach• Projects in critical watersheds for salmonids• Projects that help to complete previously funded projects• Projects that evaluate stream flow conditions and stream responses to other stream flow...