{"ok":true,"canonical_url":"https://dealroom.so/glossary/federal-grant","api_url":"https://dealroom.so/api/public/glossary/federal-grant","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"federal-grant","term":"Federal grant","group":"The loan itself","definition":"A federal grant is money given by the government that does not need to be repaid, typically for specific projects or purposes. It is distinct from an SBA loan, which is debt.","what_it_means":"Federal grants are generally not available for purchasing an existing for-profit small business. SBA 7(a) loans are debt instruments designed for business acquisition, not grants. Do not confuse the two; focus on structuring a viable loan and equity injection for your deal.","url":"https://dealroom.so/glossary/federal-grant","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"business-acquisition-loan","term":"Business acquisition loan","url":"https://dealroom.so/glossary/business-acquisition-loan"}],"related_questions":[{"question":"Can a non-profit organization provide a grant that counts towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-non-profit-organization-provide-a-grant-that-counts-towards-my-equity-injection"},{"question":"Can I use a conditional grant from a local economic development agency as equity?","url":"https://dealroom.so/sba-7a/questions/can-i-use-a-conditional-grant-from-a-local-economic-development-agency-as-equity"},{"question":"Is an SBA 7(a) loan a grant that I do not have to repay?","url":"https://dealroom.so/sba-loans/basics/is-an-sba-7-a-loan-a-grant-that-i-do-not-have-to-repay"},{"question":"Is an SBA 7(a) loan a type of government grant that I don't have to repay?","url":"https://dealroom.so/sba-loans/basics/is-an-sba-7-a-loan-a-type-of-government-grant-that-i-don-t-have-to-repay"},{"question":"Can a non-profit organization provide a grant that counts towards my equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-non-profit-organization-provide-a-grant-that-counts-towards-my-equity-injection-for-"},{"question":"What if a business applicant has outstanding federal tax liens or delinquencies?","url":"https://dealroom.so/for-lenders/questions/what-if-a-business-applicant-has-outstanding-federal-tax-liens-or-delinquencies"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Federal grant","url":"https://dealroom.so/glossary/federal-grant","source_type":"DealRoom Data"}}