The one industry that a for-profit business could find grants is the childcare industry. Start by asking your chamber of commerce about grants for your industry. What you are more likely to find are low cost (discounted) loans for your needs. There are aslo SBA guanateed loans that might be able to help you. Have you though about asking the current owner to carry the note. If you can come up with say 10% down, have the current owner financne the rest.

Thanks BizResearcher for the tip! cthavorn - Some states do provide grants for expanding child care centers. However, it is more likely that you will find a suitable loan. Try using the Loans and Grants tool to see what financing options are available for your business.

Grants are rarely available to for-profit businesses unless they have invented new technology in the national interest. Your best bet is to apply for a loan. You might talk with your banker about an SBA-guaranteed loan. If your day care will primarily serve children whose mothers are receiving state aid, and the state will pay you to care for the children, then you might be able to secure some funding help through your department of health and human services, but it wouldn't be for the full cost of the day care.