grants are pretty much a no-no, and for loans a lender will need to be satisfied that there is suffiecient equity etc. to give a loan. You're unlikely to get govt support for business purchasing as this is really more of a venture capital situation.

Grants will probably be out the question for you - just not how grants work. Most loans depend on the business (some lenders will not fund certain businesses) but for the most part depend on the cash flow of the business and the credit of the borrower and they always require the borrower to put up some equity themselves. You might call around to local banks and inquire about their SBA programs (some banks don't offer them). Then go in and talk to the loan officers. If you need help filling out the package or in better understand the requirements, find a local SCORE or SBDC in your area - both are free to use. Or, if you can put some down, why not ask the current owner to carry the rest of the note - with a 5 year balloon. This way, you can be assured that the busienss owner beleives in the long-term viability of the business and in five years, with experience under your belt, more banks and other lenders will be more willing to talk with you.

Grants are rarely available to for-profit businesses unless they are engaged in cutting-edge research or new technology, so your best bet would be to apply for a loan. You may want to contact a business attorney and a CPA for assistance. Before you make an offer on a business you should obtain at least three years of financials and have your accountant look at them to determine the real value of the business and any potential issues that the financials might reveal. An attorney can help you create a legally binding offer agreement.