is there a 'terminal velocity' for the small body due to the increasing energy required to accelerate the body as its velocity increases?
No there is not.
Under the conditions you specify, the only limiting force is the one when they literally collide. There is a maximum speed that will be reached, of course, right before they hit. In the absence of any other retarding force, however, the gravitational potential energy will be converted to kinetic energy with 100% efficiency. If it misses, for instance, then you enter the realm of orbital motion where the energy is constantly swapping back and forth between kinetic and gravitational potential energy.
Hope this helps. I think you have a solid intuition about the situation.
Limitations
The question can be formalized in the following way, there is a small mass $m$ and a large mass $M$ for which $m\ll M$. Say $M$ is at the origin and $m$ starts on the positive x-axis at a distance sufficiently large such that we can say the gravitational potential is zero. The acceleration of $m$ is written for the non-relativistic case as follows.
$$ a = - \frac{G M}{x^2}$$
It will follow that the kinetic energy as $m$ reaches any given point will be the following, then we can write the velocity. The conceptual question that follows is whether it can exceed the speed of light.
$$ KE = m \frac{G M}{x} = \frac{1}{2} m v^2$$
$$ v = \sqrt{ \frac{ 2 G M }{ x} }$$
$$ v \stackrel{?}{>} c$$
An obvious limitation is the case where $x$ reaches the value such that we are on the surface of $M$ if we take it to be a planet for instance. We can wave away this limitation by saying that M is a point. However, the formula for kinetic energy is invalid for when $v$ approaches $c$ (as well as the formula for potential energy!) so that's not very helpful.
In terms of common knowledge about general relativity, yes, it actually is the case that the speed exceeds the speed of light going inward by some formalizations in some reference frames. The equations above, however, do nothing more than give you and idea when when such concepts are going to become important. Any mass, no matter how small, can form the conditions of a black hole provided that the density is high enough (just decrease $x$ in that equation).