Glossary · People and paperwork
ERISA Rules(Employee Retirement Income Security Act)
In short
These are federal laws setting minimum standards for most private industry retirement and health plans. If you use a ROBS structure, you must comply with ERISA rules to avoid severe penalties.
What it means in a deal
ERISA governs the structure and operation of qualified retirement plans, including the 401(k) plans used in ROBS transactions. It dictates fiduciary duties and prohibits self-dealing. Failure to adhere to ERISA can lead to disqualification of your 401(k) plan and significant tax penalties.
Related terms
Common questions about ERISA Rules
- What are the rules for using gifted family funds as equity?
- If I use retirement account funds for equity, what are the rules?
- What are the citizenship or residency rules for SBA 7(a) loan applicants?
- When does identity of interest trigger affiliation for size determination under SBA rules?
- What are the rules if a seller note is not on full standby status?
- Is there an income limit for my business to be "small" by SBA rules?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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