Glossary · Your money in the deal
Qualified ROBS provider
In short
A Qualified ROBS provider is a third-party administrator that helps you use your retirement funds (401k or IRA) to buy a business without incurring early withdrawal penalties or taxes. This lets you use pre-tax dollars for your equity injection.
What it means in a deal
If you're using a ROBS (Rollover for Business Startups) structure for your equity injection, you must work with a qualified provider. They ensure your transaction complies with IRS and ERISA rules, which is critical since non-compliance can lead to severe penalties and jeopardize your SBA loan. Choose a reputable provider with a track record.
Related terms
Common questions about Qualified ROBS provider
- What documentation proves U.S. citizenship or Qualified Alien status for owners?
- Can a Qualified Alien without permanent residency obtain an SBA 7(a) loan?
- Can I get pre-qualified for an SBA 7(a) loan before identifying a specific business to acquire?
- What specific documentation is required to verify citizenship or qualified non-citizen status for 7(a) loan applicants?
- Are funds from a Roth IRA eligible for my equity injection if rolled over via a "rollover as business startup" (ROBS) plan?
- Can funds from a retirement account, like a 401(k), be used for my equity injection if rolled into a new C-corp via a ROBS plan?
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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