Glossary · Your money in the deal
Qualified rollover(Retirement account rollover)
In short
This is a way to use funds from your retirement accounts (like 401(k) or IRA) without immediate tax penalties to fund your equity injection. It's a common strategy for buyers.
What it means in a deal
Through a specialized trust or plan (often called ROBS, Rollovers as Business Startups), you can invest your retirement funds into your new business's stock. This counts towards your equity injection and is a non-debt source of funds, but requires careful execution to avoid IRS penalties. Consult a specialist.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Qualified rollover
- 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?
- What documentation is required for equity injection funds originating from a retirement account rollover?
- 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?
- What if I want to use my 401k funds, structured as a rollover, for my equity injection?
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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