Glossary · Your money in the deal
ROBS Plan(Rollover for Business Start-ups Plan)
In short
A Rollover for Business Start-ups (ROBS) plan lets you use your retirement funds (401k/IRA) to invest in a business without immediate taxes or penalties. It's a way to fund your equity injection using pre-tax dollars.
What it means in a deal
ROBS plans are complex and require strict compliance with IRS and DOL rules. When using a ROBS plan for an SBA 7(a) acquisition, your lender and the SBA will scrutinize the setup to ensure the funds are genuinely unencumbered and meet equity injection requirements. Work with a qualified ROBS provider and ensure full transparency.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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 ROBS Plan
- 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?
- What are the specific requirements for a lender to document and verify an equity injection from a retirement account structured as a ROBS (Rollover for Business Startups) transaction?
- Is a comprehensive business plan mandatory for an SBA 7(a) loan?
- Is a detailed business plan necessary for an SBA 7(a) loan application?
- How important is a business plan for an SBA 7(a) loan application?
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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