Glossary · Your money in the deal
Rollover for Business Startups
In short
A strategy that allows you to use funds from your retirement accounts (like a 401k or IRA) to fund your business without incurring taxes or early withdrawal penalties.
What it means in a deal
ROBS involves setting up a new C corporation and a 401(k) plan within it, then rolling over your existing retirement funds into that new 401(k). The new 401(k) then invests in your C corporation, providing equity for your acquisition. This is a complex strategy requiring specialized advisors, but can be a powerful equity injection source.
Related terms
Common questions about Rollover for Business Startups
- 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?
- Are SBA 7(a) loans only for brand new businesses (startups)?
- Are SBA 7(a) loans only for existing businesses, or can startups also apply?
- Is an SBA 7(a) loan only for brand-new startups or very small businesses?
- What documentation is required for equity injection funds originating from a retirement account rollover?
- Are funds from a Roth IRA eligible for my equity injection if rolled over via a "rollover as business startup" (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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