{"ok":true,"canonical_url":"https://dealroom.so/glossary/robs","api_url":"https://dealroom.so/api/public/glossary/robs","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"robs","term":"ROBS","group":"Your money in the deal","definition":"Rollovers as Business Startups — a legal structure that lets you use 401(k) or IRA money for the down payment without early-withdrawal penalties.","what_it_means":"A ROBS structure involves forming a C-corp, having the corp sponsor a new 401(k), rolling your existing retirement funds into that plan, and having the plan buy stock in your new C-corp — which then has capital to acquire the business. It's legal but complex and requires a specialist administrator. Lenders treat ROBS funds as equity injection, but the structure adds annual compliance costs and scrutiny from the IRS. Use it only if you've exhausted other injection sources.","url":"https://dealroom.so/glossary/robs","official_sources":[],"related":[{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"out-of-pocket","term":"Out of pocket","url":"https://dealroom.so/glossary/out-of-pocket"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"}],"related_questions":[{"question":"Are funds from a Roth IRA eligible for my equity injection if rolled over via a \"rollover as business startup\" (ROBS) plan?","url":"https://dealroom.so/sba-7a/questions/are-funds-from-a-roth-ira-eligible-for-my-equity-injection-if-rolled-over-via-a-rollover-a"},{"question":"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?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-retirement-account-like-a-401-k-be-used-for-my-equity-injection-if-rolled"},{"question":"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?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-a-lender-to-document-and-verify-an-equity-injection"}],"related_tool":{"label":"SBA down payment guide","url":"https://dealroom.so/sba-7a/down-payment"}},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — ROBS","url":"https://dealroom.so/glossary/robs","source_type":"DealRoom Data"}}