{"ok":true,"canonical_url":"https://dealroom.so/glossary/robs-plan","api_url":"https://dealroom.so/api/public/glossary/robs-plan","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-plan","term":"ROBS Plan","aka":"Rollover for Business Start-ups Plan","group":"Your money in the deal","definition":"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":"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.","url":"https://dealroom.so/glossary/robs-plan","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"rollover-for-business-start-up","term":"Rollover for Business Start-up","url":"https://dealroom.so/glossary/rollover-for-business-start-up"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"},{"slug":"undisclosed-borrowed-equity","term":"Undisclosed Borrowed Equity","url":"https://dealroom.so/glossary/undisclosed-borrowed-equity"}],"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"},{"question":"Is a comprehensive business plan mandatory for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/is-a-comprehensive-business-plan-mandatory-for-an-sba-7-a-loan"},{"question":"Is a detailed business plan necessary for an SBA 7(a) loan application?","url":"https://dealroom.so/sba-loans/basics/is-a-detailed-business-plan-necessary-for-an-sba-7-a-loan-application"},{"question":"How important is a business plan for an SBA 7(a) loan application?","url":"https://dealroom.so/sba-loans/basics/how-important-is-a-business-plan-for-an-sba-7-a-loan-application"}]},"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 Plan","url":"https://dealroom.so/glossary/robs-plan","source_type":"DealRoom Data"}}