{"ok":true,"canonical_url":"https://dealroom.so/glossary/robs-transaction","api_url":"https://dealroom.so/api/public/glossary/robs-transaction","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-transaction","term":"ROBS transaction","aka":"Rollover for Business Startups transaction","group":"Your money in the deal","definition":"A specific method allowing you to use your 401(k) or other retirement funds to finance a business purchase without incurring taxes or penalties. It's a complex but powerful equity injection strategy.","what_it_means":"This strategy involves setting up a new C-corporation and a 401(k) plan, then rolling over your existing retirement funds into the new plan. The new 401(k) then invests in your C-corp, providing the equity injection. Ensure strict IRS compliance and consult specialists for this approach.","url":"https://dealroom.so/glossary/robs-transaction","official_sources":[],"related":[{"slug":"401-k-plan","term":"401(k) plan","url":"https://dealroom.so/glossary/401-k-plan"},{"slug":"robs-facilitator","term":"ROBS facilitator","url":"https://dealroom.so/glossary/robs-facilitator"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"}],"related_questions":[{"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":"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":"Who actually lends the money in an SBA 7(a) loan transaction?","url":"https://dealroom.so/sba-loans/basics/who-actually-lends-the-money-in-an-sba-7-a-loan-transaction"},{"question":"When is a business valuation required for a change of ownership transaction exceeding $500,000?","url":"https://dealroom.so/for-lenders/questions/when-is-a-business-valuation-required-for-a-change-of-ownership-transaction-exceeding-500-"},{"question":"When is a business appraisal required for a change of ownership transaction exceeding $500,000?","url":"https://dealroom.so/for-lenders/questions/when-is-a-business-appraisal-required-for-a-change-of-ownership-transaction-exceeding-500-"},{"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"}]},"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 transaction","url":"https://dealroom.so/glossary/robs-transaction","source_type":"DealRoom Data"}}