{"ok":true,"canonical_url":"https://dealroom.so/glossary/rollover-as-business-start-up","api_url":"https://dealroom.so/api/public/glossary/rollover-as-business-start-up","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":"rollover-as-business-start-up","term":"Rollover as Business Start-Up","aka":"ROBS","group":"Your money in the deal","definition":"A financing strategy allowing you to use your retirement funds, such as a 401(k) or IRA, as an equity injection for a business acquisition without incurring taxes or penalties. It involves setting up a new C corporation and a qualified retirement plan.","what_it_means":"ROBS is a common but complex way to fund your down payment without personal income tax consequences. You must work with a specialist firm to establish a compliant structure, as errors can lead to severe penalties. Lenders are accustomed to seeing ROBS structures for equity.","url":"https://dealroom.so/glossary/rollover-as-business-start-up","official_sources":[],"related":[{"slug":"retirement-fund","term":"Retirement fund","url":"https://dealroom.so/glossary/retirement-fund"},{"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":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"}],"related_questions":[{"question":"What are the minimum cash equity requirements for acquiring a start-up business with an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-are-the-minimum-cash-equity-requirements-for-acquiring-a-start-up-business-with-an-sb"},{"question":"How should a lender document the 'prudent lending standards' applied when approving a 7(a) loan for a new business start-up?","url":"https://dealroom.so/for-lenders/questions/how-should-a-lender-document-the-prudent-lending-standards-applied-when-approving-a-7-a-lo"},{"question":"What if I want to use my 401k funds, structured as a rollover, for my equity injection?","url":"https://dealroom.so/sba-7a/questions/what-if-i-want-to-use-my-401k-funds-structured-as-a-rollover-for-my-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":"Does my business need to be set up as an LLC or Corporation for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/does-my-business-need-to-be-set-up-as-an-llc-or-corporation-for-an-sba-7-a-loan"},{"question":"What are the specific requirements for using retirement funds, structured as a rollover, for a 7(a) loan equity injection?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-using-retirement-funds-structured-as-a-rollover-for"}]},"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 — Rollover as Business Start-Up","url":"https://dealroom.so/glossary/rollover-as-business-start-up","source_type":"DealRoom Data"}}