{"ok":true,"canonical_url":"https://dealroom.so/glossary/rollover-as-business-startup-plan","api_url":"https://dealroom.so/api/public/glossary/rollover-as-business-startup-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":"rollover-as-business-startup-plan","term":"Rollover as Business Startup Plan","aka":"ROBS plan","group":"Your money in the deal","definition":"A method to use funds from a Qualified Retirement Plan to finance a business acquisition without incurring early withdrawal penalties or taxes. It involves creating a new C-corporation and a new 401(k) plan.","what_it_means":"Many buyers use a ROBS plan to fund their equity injection for an SBA 7(a) loan. This allows you to leverage your retirement savings, but it's a complex process requiring careful compliance with IRS and DOL rules. Ensure you work with a specialist firm experienced in ROBS structures to avoid issues that could jeopardize your loan or retirement funds.","url":"https://dealroom.so/glossary/rollover-as-business-startup-plan","official_sources":[],"related":[{"slug":"qualified-retirement-plan","term":"Qualified Retirement Plan","url":"https://dealroom.so/glossary/qualified-retirement-plan"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"robs","term":"ROBS","url":"https://dealroom.so/glossary/robs"}],"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":"What specific elements of a borrower's business plan must a lender critically evaluate to meet prudent lending standards for a startup?","url":"https://dealroom.so/for-lenders/questions/what-specific-elements-of-a-borrower-s-business-plan-must-a-lender-critically-evaluate-to-"},{"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":"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"},{"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":"What if the business I'm acquiring is a startup with limited operating history?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-is-a-startup-with-limited-operating-history"}]},"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 Startup Plan","url":"https://dealroom.so/glossary/rollover-as-business-startup-plan","source_type":"DealRoom Data"}}