{"ok":true,"canonical_url":"https://dealroom.so/glossary/rollover-for-business-start-up","api_url":"https://dealroom.so/api/public/glossary/rollover-for-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-for-business-start-up","term":"Rollover for Business Start-up","aka":"ROBS","group":"Your money in the deal","definition":"A Rollover for Business Start-up (ROBS) is a strategy allowing you to use your 401(k) or IRA funds to invest in a business without incurring taxes or early withdrawal penalties.","what_it_means":"Using a ROBS plan for your equity injection in an SBA 7(a) loan is permitted, but requires strict adherence to IRS and Department of Labor rules. Lenders will verify that the ROBS funds are truly unencumbered and treated as equity, not debt. Work with experienced professionals to set this up correctly.","url":"https://dealroom.so/glossary/rollover-for-business-start-up","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":"robs-plan","term":"ROBS Plan","url":"https://dealroom.so/glossary/robs-plan"},{"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":"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 documentation is required for equity injection funds originating from a retirement account rollover?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-for-equity-injection-funds-originating-from-a-retirement-ac"},{"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 an SBA 7(a) loan help me start a brand new business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-help-me-start-a-brand-new-business"},{"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"}]},"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 for Business Start-up","url":"https://dealroom.so/glossary/rollover-for-business-start-up","source_type":"DealRoom Data"}}