{"ok":true,"canonical_url":"https://dealroom.so/glossary/rollover-for-business-startups","api_url":"https://dealroom.so/api/public/glossary/rollover-for-business-startups","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-startups","term":"Rollover for Business Startups","group":"Your money in the deal","definition":"A strategy that allows you to use funds from your retirement accounts (like a 401k or IRA) to fund your business without incurring taxes or early withdrawal penalties.","what_it_means":"ROBS involves setting up a new C corporation and a 401(k) plan within it, then rolling over your existing retirement funds into that new 401(k). The new 401(k) then invests in your C corporation, providing equity for your acquisition. This is a complex strategy requiring specialized advisors, but can be a powerful equity injection source.","url":"https://dealroom.so/glossary/rollover-for-business-startups","official_sources":[],"related":[{"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":"capital-contribution","term":"Capital Contribution","url":"https://dealroom.so/glossary/capital-contribution"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"}],"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 SBA 7(a) loans only for brand new businesses (startups)?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-only-for-brand-new-businesses-startups"},{"question":"Are SBA 7(a) loans only for existing businesses, or can startups also apply?","url":"https://dealroom.so/sba-loans/basics/are-sba-7-a-loans-only-for-existing-businesses-or-can-startups-also-apply"},{"question":"Is an SBA 7(a) loan only for brand-new startups or very small businesses?","url":"https://dealroom.so/sba-loans/basics/is-an-sba-7-a-loan-only-for-brand-new-startups-or-very-small-businesses"},{"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"}]},"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 Startups","url":"https://dealroom.so/glossary/rollover-for-business-startups","source_type":"DealRoom Data"}}