{"ok":true,"canonical_url":"https://dealroom.so/glossary/rollovers-for-business-start-ups","api_url":"https://dealroom.so/api/public/glossary/rollovers-for-business-start-ups","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":"rollovers-for-business-start-ups","term":"Rollovers for Business Start-ups","aka":"ROBS","group":"Your money in the deal","definition":"A ROBS plan allows you to use your retirement funds (like a 401(k) or IRA) to fund your business acquisition without incurring early withdrawal penalties or taxes. It involves setting up a new C-corporation and a 401(k) plan within it.","what_it_means":"ROBS is a common but complex way to meet your equity injection requirement. You roll over your existing retirement funds into a new 401(k) plan established by your new C-corp, then the C-corp uses those funds to buy the business. While powerful, this structure requires careful setup and ongoing compliance; work with a specialized ROBS provider to avoid IRS penalties.","url":"https://dealroom.so/glossary/rollovers-for-business-start-ups","official_sources":[],"related":[{"slug":"qualified-plan","term":"Qualified plan","url":"https://dealroom.so/glossary/qualified-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":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"}],"related_questions":[{"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":"Can an SBA 7(a) loan be used to start a brand new business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-start-a-brand-new-business"},{"question":"Can I use an SBA 7(a) loan to start a brand-new business?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-start-a-brand-new-business"},{"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":"Can an SBA 7(a) loan help me start a brand new business from scratch?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-help-me-start-a-brand-new-business-from-scratch"},{"question":"Can an SBA 7(a) loan be used to start a brand new business from scratch?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-start-a-brand-new-business-from-scratch"}]},"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 — Rollovers for Business Start-ups","url":"https://dealroom.so/glossary/rollovers-for-business-start-ups","source_type":"DealRoom Data"}}