{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-from-a-self-directed-ira-sdira-structured-as-a-l","api_url":"https://dealroom.so/api/public/questions/how-does-a-lender-verify-equity-injection-from-a-self-directed-ira-sdira-structured-as-a-l","question":"How does a lender verify equity injection from a Self-Directed IRA (SDIRA) structured as a loan to the business?","topic":"Equity injection verification","audience":"lender","bot_mode":"lender","short_answer":"Lenders must verify the SDIRA structure complies with IRS rules (ROBS plan), that funds are not pledged as collateral for the 7(a) loan, and that specific documentation is provided.","rule":"Using retirement funds via a Rollover for Business Start-ups (ROBS) plan is a complex equity injection method. Lenders must confirm the ROBS plan is legally established and compliant with IRS and DOL regulations. The SDIRA funds, structured as a loan to the operating company (borrower), must not be secured by any collateral that also secures the SBA loan. Documentation includes the ROBS plan, loan agreement from SDIRA to C-corp, and proof of funds transfer.","example":"A borrower uses $100,000 from their SDIRA, structured through a ROBS plan, for equity injection. The lender requires the ROBS plan documents, the loan agreement between the C-corp and the SDIRA, and bank statements showing the transfer of funds. The lender also verifies that the C-corp's note to the SDIRA is not collateralized by assets pledged to the SBA loan.","what_lenders_check":"Lenders must exercise extreme caution with ROBS structures due to their complexity and potential for IRS/DOL violations. Non-compliance can lead to severe penalties for the borrower and jeopardize the SBA guaranty. Thorough legal review of the ROBS plan is essential.","required_facts":["SDIRA funds","ROBS plan compliance","IRS/DOL regulations","Unpledged collateral","Documentation requirements"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[{"question":"What documentation verifies funds for equity injection transferred from a personal investment account?","url":"https://dealroom.so/for-lenders/questions/what-documentation-verifies-funds-for-equity-injection-transferred-from-a-personal-investm"},{"question":"How does a lender verify equity injection funds that are a cash gift from a non-family third party?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-that-are-a-cash-gift-from-a-non-family-thi"},{"question":"Can a borrower's investment in a certificate of deposit (CD) count towards the required equity injection?","url":"https://dealroom.so/for-lenders/questions/can-a-borrower-s-investment-in-a-certificate-of-deposit-cd-count-towards-the-required-equi"},{"question":"What specific documentation is required to verify equity injection funds originating from a borrower's existing business assets, such as equipment or inventory?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-to-verify-equity-injection-funds-originating-from-"},{"question":"How does a lender verify the source of gifted equity injection funds when the donor is a foreign national?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-source-of-gifted-equity-injection-funds-when-the-donor-is-a-f"},{"question":"How does a lender verify equity injection funds that are sourced from a personal line of credit secured by non-personal real estate?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-that-are-sourced-from-a-personal-line-of-c"}],"related_terms":[{"term":"Self-directed IRA","url":"https://dealroom.so/glossary/self-directed-ira"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"IRA","url":"https://dealroom.so/glossary/ira"},{"term":"Minimum Equity Injection","url":"https://dealroom.so/glossary/minimum-equity-injection"},{"term":"Tangible Equity Injection","url":"https://dealroom.so/glossary/tangible-equity-injection"},{"term":"Hidden Equity Injection","url":"https://dealroom.so/glossary/hidden-equity-injection"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-from-a-self-directed-ira-sdira-structured-as-a-l","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}