Glossary · People and paperwork
In short
This is a transaction involving an ERISA-governed retirement plan (like a 401k) that is deemed illegal due to a conflict of interest. Buyers using a ROBS structure must strictly avoid these to protect their retirement funds from severe penalties.
If you're funding your equity injection with a Rollover for Business Startups (ROBS) plan, the IRS and Department of Labor prohibit certain dealings between your retirement plan and you or your business. For example, your ROBS plan cannot lend money to you personally. Work with a ROBS specialist to ensure strict compliance.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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