Glossary · People and paperwork
In short
These are IRS rules that prevent self-dealing and conflicts of interest when using retirement funds (like a ROBS) to invest in a business. They ensure the funds are used for the benefit of the retirement plan, not the individual.
If you're using a ROBS (Rollover for Business Startups) for your equity injection, strict adherence to these rules is critical. Violations can lead to severe penalties, including taxes on the funds as an early distribution. Work with an experienced ROBS provider to ensure 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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