Glossary · Your money in the deal
In short
A financing strategy allowing you to use your retirement funds, such as a 401(k) or IRA, as an equity injection for a business acquisition without incurring taxes or penalties. It involves setting up a new C corporation and a qualified retirement plan.
ROBS is a common but complex way to fund your down payment without personal income tax consequences. You must work with a specialist firm to establish a compliant structure, as errors can lead to severe penalties. Lenders are accustomed to seeing ROBS structures for equity.
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.
Figure out your down payment and equity injection
Tell us your purchase price and how you're funding the down payment — we'll sanity-check the equity injection and show what lenders will actually accept.
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