Glossary · Your money in the deal
In short
A Rollover for Business Start-up (ROBS) is a strategy allowing you to use your 401(k) or IRA funds to invest in a business without incurring taxes or early withdrawal penalties.
Using a ROBS plan for your equity injection in an SBA 7(a) loan is permitted, but requires strict adherence to IRS and Department of Labor rules. Lenders will verify that the ROBS funds are truly unencumbered and treated as equity, not debt. Work with experienced professionals to set this up correctly.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
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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