SBA 7(a) Q&A
Short answer
Yes, funds from certain retirement accounts can be used for your equity injection, typically through a Rollover for Business Start-ups (ROBS) arrangement.
ROBS plans allow individuals to invest their retirement savings into a new or existing business without incurring early withdrawal penalties or taxes. However, these arrangements are complex, involve specific IRS rules, and must be structured properly to comply with both IRS and SBA regulations.
If you have $80,000 in a 401k, you could roll over $50,000 into a new C-Corporation that then invests the funds as your equity injection for a $500,000 business acquisition, provided the ROBS plan is correctly established.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA 7(a) Loans Overview
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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