SBA loan basics
Short answer
Yes, you can potentially use funds from your 401(k) or IRA as an equity injection (down payment) for an SBA 7(a) loan, typically through a process called Rollover for Business Startups (ROBS).
Using retirement funds requires a specific, complex transaction structure known as ROBS, where funds are rolled over into a new C-Corporation that then purchases the business. These funds must be unencumbered and properly documented to meet SBA requirements for equity injection.
An individual uses a ROBS structure to roll $150,000 from their 401(k) into a new C-Corp. This $150,000 then serves as the equity injection for a $1,000,000 SBA 7(a) loan to acquire a business.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA Form 1919 - Borrower Information Form
FAQ Related to Recent SBA Procedural Notices
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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