Use Your Retirement Funds to Invest in Your Business

401(k) Rollovers as Business Start-up (ROBS) financing allows clients to fund a business using retirement funds they already have, tax-deferred and free of early withdrawal penalties.

This strategy allows you to use your existing pre-tax retirement account to invest in a business. ROBS allows you to buy stock in your new company, tax-deferred and penalty-free, all while helping you start or grow a business without taking on traditional debt.

ROBS is a non-debt funding solution that can be utilized as a stand-alone funding option or combined with a loan to complete a full funding package.

Why Use 401(k) / IRA Financing

 Utilize retirement funds without early withdrawal penalties
 Access capital without taking on traditional business debt
 No monthly loan payments or interest obligations
 Preserve cash flow during business start-up or expansion
 Can be combined with other financing solutions for larger projects
 No personal collateral or home equity required

This Program May Be a Good Fit For Clients Who:

 Don’t qualify for a traditional bank or SBA loan
 Need additional liquidity
 Need money for the equity injection portion of a project
 Are starting a new business or purchasing a franchise
 Want a debt-free business funding solution

ROBS Funding Plan Features & Requirements

 Secure funding FAST – Typically within (4) weeks
 3rd party administrator specializing in plan design, installation and administration
 Tax-deferred exit strategy program when selling your business
 Ability to continue setting aside tax-deductible retirement savings
 $50,000 minimum in eligible pre-tax retirement funds such as:
   Traditional 401(k)
   457 Plans
   TSP Accounts
   Traditional IRA Accounts

Why ROBS?

 Debt-free Funding + No Tax Penalties
 Quicker Path to Profitability (This is not a loan – no monthly payments or interest)
 No personal guarantees or home collateral required
 No minimum personal FICO credit score required

Eagle Bend Capital Financing offers the financing you need, when conventional lending sources cannot. If you would like to learn more about our 401(k) / IRA Financing solutions, or any of our other product solutions, contact us today.