The information contained here may not be typical and does not guarantee returns. Background, education, effort, and application will affect your experience. Your results will likely vary.
Owner nation,
When it comes to financing an acquisition, most buyers run into the same challenges:
📌 SBA loans? They’re a popular and powerful option, but they come with years of debt, interest, and personal guarantees.
📌 Seller financing? Not every deal allows for it, and negotiating terms can be tough.
📌 Investors? They may want more than just a share of the business (like a say in how you run it).
But there are other options, including one that’s been around since 1974 but is often overlooked — and we’re about to tell you all about it…
It’s called ROBS (Rollovers for Business Startups), and it’s how you can turn your 401(k) into your small business co-founder.
Instead of waiting decades, if you want to (and can afford it), you can actually use your own funds tax-free to do things like:
✅ Buy an existing business (that’s already profitable).
✅ Fund your startup (without taking on debt).
✅ Make a down payment on an SBA loan.
According to the U.S. Bureau of Labor Statistics, 45% of businesses fail during their first five years. Guidant says over 80% of their clients who funded their business with ROBS have been in business for 4 years or more.
For the right buyer, ROBS can be a way to diversify a retirement strategy — by putting a portion of retirement funds into a business you work to grow, rather than keeping everything stashed away.
But let’s be clear: ROBS isn’t a perfect solution for everyone.
✔️ It’s not free money — you’re investing your own retirement savings, and if the business fails, you take the loss.
✔️ It requires careful structuring — the IRS has strict compliance rules that must be followed.
✔️ It can help alleviate the burden of debt — unlike an SBA loan, there are no monthly payments, but that also means there’s no lender taking on part of the financial burden.
For some, ROBS is a really interesting way to fund business ownership now. That’s why understanding all of your financing options is critical.
👉 Now, here’s what you need to know about ROBS…
We see lots of businesses do really well, and we see lots of businesses struggle. Most don’t fail because the owner didn’t work hard. They fail because they run out of cash. That’s why starting off with liquidity and less debt can be a real advantage.
Starting off with less debt, loan payments, and monthly interest certainly doesn’t guarantee success — but it can give you more room to build, and it’s a way to reinvest more profits into growing a business and building your retirement.
It’s a technical process, and it has to be set up correctly to comply with IRS rules, but this is how it looks:
Sound daunting? That’s why firms like Guidant Financial exist — to make sure everything is structured legally, effectively, and efficiently.
Like any funding strategy, ROBS has trade-offs. The key is understanding the risks and structuring it correctly so you can make an informed decision. For example:
✔️ Your Money, Your Risk → If the business ends up underperforming, you risk losing your retirement savings.
✔️ Strict Compliance Rules → The IRS has clear regulations on how ROBS funds can be used. If you don’t structure it correctly, you could face serious tax consequences — which is why working with experts is essential.
As opposed to SBA funding, with ROBS, you’re investing your own capital instead of borrowing from a lender. In today’s high-rate environment, that’s a potential advantage — avoiding interest-heavy financing can mean more cash flow to reinvest in the business.
Yes. ROBS is a legal, IRS-acknowledged financing method — but it must be structured correctly. ERISA and sections of the Internal Revenue Code allow retirement plans to invest in a business, but there are strict compliance rules to follow. If the setup is done incorrectly, it could trigger tax liabilities or penalties.
That’s why most people work with a specialized firm like Guidant to handle the process correctly.
ROBS can be used to do things like:
✅ Buy an existing business
✅ Start a business from scratch
✅ Open a new franchise location
✅ Buy an existing franchise location
The key restriction? Your involvement in the business must be active.
🚫 You cannot use ROBS for things like:
As long as the business is actively operated and meets ERISA guidelines, ROBS can be a viable funding option.
401(k)s, 403(b)s, TSPs, Traditional IRAs, SEPs, and Keoghs all work.
ROBS is a powerful financing tool, but it comes with strict regulations. If you’re considering it, make sure you understand the risks, compliance requirements, and potential impact on your retirement.
The best approach is working with a firm that specializes in ROBS to ensure everything is structured correctly. Guidant has helped over 30,000 small business builders navigate these kinds of processes.
Now, let’s talk about what’s happening over on Main Street…
Most deals get torn apart behind closed doors. This time, you get a front-row seat.
On Feb 10 @ 6PM CST, Codie & her Head of M&A are breaking down a real deal live. No theory, no fluff. Just raw, unfiltered deal analysis. What you’ll get for free, if you come:
✅ Watch a deal dissected in real-time — what’s good and what to watch for.
✅ Learn how to create your Deal Box — so you know exactly what fits you and how to identify it.
✅ Spot hidden landmines before they blow up a deal — red flags, bad terms, and costly mistakes.
✅ LIVE Q&A with Codie — get biz-buying questions answered.
🚀 90 minutes. All action. No BS.
Reserve your spot now before it's too late:
Click HERE to Reserve Your Spot
Whether you like it or not, we’re all now front-row spectators to a live, high-stakes case study in a global game of leverage. Here’s what to know about President Trump’s latest tariff threats on Canada, Mexico, and China:
✔️ The Threat: 25% tariffs on Canadian and Mexican imports, 10% on Chinese goods. The goal? Pressure these countries to tighten border controls and crack down on illicit trade.
✔️ The Stakes: If the tariffs hold, supply chain costs will rise — and eventually could impact everything from equipment and raw materials to food and retail goods.
✔️ The Update: Mexico and Canada already agreed to make concessions and come to the table, so the tariff threats toward them have been postponed for 1 month. Early signs suggest negotiations are going as Trump hoped.
What Now? Business owners should stay sharp, assess supplier relationships, and plan for potential cost shifts. If this really is just a pressure campaign, it may fade fast — but if not, Main Street could feel it down the road.
1) How SMBs can get tens of thousands of $ of free publicity. Link ↗️
2) 1 estimate of Main Street acquisition multiples based on SDE. Link ↗️
3) Here are 9 negotiation tips for seller financing. Link ↗️
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