Rollover as Business Startups (ROBS)
Your Client's Equity Solution
Why Lenders Love Partnering With Us
Regular Communication
From weekly status update emails to regular check-ins, we’ll keep you apprised of your clients progress.
Conservative Nature
Guidant is serious about keeping our ROBS structures correct and compliant, every step of the way.
High Quality Service
Guidant will provide you with a dedicated point of contact who can answer any questions.
No Conflict of Interest
We respect your line of business and will discuss only the funding programs with which you’re comfortable.
How It Works:
Combining ROBS with Small Business Loans
Most lenders refer their clients to Guidant for our ROBS financing. This allows clients to use their retirement funds — without incurring tax penalties — as the down payment on a loan. This program is a simple and easy way for your clients to satisfy their equity injection requirements, expand their SBA buying capacity or simply preserve their cash savings.
Guidant forms a corporation on your client’s behalf, and then creates a 401(k) plan for that new business.
Next, Guidant facilitates rolling up to 100% of your client’s existing retirement funds to the new account with no tax penalties.
Once the money transfers into the new 401(k) plan, the plan makes an investment into the corporation.
The corporation, now cash-rich, can use those funds as the equity injection for a loan or as a secondary form of financing.
Most Retirement Plans Qualify
You don’t have to be a financial expert to use 401(k) business financing. All your clients need is at least $50,000 in a rollable retirement or pension account. Learn more about retirement or pension plans that qualify.
401(k)
This plan is usually sponsored by an employer. It is the most common plan used with ROBS.
Traditional IRA
This plan lets you invest pretax income that grows tax-deferred. Roth IRAs, in contrast, are not eligible for ROBS.
403(b)
This plan is available to individuals like employees of nonprofit organizations, public schools, and some hospitals.
Keogh
This plan is a tax-deferred pension plan available to self-employed individuals or unincorporated businesses.
TSP
A defined contribution plan for U.S. civil service employees, retirees, and some members of the military.
SEP
A straightforward retirement plan that any employer or self-employed individual can establish.
