Business Funding Comparison
ROBS vs the alternatives
Fund your business or franchise with your own retirement savings, with no loan, no interest, and no equity given up. Compare the true cost against an SBA 7(a) loan, HELOC, or early distribution to see the debt, equity, and tax tradeoffs side by side.
- an SBA 7(a) loan
- a HELOC
- taking an early distribution
Your scenario
ROBS assumptions
SBA 7(a) loan assumptions
HELOC assumptions
Early distribution assumptions
- Total cost over 10 yrs
- Monthly paymentNone
- Cash out of pocket up front
- Ownership retained100%
- Debt taken on$0
- Credit check / collateralNot required
What's at stake
- Monthly payment
- Cash out of pocket up front
- Ownership retained
- Debt taken on
- Credit check / collateral
What's at stake
Cumulative cost of funding
Want help putting this into action?
ROBS basics: A ROBS structure rolls funds from an eligible retirement account (401(k), traditional IRA, etc.) into a new 401(k) plan that purchases stock in your C corporation — with no taxes, no early-withdrawal penalty, and no debt. You generally need at least ~$50,000 in rollable retirement funds, and the business must be an active operating company. Setup and ongoing plan administration fees apply, which is the "cost" shown for ROBS. Defaults reflect IRA Financial's flat-fee ROBS pricing: a $3,500 one-time setup fee and $1,200 per year for plan administration, including audit protection — with no monthly billing or asset-based charges.
This calculator is for educational purposes only and uses simplified assumptions. It is not tax, legal, investment, or lending advice. Actual loan rates, fees, valuations, and ROBS administration costs vary. Consult a qualified professional before choosing a funding strategy.