The Trump Administration’s government shutdown is now into three weeks with little indication of a resolution. If you’re in the early stages or even middle stages of pursuing funding for your new business or franchise, you’ve likely heard some buzz about how this status will or could possibly affect you. Here’s what you need to know:
There are NO known delays in ROBS (Rollover as Business Startup) funding, also commonly referred to as Self-Directed 401(k). This funding source is based on the movement of your existing qualified retirement funds into a new fund – your brand new corporation for your new business or franchise. ROBS funding is penalty-free, tax-deferred and allows you to start your business or franchise on day on with more equity.
ROBS funding is perfectly suited for lots of people, including:
- Baby boomers who want to leave corporate America and start their own businesses
- Millennials who are starting an online business
- Entrepreneurs who are interested in buying a franchise that is already open
- Business owners with investors
- Husband-and-wife teams who want to combine retirement funds to start a new business
These are just a few examples, of course, but you get the picture: ROBS funding = great option for multiple business owner types. And, not to mention, ROBS plans can be used for any business or franchise type – service-based franchises, retail business, online boutique, and much more!
Through working relationships, Tenet Financial Group is learning that individuals who are awaiting an SBA loan number are experiencing some delays in processing of their application. At this time, those who had a loan number prior to the shutdown appear to be better shape than those who did not have a loan number prior to the government shutdown. That’s not to say that an individual cannot or should not pursue an SBA loan at this time; only that delays can potentially occur.
Tenet Financial Group has more than eight decades of combined funding experience with specific expertise in ROBS funding. And, we’re continuing to help clients get started on SBA loan paperwork and other necessities for business funding as well during the government shutdown. If you have questions about your business funding options, contact Tenet Financial Group for a no-obligation discussion with one of our senior consultants: 888-901-3335, ext. 9. We also offer a free funding calculator on our website at this link and it’s a helpful place to plug in some quick data and explore your funding options too.