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ROBS and SBA Funding-Mix Calculator

Build a transparent sources-and-uses worksheet for a hybrid ROBS and SBA scenario. Separate retirement-plan equity from buyer cash, separate financed fees from upfront uses, and show whether the entered mix balances before anyone treats the file as ready.

Sources and uses

Total project cost, ROBS stock-purchase proceeds, buyer cash, other equity or credit, financed fees, SBA debt, gap and surplus.

Debt-service check

Optional amortizing payment, annual debt service, monthly equivalent, total payments and DSCR when cash flow is supplied.

Bounded result

No eligibility, approval, valuation, tax, legal, fiduciary, collateral, guaranty, affordability, or recommendation claim.

Enter one funding mix

Use signed estimates, term sheets, or diligence numbers when available. The worksheet uses native FormData, does not save inputs, does not write local or session storage, and does not append query-string persistence.

Total uses and equity sources

Total project requirement before any fees financed into the SBA loan. Include purchase price, buildout, inventory, working capital, reserves, deposits, and buyer-paid closing uses only once. Input accepts whole dollars, rounded to the nearest $1,000.

Cash the corporation receives when the qualified plan purchases employer stock. This is retirement-plan equity, not the personal cash. Input accepts whole dollars, rounded to the nearest $1,000.

Personal cash or other upfront borrower cash contributed outside the plan. Keep this separate from retirement-plan stock-purchase proceeds. Input accepts whole dollars, rounded to the nearest $1,000.

Other documented non-debt source or contractual credit you want to count in the sources ledger. Confirm whether the lender accepts it before relying on it. Input accepts whole dollars, rounded to the nearest $1,000.

SBA loan and optional debt-service inputs

SBA loan amount mode

Residual mode calculates the loan needed to balance the ledger. Explicit mode tests a loan amount from a term sheet or planning scenario.

Used only in explicit mode. In residual mode, the calculator ignores this field and solves the SBA loan amount needed to balance sources and uses. Input accepts whole dollars, rounded to the nearest $1,000.

Fees included in the loan balance only when loan documents finance them. Leave 0 when fees are paid upfront, waived, unknown, or outside the SBA note. Input accepts whole dollars, rounded to the nearest $100.

Nominal annual rate used only for the optional amortizing debt-service calculation. It is not an SBA rate quote. Input accepts two decimal places.

Modeled amortization term. This does not decide permitted SBA maturity or lender policy. Input accepts half-year increments.

Choose how often the modeled term-loan payments are made. Input accepts one of the listed payment frequencies.

Optional annual cash flow available for debt service. Enter 0 when the funding mix should show payment math without DSCR. Input accepts whole dollars, rounded to the nearest $1,000.

SBA loan modeled

$500,000

Gap or surplus

Exact balance

Annual debt service

$80,961

Funding ledger

Total uses including financed fees

$720,000

Project cost $720,000 plus financed fees $0.

Non-debt equity

$220,000

ROBS equity $180,000, buyer cash $40,000, and other documented equity $0.

Funding status

Exact balance

Sources equal uses under these inputs.

DSCR

Not supplied

Shown only when annual cash flow available for debt service is entered and the modeled SBA loan amount is greater than $0.

Shares of total uses

ROBS plan stock-purchase proceeds
25.00%
Upfront buyer cash
5.56%
Other documented equity or credit
0.00%
SBA debt
69.44%
Financed fees as part of uses
0.00%

Payment per period = SBA loan amount × periodic rate ÷ (1 − (1 + periodic rate)^−number of payments). Annual debt service = payment per period × payments per year.

$500,000 × 0.875% ÷ (1 − (1 + 0.875%)^−120) = $6,747 per monthly period; $6,747 × 12 = $80,961 annual debt service.

Unrounded details: total uses including financed fees 720000, non-debt equity 220000, SBA loan 500000, funding gap 0, periodic rate 0.00875, payment per period 6746.749838777335, annual debt service 80960.99806532802.

Payment per period

$6,747

120 monthly payments are modeled when SBA debt is greater than $0.

Monthly equivalent

$6,747

Annual debt service divided by 12. It is only a comparison measure when another payment frequency is selected.

Total payments

$809,610

Modeled payments over the entered term, before lender-specific variable-rate, prepayment, servicing, or late-payment effects.

Total interest

$309,610

Total payments minus the modeled SBA loan amount. Financed fees are shown separately in the funding ledger.

Assumptions and limits

  • ROBS plan stock-purchase proceeds are modeled as corporate equity received for employer stock. They are not modeled as the personal cash.
  • SBA loan amount is either the residual needed to balance sources and uses or the explicit amount entered. The worksheet does not decide whether a lender or SBA will accept any source as equity injection.
  • Financed fees are separated from the project cost and included in total uses only when entered as financed into the loan.
  • Debt-service math reuses the standard amortizing payment formula and appears only for the entered loan amount, rate, term, and payment frequency.
  • This educational worksheet does not determine ROBS eligibility, prohibited transactions, valuation, SBA eligibility, approval, collateral, guaranties, affordability, fiduciary duties, tax results, legal results, or a recommended funding mix.

How to use the worksheet

Start with total project cost before financed fees. Count each use once: purchase price, franchise fee, equipment, deposits, inventory, professional fees paid outside the note, working capital, reserves, closing costs and contingency. Then enter the sources that may fund those uses.

ROBS equity means cash the C corporation receives after a qualified plan purchases employer stock. It is not a personal withdrawal and not personal cash. Upfront buyer cash is separate money contributed outside the plan. Other documented equity or credit is a user-entered planning bucket, not a lender acceptance decision.[3][4]

Model boundaries and formulas

Residual mode solves the SBA loan as: total project cost plus financed fees minus ROBS equity, buyer cash and other equity. Explicit mode uses the SBA loan amount entered and reports a funding gap when uses exceed sources or a surplus when sources exceed uses.

Funding shares use total uses including financed fees as the denominator. Debt service uses the same amortizing formula as the SBA Debt-Service Calculator: payment per period equals loan amount times periodic rate divided by one minus one plus periodic rate raised to the negative number of payments. At a zero interest rate, payment per period equals loan amount divided by number of payments.

What this tool does not determine

The worksheet does not determine ROBS eligibility, plan qualification, rollover availability, prohibited transactions, employer-stock valuation, fiduciary prudence, employee-plan duties, Form 5500 filing, source-account tax character, SBA eligibility, SBA approval, equity injection requirement, source-of-equity acceptability, rates, terms, fees, collateral, personal guaranty, debt affordability, tax outcome, legal outcome, business quality, or a recommended mix.[1][2][3][4][5]

A balanced ledger only means the arithmetic ties under the entered assumptions. It does not mean the lender, franchisor, seller, plan fiduciary, valuation professional, CPA or attorney will accept the same file.

Records to gather before relying on the numbers

Gather the business purchase agreement or franchise disclosure document, itemized use-of-funds schedule, lender term sheet, SBA lender conditions, source-of-funds evidence, rollover and plan documents, stock subscription records, valuation support, escrow instructions, seller notes, fee invoices, reserve requirements, lease or equipment obligations, personal-guaranty forms and professional review notes.

Keep plan trust records, corporate bank records, lender records and personal cash records separate. The IRS ROBS project specifically asks about rollover or direct-transfer records, participant information, stock valuation and stock purchases, business information and filings. Mixing these records can make a clean arithmetic result unusable in review.[3]

Frequently asked questions

What does this funding-mix calculator decide?

It reconciles user-entered sources and uses. It shows ROBS plan stock-purchase proceeds, upfront buyer cash, other documented equity, SBA debt, financed fees, shares of total uses, and any funding gap or surplus.[1][3]

Does it decide whether ROBS money counts as SBA equity injection?

No. The worksheet never treats ROBS proceeds as personal cash or as automatically acceptable SBA equity. Lender policy, SBA program rules and the loan file decide source acceptability.[1][3]

What is residual SBA loan mode?

Residual mode calculates the SBA loan amount needed to make total sources equal total uses after ROBS equity, buyer cash, other equity and financed fees are entered.

When should explicit SBA loan mode be used?

Use explicit mode when a term sheet, lender conversation, or planning scenario already gives a loan amount and you want to see whether the ledger has a gap or surplus.

Does the optional debt-service result approve affordability?

No. It applies an amortizing payment formula to the entered amount, rate, term and payment frequency. It does not underwrite cash flow, collateral, guaranties, eligibility, fees, variable rates, taxes, or repayment ability.

Sources

These sources support the public claim boundaries for SBA loan mechanics, ROBS structure, plan duties and funding worksheet limitations. They do not approve any individual transaction.

  1. [1] SBA 7(a) loans

    SBA states that 7(a) is a loan-guarantee program through lenders, lists uses such as working capital, equipment, changes of ownership and multiple-purpose loans, states eligibility factors, and says most 7(a) term loans are repaid with monthly principal and interest from business cash flow. Checked Aug. 13, 2026; page modified July 27, 2026.

  2. [2] SBA SOP 50 10

    SBA describes SOP 50 10 as the loan-origination policies and procedures governing 7(a) and 504 loans, with core requirements and program-specific requirements. Checked Aug. 13, 2026; Version 8 effective June 1, 2025; page last updated Sept. 3, 2025.

  3. [3] IRS ROBS compliance project

    IRS describes a ROBS as an arrangement where retirement funds are used to pay for business start-up costs and the plan uses rollover assets to purchase stock of a new C corporation. The page also identifies filing, valuation, plan-operation, prohibited-transaction, business-failure, bankruptcy, lien and dissolution concerns. Checked Aug. 13, 2026; page last reviewed Nov. 16, 2025.

  4. [4] IRS ROBS guidelines memorandum

    The IRS memorandum describes the typical sequence: a C corporation sponsors a qualified plan, rollover or direct transfer assets enter the plan, the participant directs purchase of employer stock, and the corporation uses proceeds for the business. It states ROBS are not noncompliant per se but should be developed case by case, and flags nondiscrimination, prohibited-transaction and valuation issues. Checked Aug. 13, 2026; memorandum dated Oct. 1, 2008.

  5. [5] DOL Form 5500 series

    DOL describes Form 5500 reporting and filing materials for employee benefit plans. This supports the boundary that a ROBS plan remains a real plan with ongoing reporting and administration questions outside a funding-mix worksheet. Checked Aug. 13, 2026.