Successfully funding franchisees since 1997, First Financial is your complete source for all your small-business financing needs from SBA Express Loans, equipment leasing, and business acquisition, to Roll-Over Business Start-up (ROBS) plans. By Suzy Granger
Successfully funding franchisees since 1997, First Financial is your complete source for all your small-business financing needs from SBA Express Loans, equipment leasing, and business acquisition, to Roll-Over Business Start-up (ROBS) plans.
First Financial’s ROBS plan allows perspective franchisees to access 401(k)/IRA funds with no tax and no penalty. This is not a loan: The potential franchisee takes existing available qualified funds, rolls them into a specific 401(k) plan we establish, and buys stock with those funds. This will fund their Operating Entity (a C-Corp is required). Per section 408(e) of the Employee Retirement Income Security Act of 1974 (ERISA), the body of law that governs what you can and cannot do in a 401(k) plan, individuals can invest in not only publicly traded stock but also in privately held stock, in the form of their C-Corp.
You may already be familiar with this funding option. But did you know the timeline to complete this process can be as little as 30 days? We manage the details of the funding so you can focus on starting your business! First Financial’s fee for this structuring is $4,995.
ROBS interest rates range from 2.95% for three months to 8.95% for 12 months. There is no credit pull to complete this transaction – something you want to avoid if you are pairing it with a traditional SBA loan. There is no prepayment penalty, and the transaction will be compliant with all ROBS regulations.
We strive to keep your costs as low as possible. The application fee is only $50, and we have several options to defer much of the up-front fee. Instead of having to come up with the full $4,995 prior to being approved for a loan, a 12-month installment plan can be selected. Including the application fee, you can get started for only $466.25!
Let us help you or your clients get the funding needed today!
SMOOTH ROLL
First Financial is the only ROBS provider in the market that allows franchisees to split this engagement into two pieces. For an initial payment of $1,000, the required C-Corp is established including the proper entity, name, and EIN. This information is required on the application. Upon loan approval, the remaining balance of $3,995 becomes due. This keeps future franchisees from having to spend the full $4,995 out-of-pocket before obtaining funding approval!
QUICKFEE
First Financial has partnered with QuickFee, where you can split the cost of the ROBS plan into three-, six-, nine- or 12-month installments. First Financial will begin our engagement with payment of the first installment. Using QuickFee does not slow down funding or delay the process of establishing the franchise.
First Financial’s Suzy Granger has been providing ROBS Plans for 20 years. She is expert in ROBS Plans and how they can pair smoothly with an SBA Loan. Suzy has a passion for entrepreneurs and appeared before the IRS and SBA to influence the latest ROBS section of the SBA’s Standard Operating Procedures.
– Suzy Granger