Successfully funding franchisees since 1997, First Financial is your one-stop source for all small-business financing needs from SBA Express Loans, equipment leasing, merchant services and now, with the recent addition of ROBS plans. By Suzy Granger
Successfully funding franchisees since 1997, First Financial is your one-stop source for all small-business financing needs from SBA Express Loans, equipment leasing, merchant services and now, with the recent addition of ROBS plans.
First Financial’s ROBS plan allows your candidate to access 401(k)/IRA funds with no tax and no penalty. This is not a loan, the candidate takes existing available qualified funds, rolls them into a specific 401(k) plan we have established and buys stock with existing 401(k) funds. These will fund their Operating Entity (a C-Corp is required). Depending upon 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. Did you know the timeline to complete this action is 30 days? First Financials fee for this structuring is the standard $4,995 for this structure. Our referring coach receives $1,000 for every lead that moves forward in an engagement.
Here is a comparison:
First Financial is the only ROBS provider in the market that allows your candidate to split this engagement into two pieces. For $1,000, we establish the required C-Corp. With the proper entity, name, and EIN, your client can accurately fill out the loan application. Upon loan approval, the remaining balance of $3,995 becomes due. This keeps your future franchisee from having to spend the full $4,995 out-of-pocket before obtaining loan approval.
First Financial has partnered with QuickFee where your candidate may split the cost of the ROBS plan into 3-, 6-, 9-, or 12-month installments. First Financial will begin our engagement with payment of the first installment. Using QuickFee does not slow down the deal or commissions paid.
ROBS interest rates are nominal – 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 with SBA loans. The application fee is also nominal at $50. There is no prepayment penalty and the transaction is completely ROBS compliant.
Share the happy news with your prospects! Instead of having to come up the full $4,995 prior to being approved for a loan, if your candidate selected the 12-month installments, with the application fee, they can get started for only $466.25!
– Suzy Granger
First Financial’s Suzy Granger has been providing ROBS Plans for 20 years. Her expertise is how a ROBS Plan and an SBA Loan go together. Appearing before the IRS and SBA she was able to have an impact on the updated ROBS section of the SBA’s Standard Operating Procedures. Suzy has a passion for entrepreneurs. You will frequently hear her say: “A true entrepreneur will find a way to get a deal done and I respect that.”