Understand Your
Financing Options
Before You Need Them.
Capital Readiness is a planned capability within the I AM SHARK ecosystem. It will help business owners and buyers explore two distinct financing-readiness categories — SBA Lender Readiness and ROBS Readiness — before entering the SHARK DealRoom™.
Know Your Position Before the Conversation.
Most Main Street acquisitions require some form of financing. Understanding whether a buyer's qualifications, equity injection capacity, and the target business's cash flow align with lender requirements — or whether retirement funds may be available as an equity source — can shape the entire acquisition strategy.
Capital Readiness is informational. It does not constitute financial advice, a loan commitment, or a guarantee of funding. All financing decisions require independent professional review.
SBA Lender Readiness
Explore potential SBA financing fit based on buyer qualifications, equity injection capacity, business cash flow, DSCR, industry, and participating lender credit boxes.
SBA 7(a) loans are among the most common financing tools for Main Street acquisitions. Lender readiness analysis helps buyers understand how their profile and the target business's financials may align with lender requirements — before entering formal discussions.
SBA lender matching is a planned capability, not an active service. Any lender compatibility analysis is informational only and subject to independent lender underwriting and approval. I AM SHARK does not originate loans or guarantee SBA eligibility.
Factors Considered
Buyer Qualifications
Credit history, management experience, industry background
Equity Injection
Down payment capacity relative to acquisition price
Business Cash Flow
Historical earnings and DSCR relative to projected debt service
DSCR Analysis
Debt Service Coverage Ratio evaluated against lender minimums
Industry Fit
Lender appetite varies by industry — some sectors face restrictions
Lender Credit Boxes
Each participating lender has unique underwriting criteria
Not Included
A loan commitment or pre-approval
A guarantee of SBA eligibility
A referral to a specific lender
Financial or legal advice
ROBS Readiness
Explore whether eligible retirement funds — including certain 401(k) and other qualifying retirement accounts — may be available to help finance a business acquisition or provide an equity injection.
Rollovers as Business Startups (ROBS) is a financing strategy that allows individuals to use eligible retirement funds to invest in a business without triggering early withdrawal penalties — when structured correctly. ROBS requires a specific corporate and retirement plan structure and must be set up and maintained by a qualified specialist.
ROBS may eventually be supported through a specialist partner relationship. No partner has been formally engaged at this time and no partner is displayed as an official partner of I AM SHARK.
ROBS eligibility and tax treatment require independent professional review. I AM SHARK does not provide tax, legal, or financial advice. No tax-free treatment, guaranteed funding, or loan approval is implied or promised. ROBS structures carry ongoing compliance obligations — consult a qualified ROBS specialist before proceeding.
Key Considerations
Eligible Retirement Accounts
Certain 401(k) and other qualifying retirement accounts may be eligible
Equity Injection Source
Retirement funds may serve as equity injection for an acquisition
Business Acquisition Financing
May help finance a business purchase in whole or in part
Structure Requirements
ROBS requires a specific corporate and plan structure — professional setup required
Independent Professional Review
Eligibility and tax treatment must be reviewed by a qualified professional
Important
ROBS is not a loan and does not require repayment in the traditional sense, but it does carry ongoing compliance obligations including annual plan administration, IRS reporting, and fiduciary responsibilities. Independent professional review is required before any ROBS structure is established.
SBA vs. ROBS — At a Glance
SBA Lender Readiness
Coming SoonType
Debt financing — loan repayment required
Source
SBA-participating lenders
Key factor
DSCR, equity injection, buyer qualifications
Collateral
Often required
Ongoing obligation
Monthly loan payments
Professional needed
Lender, CPA, attorney
ROBS Readiness
Coming SoonType
Equity — uses retirement funds, not a loan
Source
Eligible retirement accounts (e.g. 401(k))
Key factor
Account eligibility, plan structure, compliance
Collateral
Not required (equity investment)
Ongoing obligation
Annual plan administration and IRS reporting
Professional needed
ROBS specialist, CPA, ERISA attorney
This comparison is informational only. Consult qualified financial, legal, and tax professionals before making any financing decision.
Start With Your MAKO Score™
Capital Readiness is a planned capability. Today, the best first step is completing your MAKO Business Readiness Score — which evaluates the financial and operational dimensions that lenders and buyers examine most closely.
Capital Readiness is a planned capability of I AM SHARK — not an active service. Nothing on this page constitutes financial, tax, or legal advice.