Benetrends’ Larry Carnell Discusses Business Acquisition Equity Injections for SBA Loans Using 401K Plans
TWO PROGRAMS CHANGING THE LENDING LANDSCAPE
The two funding programs that have undoubtedly changed the lending for small businesses were engineered by Benetrends Financial, a business funding and consulting firm established in the early 1980s. The first program has been a relatively well-known vehicle in the franchise community for decades and its popularity has accelerated in the SBA and lending communities after receiving a formal Small Business Administration approval over a decade ago. Known as a ROBS (Rollovers as Business Startups) Arrangement, it was first introduced by Benetrends Financial as The Rainmaker Plan® in 1983. A ROBS plan is a debtfree funding solution that allows a person to draw from their retirement funds without incurring upfront taxes or early withdrawal penalties.
The recently introduced Rainmaker Advantage Plan® revolutionized how people buy and sell their businesses, especially following the recent Tax Reduction and Job Creation Act of 2018 (TRJC). This program allows business owners to realize the full appreciation of their business tax-free upon the sale of the business, given certain circumstances.