Little-Known Business-Funding Option Awaits Your Discovery Unconventional IRA structure provides equity injection with use of retirement funds penalty-free By Guidant Financial Group, Inc. Although thousands have discovered this golden opportunity, some of the savviest lenders and borrowers are still unaware of this remarkable funding option: Individuals can utilize their IRA monies before retirement age to purchase a business or leverage a loan without incurring early distribution penalties. Thanks to the government’s 1974 ERISA laws, borrowers can self-direct up to 100% of their retirement funds into investments that include the purchase of a business or franchise. This option is ideal for those who want to improve their odds of securing leverage by providing a substantial down payment on SBA, conventional, commercial or other loans. While IRA, 401(k), Keogh, SEP, and other retirement funds could be used in this way for the past three decades, it’s only been in recent years that business and franchise buyers have begun seizing this opportunity. By using a structure similar to that of a self-directed IRA, a borrower can help finance their entrepreneurial endeavor and accelerate the growth of their retirement funds. Because it provides a means for company profits to be realized as investment returns within the account, the borrower’s retirement nest egg can grow along with the success of their business. The tax-deferred contributions they make to their account from company profits could potentially save them thousands of dollars in taxes. The benefits of tapping IRA funds to help finance a business or franchise purchase are many. This structure enables new business owners to lower overhead, generate additional operating capital, increase business success rates, expand their retirement account, and even offer a 401(k) to their employees. It also allows for multiparty purchases, so clients can buy a business with partners if they choose. Restructuring a retirement account to allow for a business purchase will require the services of financial services providers skilled in this area. Although more and more people are discovering this means to business funding, there are still only a handful of companies that specialize in creating these account structures. Using one’s own retirement funds for an equity injection helps take the anxiety out of the first step in business ownership . . . and it helps the buyer feel truly invested in their success. For further information, contact: Debra Lewis, Director of Business Development Lending Guidant Financial Group Tel: 888.472.4455 x3250 debra.lewis@guidantfinancial.com Or Andrew M. Linehan, Senior Vice President New York Business Development Corporation Tel: 1-800-923-2504 alinehan@nybdc.com

New York Business Development Corporation  |  Empire State CDC: The 504 Company  |  Statewide Zone Capital Corporation Corporate Headquarters: 50 Beaver St. Albany, NY 12207  |  1-800-9-BDC-504