Creative Ways to use ROBS?
If you created a C-Corp management company for the purposes of providing admin services to your flow through operating entity and funded the C-Corp through ROBS, could you lend the excess cash on the balance sheet (i.e., the funds provided through ROBS) to your operating company? Assuming the management company actually supported the business in real ways (e.g., payroll, accounting, managed company owned real estate, etc.), is this possible?
If so, I think this could help in a few ways:
1) Help provide additional working capital to the business (e.g., front payroll, other short term lending needs, etc.)
2) Provide capital to fund growth capex / growth initiatives.
3) Increase overall cash flow by replacing more expensive SBA debt on interest only / more attractive terms.
4) Allow you to continue receiving the benefits of owning a flow through entity for the main operating company while being able to tap into your retirement accounts to support the success of the business.
Would love to hear anyone's thoughts on whether this is possible from any experts in the space or anyone who has had personal experience with ROBS.