How Candidates Fund a Mobility Plus Franchise
Most candidates use an SBA 7(a) loan, ROBS (retirement rollover), or a combination of both. Others layer in conventional credit, a securities-backed line of credit, equipment leasing, or personal equity. Mobility Plus is SBA-eligible (Identifier Code S4390). Here is a clear overview of the main options and when they are typically combined.
Plan for More Than Opening Day
A common mistake is underestimating capital needs. Opening costs get a business through the door; working capital gets it to breakeven. Until revenue covers operating expenses, the business runs at a loss. Adequate reserves—and a funding mix that leaves room for unexpected costs—are often the difference between a stable launch and undercapitalization.
The right mix depends on timeline, risk tolerance, credit history, cash on hand, retirement assets, and whether you are opening one location or planning multi-unit growth. Questions worth answering early: Are you buying an existing operation or starting new? Do you have cash for a typical lender equity injection? What are your short- and long-term goals, and how long do you expect to own the business?
Official SBA Recognition
The U.S. Small Business Administration has reviewed Mobility Plus and determined the brand is eligible for SBA financial assistance. This listing allows lenders to process applications more efficiently.
SBA Franchise Identifier Code: S4390
View the official listing in the SBA Franchise Directory .
Placement in the directory confirms eligibility for SBA assistance. It is not an endorsement of the franchise and does not guarantee loan approval. Lenders make final decisions based on the applicant’s credit, experience, and other factors.
Three Primary Funding Paths
Most Mobility Plus candidates choose one of these three approaches. Other tools—conventional loans, securities-backed credit, home equity, equipment leasing, and personal savings—are often used to fill gaps rather than as the sole source of capital.
1. SBA 7(a) Loan
Bank or lender financing partially guaranteed by the SBA. An SBA 7(a) loan can fully fund your Mobility Plus franchise investment—including the franchise fee, equipment, build-out, inventory, and working capital—when you meet the lender’s equity and underwriting requirements.
2. ROBS
Use funds from a qualified retirement account (401(k), traditional IRA, or similar) to invest in your business without early-withdrawal penalties or immediate taxes when structured correctly. Provides debt-free capital that can fund equity, fees, or startup costs.
3. SBA + ROBS
Combine both: use ROBS to fund all or part of the personal equity injection that SBA lenders typically require, then use an SBA 7(a) loan for the balance of the investment. This approach can significantly reduce the cash you need from savings or other liquid assets.
Understanding the SBA 7(a) Loan Process
The SBA 7(a) program is the most common way candidates finance a Mobility Plus franchise. The SBA does not lend directly. You work with an authorized lender; the SBA guarantees a portion of the loan, which often results in longer terms and more attractive rates than conventional financing.
Typical 7(a) features include funding ranges from small amounts up to several million dollars, terms of about 7–10 years (longer when real estate is involved), lower down payments than many conventional products, and no prepayment penalty on loans with a term under 15 years. Lenders still apply the traditional “five C’s”: character, cash flow, credit, collateral, and conditions.
A 20% cash injection is commonly required. ROBS proceeds can often satisfy that equity requirement. Another SBA program, CDC/504, is used mainly for long-term real estate or major equipment when a project involves a larger fixed-asset purchase.
During discovery, our Director of Finance prepares and submits your information for an SBA prequalification. Significant document work and full loan packaging do not begin until after you have been awarded a franchise and have paid the franchise fee. That fee counts toward your required personal investment under SBA guidelines.
Confirm Franchise Eligibility
Mobility Plus is listed in the SBA Franchise Directory under Identifier Code S4390. This confirms the brand is eligible and allows lenders to process applications efficiently.
Prequalification During Discovery
Our Director of Finance prepares and submits your information for an SBA prequalification with lenders in our network. This early step helps both parties understand potential financing options before a franchise is awarded.
Franchise Award & Fee Payment
Once you are awarded a Mobility Plus franchise and pay the franchise fee, that fee counts toward the personal equity/investment required by the SBA. Full loan packaging begins at this stage.
Full Loan Packaging
Our Director of Finance works with you and a portfolio of SBA-approved lenders to prepare and submit the complete loan package. Matching the right lender to your profile matters—credit boxes and industry appetite vary by bank.
Lender Underwriting & SBA Guarantee
The selected lender reviews the full package. Because Mobility Plus is already in the SBA Franchise Directory, the process is typically more streamlined. The lender then requests the SBA guarantee.
Closing & Funding
After final approval, loan documents are signed and funds are disbursed according to the approved use of proceeds (remaining investment, equipment, build-out, working capital, etc.).
Typical Timeline
Most SBA 7(a) franchise loans take 60–90 days from a complete formal application (after franchise award) to funding. Preferred Lenders can sometimes move faster depending on the completeness of the package and the applicant’s profile.
Other Lending Options
SBA 7(a) is the workhorse for many candidates, but it is not the only debt product. These options can stand alone in the right profile or sit alongside SBA and ROBS.
Conventional Loans
Bank or non-bank term loans and commercial mortgages without an SBA guarantee. Often close faster than SBA, with more flexibility on use of proceeds. Typically require strong credit, collateral, a personal guarantee, and a track record—startups can be harder to place. Terms are usually shorter and approval rates are lower than SBA.
Securities-Backed Line of Credit
A line of credit collateralized by an investment portfolio rather than your home. You generally keep the securities in your name, continue to receive dividends and appreciation, and avoid selling assets (and realizing capital gains). Borrowing capacity is often in the 60%–95% range of eligible holdings. Approval can be relatively fast. Market drops can trigger a maintenance call.
Home Equity / HELOC
A lump-sum home equity loan or a revolving HELOC. Often easier and cheaper than unsecured credit when you have sufficient equity, income, and credit. Interest may be tax-deductible in some cases but is not a business expense. Your home is at risk if payments stop. HELOC rates can move with prime.
Equipment Leasing
Finance vehicles, furniture, computers, or specialized equipment—often up to 100% of equipment value, with a simple application and a first-month payment to start. Conserves cash and can help with technology that ages quickly. Leasing usually costs more over the full term and does not build equity in the asset. It can also use part of your available credit.
Rollover for Business Startups (ROBS)
ROBS is a financing strategy that allows you to use funds from a qualified retirement account—such as a 401(k), traditional IRA, or similar pre-tax plan—to invest in your own business without triggering early-withdrawal penalties or immediate income taxes when the structure is set up correctly.
A taxable early withdrawal is expensive. On a $200,000 account, a 10% penalty plus ordinary income tax can leave only about 60% of the original balance for the business. ROBS is designed to avoid that outcome by using two familiar corporate practices: a trustee-to-trustee rollover into a new qualified plan, and a C-Corporation whose stock the plan is permitted to own.
Eligibility is driven mainly by the type of retirement account and the balance available—not by credit score, prior ownership experience, or on-hand collateral. Many programs look for at least about $50,000 in eligible funds. Many candidates use ROBS to fund all or part of the personal equity that SBA lenders typically require.
Key Benefits of ROBS
Debt-Free Capital
No loan payments or interest on the portion of capital raised through a properly structured ROBS.
Tax-Deferred & Penalty-Free
When structured correctly, the rollover is not treated as a taxable distribution and avoids early-withdrawal penalties.
Faster Access to Equity
ROBS transactions are often completed in two to three weeks, helping you meet SBA equity requirements on a practical timeline.
Flexible Use of Funds
Can be applied to the franchise fee, equipment, working capital, a salary, or the equity injection required by an SBA lender.
How the ROBS Process Works
Form a C-Corporation
A new C-Corporation is established. Only C-Corporations can issue the type of stock (qualified employer securities) that a retirement plan may purchase under the ROBS structure.
Establish a Qualified Retirement Plan
The new C-Corporation adopts a qualified retirement plan (typically a 401(k) or similar plan designed for this purpose).
Roll Over Eligible Retirement Funds
Funds from your existing 401(k), traditional IRA, or other eligible pre-tax account are rolled into the new plan through a trustee-to-trustee transfer. When handled correctly, this is not treated as a taxable distribution.
Retirement Plan Purchases Company Stock
The new plan uses the rolled-over funds to purchase stock in the C-Corporation at fair market value. The corporation now has cash available to fund the franchise investment, equity requirement, or other startup costs.
Retirement Assets Can Keep Growing
ROBS moves capital from an existing account into the new business, but it is also a wealth-building vehicle. As you take a salary from the company, you can contribute a portion of that salary into the new 401(k), just as you would as an employee of another firm. Specialist Franchise Funding Brokers handle corporate formation, plan design, compliance, and ongoing administration so the structure stays IRS-compliant.
Cash and Personal Savings
Many owners start with personal savings or help from family and friends because it avoids interest and monthly debt service. Those dollars are still post-tax money, and most franchise investments exceed what is sitting in a checking or savings account. Using every liquid dollar for the opening also leaves less room for living expenses and reserves.
Personal cash is often best used as part of a mix—covering a portion of equity, professional fees, or a working-capital cushion—rather than as the only source of funding. Tax treatment on a later sale of the business is another reason to talk through the structure with a qualified advisor before committing savings.
The Value of Combining ROBS + an SBA Loan
Pairing ROBS with an SBA 7(a) loan is a practical strategy for many candidates who want to preserve personal cash while still accessing the favorable terms of an SBA-backed loan.
SBA lenders almost always require a personal equity (or “injection”) contribution. Meeting that requirement from savings alone can be a hurdle. ROBS allows you to use retirement funds—structured properly so the transfer is not treated as a taxable distribution—to satisfy some or all of that equity requirement. The SBA loan then finances the remaining investment: equipment, build-out, inventory, working capital, and other approved uses.
Lower Out-of-Pocket Cash
ROBS can cover the equity portion so you keep more of your liquid savings available for living expenses or reserves.
Access to SBA Terms
You still benefit from the longer repayment periods, competitive rates, and structure of an SBA 7(a) loan for the majority of the funding.
Debt-Free Equity Component
The capital raised through ROBS does not carry monthly loan payments or interest, improving early cash flow.
Aligned with Lender Expectations
Showing a solid equity injection (funded via ROBS) strengthens the overall package and supports underwriting.
How It Fits Together
During discovery, our Director of Finance and specialized Franchise Funding Brokers can walk through whether a pure SBA path, a pure ROBS path, or the ROBS + SBA combination best matches your retirement accounts, cash position, and timeline. Conventional credit, a securities-backed line, or equipment leasing can still fill specific gaps. The combination is a flexible tool—not a requirement for every candidate.
First-Time Business Owners
Lenders are often more cautious when an applicant has no prior ownership track record. Franchises can offset that concern when the candidate has relevant operating or industry experience and the brand is already familiar to the lender. Mobility Plus’s SBA directory listing (S4390) helps on that second point.
Practical approaches for first-time owners include: pairing with lenders that already understand the concept; using ROBS for a debt-free equity injection and early salary; combining ROBS with SBA to improve approval odds; and planning working capital realistically instead of funding only to opening day.
Multi-Unit Funding Considerations
How you fund the first location affects what you can borrow for the second and third. If you plan to grow, treat the first unit as the foundation of a longer capital plan—not a one-off loan.
Preserve Liquidity Early
Use the smallest injection the first lender will accept and borrow what you reasonably qualify for. Holding cash makes the next location easier to fund.
Stay on Projection
Lenders look at whether unit one hit its plan before they finance unit two. Realistic forecasts matter as much as the loan itself.
Expect a Larger Check on Unit Two
If the first location is not yet consistently cash-flow positive, you should expect a higher personal injection on the next deal.
Explain the Timing
If you expand before the first unit is profitable, be ready to show unit economics and how a second location improves efficiency and debt coverage.
Questions Lenders Ask Before Unit Two
Are you on target versus original projections? Have you reached and held cash-flow positive for about six months? If both answers are yes, some expansion loans may allow an equity injection as low as about 10% into the new location. Combined cash flow from existing and new locations still has to cover debt service on the total debt.
Common Questions About Franchise Funding
Can I use ROBS for the SBA equity requirement?
Yes. Many candidates use ROBS specifically to fund all or part of the personal equity injection that SBA lenders typically require. This can reduce the amount of liquid cash you need to contribute from savings or other sources.
When does the full loan packaging start?
Significant document work and full loan packaging begin after you have been awarded a franchise and have paid the franchise fee. That fee counts toward your required personal investment. Prequalification happens earlier, during discovery.
Does the SBA Franchise Directory guarantee approval?
No. Listing (Identifier Code S4390) means the brand has been reviewed and found eligible for SBA financial assistance. It is not an endorsement and does not guarantee that any individual applicant will be approved. Lenders make decisions based on the applicant’s creditworthiness, experience, and other underwriting factors.
How long does an SBA 7(a) franchise loan usually take?
Most take 60–90 days from a complete formal application (after franchise award) to funding. Preferred Lenders can sometimes move faster when the package is complete and the applicant’s profile is strong.
Is ROBS right for everyone?
ROBS is a specialized structure that must be set up correctly to remain compliant with IRS rules. It is not suitable for every candidate or every retirement account situation. Our team and specialized funding brokers can help you evaluate whether it fits your circumstances.
What if I have an investment portfolio but do not want to sell it?
A securities-backed line of credit lets you borrow against eligible holdings without selling them, so you can keep your long-term allocation and avoid realizing capital gains. Market declines can reduce borrowing capacity or trigger a call.
Ready to Explore Your Financing Options?
Whether you are considering an SBA 7(a) loan, ROBS, a combination of both, or another mix of credit and equity, discovery is the best place to start the conversation with our team and Director of Finance.