funding

Funding Plan

As you are aware, there are various ways to fund your franchise, such as an SBA loan (a government-secured small business administration loan), ROBS (Roll-Over for Business Start-up from your pre-tax retirement accounts), or utilizing your personal savings or home equity. One of our Franchise Developer's responsibilities is to ensure that you have a sound financial plan in place, and we have a number of trusted third-party lenders we can introduce. PIRTEK USA will not award franchises to people who may be put in financial peril as a result, and thus your franchise developer will work diligently alongside you designing an optimal funding plan should you be awarded the franchise.

One of the most popular ways to fund a franchise is an SBA Express or 7(a) loan. Below you will find a video of one of our several funding partners explaining the SBA loan programs and the requirements to secure pre-approval. Your Franchise Developer will work alongside you and the SBA lending partner that you choose.

Additionally, you will find instructions on how to fill out the SBA Personal Financial Statement (PFS), which all of our funding partners will require to secure preapproval. There is also a link below to a fillable PDF form for the Personal Financial Statement.

Personal Financial Statement Instructions - SBA Form 413

***Form is a .pdf fillable form and must be filled out on the computer. If you are using an Apple computer/iPhone/iPad, you’ll have to save to Google Docs.***

A Personal Financial Statement (PFS) is needed for:

Each proprietor
General partner
Managing member of a limited liability company (LLC)
Each owner of 20% or more of the equity of the Applicant; and
Any person providing a guaranty on the loan
**Spouse name must be included and he/she must sign/date (even if they are not going to be on the loan)**

**Include the assets and liabilities of the owner’s spouse and any minor children

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SET UP A C CORPORATION

The process begins with establishing a new corporation using the proper legal structure to support the establishment and operation of the company’s qualified retirement plan.
DESIGN A NEW QUALIFIED RETIREMENT PLAN

To avoid early withdrawal penalties and preserve tax-deferred status, a new retirement plan is created for which you’ll move your existing funds. We will customize your plan, taking into account your business needs.
TRANSFER YOUR RETIREMENT FUNDS INTO THE NEW PLAN

If you’re rolling over funds from a 401(k), your plan custodian will work with you to fill out temporary IRA documents. If funds are being rolled from an existing IRA, your plan custodian will initiate the movement of those funds.
USE THE RETIREMENT PLAN’S FUNDS FOR YOUR BUSINESS

The rollover funds can now be invested in the newly formed C Corporation by purchasing stock in the corporation. You have the capital to start, purchase or recapitalize your new small business or franchise.

Use Your Own Cash Savings

If you have already saved the needed start-up capital to fund your business, you are indeed in an enviable spot! This will limit your debt service that you would experience utilizing SBA or other loan programs and it will limit the qualified plan administration fees of a ROBS funded account.

Simply send a current copy of the bank statement or investment account statement of the account you are intending on using to fund the business to your Franchise Developer, so they can show proof of funds to our Executive Committee.

Again, we will not award a franchise to someone who may be put into financial peril as a result, and thus will require proof of funds availability to help protect your financial future.