BORSA As An Alternative To An SBA Loan (Houston, TX)

What is a BORSA?

BORSA stands for Business Owner's Retirement Savings Account Plan.  BORSA is a tool which allows you to fund the purchase of a franchise, business start-up, or business property using your holdings in a 401(a) pension, profit sharing 401(k), 403(b), 457, IRA rollover or Roth IRA. Through the utilization of a BORSA these purchases can be accomplished without distributions, taxes, penalties, or the use of retirement plan loans.

Greetings! From Suzy Granger

The SBA requires that an owner of 20% or more of the borrower must guarantee the loan unless there are extenuating circumstances that would otherwise prohibit the guarantee. Retirement plans (BORSA) are prohibited from guaranteeing debt and as such there is a process in place to waive the guarantee of the retirement plan and still provide a SBA loan. DRDA, P.C. will provide a letter from our ERISA attorney addressing the issue and the technical basis why the retirement plan cannot guarantee the loan. With our letter, the lender then makes an application for waiver of guarantee to the SBA. If the waiver application is proper and complete the lender will receive their Guaranty Waiver from the SBA within 7-10 days.

Testimonial:

"A banker introduced me to the BORSA plan about a year ago. Had she not brought it up we would not have been able to purchase our printing facility through traditional means, and frankly, I don't know if I would have wanted to wade through the small mountain of forms she called an SBA loan package. The BORSA plan was quick, implemented by very friendly people, and everything happened just the way it was supposed to. I'd do it all over again in a heart- beat."

Phillip Crum
Chief Idea Officer
(214) 213-7445

Click here for the official BORSA website or call 281-954-6023 and talk with Suzy Granger right now!