Can SBA 7(a) lenders underwrite off TTM financials instead of the most recent tax return? Business is growing fast and trying to close sooner rather than later.
I'm working on an SBA 7(a) acquisition of a small multi-location retail franchise business in the $4-$5mm range. Deal is fully negotiated (LOI signed), but the financing timeline is currently tied to waiting for the seller's 2026 tax return to be filed, pushing closing into Q1 2027.
The issue: the business has grown quickly over the past 12-18 months, and the most recent full-year tax return (2025) understates current performance pretty significantly — trailing twelve month (TTM) numbers are well ahead of what 2025 alone shows. If a lender underwrites strictly off the 2025 return, debt service coverage looks a lot weaker than the business's actual current run-rate would support.
I'd like to explore closing this year instead of waiting until the 2026 return is filed next spring. Questions for anyone who's been through this:
- Do SBA 7(a) lenders ever underwrite primarily off TTM/interim financials (CPA-reviewed or CPA-compiled) rather than requiring the most recent filed tax return, especially for a fast-growing acquisition target?
- Is this a "some lenders will, some won't" situation, or is it more of a hard SBA SOP requirement across the board?
- If it's lender-dependent, would appreciate recommendations for SBA lenders/loan officers who are known for being flexible on this — particularly ones experienced with acquisition financing (not just startup loans) and multi-unit franchise deals.
Happy to share more deal specifics in the comments if it's helpful for context. Thanks in advance for any pointers.