Are there any reputable lenders who offer term sheets without tax returns?

March 20, 2026

by a searcher from Northwestern University in Chicago, IL, USA

Hi everyone, I am the favored buyer for a seller who does not want to share his tax returns until after an LOI, but he wants to see lender term sheets before signing the LOI. I am not sure how to reconcile this, as all the lenders I work with want tax returns before issuing a term sheet. Does anyone know of any reputable lenders who are willing to offer a term sheet without seeing tax returns? The company had ~800k in SDE in 2025 and is selling for $2.4M in an industry I have been targeting for almost a year. I have an operations background and have family connections in the industry that should help me grow revenue at >10% a year once I get my hands around the operations side. But I don't know how to get through this snag to convince the seller of my ability to get an SBA loan.

Reply by an intermediary
from The University of Chicago in Chicago, IL, USA

For LMM businesses, no TR is common until after the LOI. In my 35+ years, I have never shared TR with buyers. Not only that I do not ask seller to share TR with me until after the LOI. There are so many ways to validate financials. And financials have 10x more info than TR. However, if you are buying a main-street business with a lot of cash incoming/outgoing transactions, it is proper to request TR before LOI, or alternatively, gain seller confidence simply by asking the seller or the broker if numbers match with TR. Convert such situation to your advantage. Keep in mind, banks have to see TR before funding approval. That is their fiduciary responsibility. But bank comes very late in the game.

Reply by a lender
from University of Iowa in Chicago, IL, USA

It's not best practice if you want the term sheet to hold water, candidly. I'm an SBA lender, also in Chicago. Happy to talk through this with you. Let me know when you have some time. redacted

+3 more replies.

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