SBA Lenders – Add-Back Heavy Deal w/ Large Standby Seller Note

We’re under LOI at $3.5M for a service-based business. Proposed structure: ~$1.8M SBA 7(a) upfront 10%+ buyer equity $1.7M subordinated seller note, performance-contingent/forgivable Buyer stepping in full-time The complication: Tax returns support ~ $1.5M valuation. Internal financials reflect materially higher normalized cash flow due to significant discretionary/personal expenses run through the business and lack of sale prep. We’re willing to price off normalized internal earnings, but need a lender comfortable: Underwriting documented add-backs beyond tax-return income Accepting a large standby seller note Structuring seller carry in an SBA-compliant way Questions: How aggressive are you on add-backs vs. tax returns? Is this within your credit box? Happy to share financials via DM.