{"ok":true,"canonical_url":"https://dealroom.so/glossary/loan-to-value","api_url":"https://dealroom.so/api/public/glossary/loan-to-value","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"loan-to-value","term":"Loan-to-Value","aka":"LTV","group":"The loan itself","definition":"A ratio comparing the loan amount to the value of an asset, typically real estate. While less common for business loans, it can apply if the deal includes significant owner-occupied commercial real estate.","what_it_means":"For an SBA 7(a) loan, LTV primarily matters if you're acquiring commercial real estate as part of the business. Lenders use it to assess risk; a lower LTV means more equity in the asset. Understand how the real estate appraisal impacts the loan structure and your required down payment.","url":"https://dealroom.so/glossary/loan-to-value","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"},{"slug":"owner-occupied-commercial-real-estate","term":"Owner-occupied commercial real estate","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"}],"related_questions":[{"question":"Can the fair market value of raw materials I contribute to the acquired business count towards equity?","url":"https://dealroom.so/sba-7a/questions/can-the-fair-market-value-of-raw-materials-i-contribute-to-the-acquired-business-count-tow"},{"question":"How is the value of inventory I own and contribute to the acquired business counted towards equity injection?","url":"https://dealroom.so/sba-7a/questions/how-is-the-value-of-inventory-i-own-and-contribute-to-the-acquired-business-counted-toward"},{"question":"Can the value of my existing personal vehicle, if contributed to the business, count towards the equity injection?","url":"https://dealroom.so/sba-7a/questions/can-the-value-of-my-existing-personal-vehicle-if-contributed-to-the-business-count-towards"},{"question":"Can the value of equipment I already own and contribute to the acquired business count towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-the-value-of-equipment-i-already-own-and-contribute-to-the-acquired-business-count-tow"},{"question":"What is the maximum percentage of a business acquisition's value that can be attributed to goodwill for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-maximum-percentage-of-a-business-acquisition-s-value-that-can-be-attributed-to"},{"question":"Can the fair market value of equipment I already own and contribute to the acquired business count towards my equity?","url":"https://dealroom.so/sba-7a/questions/can-the-fair-market-value-of-equipment-i-already-own-and-contribute-to-the-acquired-busine"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Loan-to-Value","url":"https://dealroom.so/glossary/loan-to-value","source_type":"DealRoom Data"}}