{"ok":true,"canonical_url":"https://dealroom.so/glossary/loan-to-value-ratio","api_url":"https://dealroom.so/api/public/glossary/loan-to-value-ratio","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-ratio","term":"Loan-to-value ratio","aka":"LTV","group":"The loan itself","definition":"How much the loan covers compared to the value of the assets being purchased or used as collateral. Buyers care because a lower ratio means more equity injection is needed, but also stronger loan approval prospects.","what_it_means":"While not a direct SBA eligibility factor for business acquisitions, lenders use LTV to assess risk, especially when real estate or equipment is primary collateral. For a business acquisition, the SBA focuses more on cash flow and equity injection. You'll see this concept come up if you're financing commercial real estate as part of the deal.","url":"https://dealroom.so/glossary/loan-to-value-ratio","official_sources":[],"related":[{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"question":"What is the debt-to-worth ratio requirement for a $0-down partner buyout?","url":"https://dealroom.so/sba-7a/questions/what-is-the-debt-to-worth-ratio-requirement-for-a-0-down-partner-buyout"},{"question":"What if my personal debt-to-income ratio is high, even with a good credit score?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-debt-to-income-ratio-is-high-even-with-a-good-credit-score"},{"question":"What if I have a high debt-to-income ratio personally, even with a good credit score?","url":"https://dealroom.so/sba-7a/questions/what-if-i-have-a-high-debt-to-income-ratio-personally-even-with-a-good-credit-score"},{"question":"Does the SBA require a specific debt service coverage ratio (DSCR) for approval?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-require-a-specific-debt-service-coverage-ratio-dscr-for-approval"},{"question":"When is a debt service coverage ratio waiver or exception possible for an acquisition?","url":"https://dealroom.so/for-lenders/questions/when-is-a-debt-service-coverage-ratio-waiver-or-exception-possible-for-an-acquisition"},{"question":"How does a seller note on full standby affect the debt service coverage ratio calculation?","url":"https://dealroom.so/sba-7a/questions/how-does-a-seller-note-on-full-standby-affect-the-debt-service-coverage-ratio-calculation"}]},"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 ratio","url":"https://dealroom.so/glossary/loan-to-value-ratio","source_type":"DealRoom Data"}}