Glossary · The loan itself
In short
This ratio compares the loan amount to the total project costs. It tells you what percentage of the deal is financed by the loan versus your equity.
Lenders use the loan-to-cost ratio to assess risk. The SBA has specific maximum ratios for different types of transactions, dictating how much equity you must inject. A higher ratio means more leverage and potentially higher risk for the lender. Understand the required equity injection based on this ratio.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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