Glossary · The loan itself
In short
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.
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.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day