Glossary · The loan itself
In short
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.
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.
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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