I think you might be misunderstanding how liabilities and assets work. If your business is valued at 1 million already, it means your assets and liabilities net

I think you might be misunderstanding how liabilities and assets work. If your business is valued at 1 million already, it means your assets and liabilities net out to $1M. Taking out an additional loan for $1M just gives you $1M in assets AND $1M in liabilities (assuming this is before interest kicks in)... so your business valuation is actually neutral. Now, if you squander the $1M and don't generate more than $1M+interest, your business will lose value... but you would have to lose $2M to then increase your liabilities to wipe out your original valuation