Place the sofa against the longest wall in the room
Position the loveseat (which is smaller than the sofa) against a wall next to the sofa, creating an L shape. There should be a small amount of space left open in the corner between the two pieces of furniture.
Utilize the empty corner space to house an end table or standing lamp. This gives you a place to put drinks, magazines or an additional source of mood lighting.
Minimize the other furniture in the room. Small spaces quickly become overwhelmed when too many pieces are placed there. Limit yourself to placing seating, lamps or end tables against two walls, and leave the center of the room open and free of items like coffee tables and ottomans. The TV (or whatever the room's focal point is) can be placed in the corner opposite from the corner where the couch and loveseat are situated.