From what I gather, to support loop device at least an ARMv7 instruction set cpu is needed which the esteem has. See Specs here:
LG MS910 Esteem 4G (LG Bryce) Detailed Specs | Technical Datasheet | PDAdb.net
Here is a video on installing ubuntu on android (also read description under video):
Run Ubuntu 12.04 on Android - YouTube
I am no expert on this subject, I got this info from googling, but everything points to this being possible on the esteem. I know there are different methods for doing this. The video above seems to be the easiest.
Wish I could've been more help.