Bespalov-Talanov theory on small-scale self-focusing is extended to include medium loss for a divergent beam. Gain spectrum of small-scale perturbation is presented in integral form, and based on the derived equations we find that the cutoff spatial frequency for perturbation keeps a constant value. The larger the medium loss is, the smaller the fastest growing frequency and the maximum gain of perturbation with defined propagation distance are. For a given medium loss the maximum gain of perturbation becomes larger, while the fastest growing frequency becomes smaller as the propagation distance becomes longer. Furthermore, physical explanations for the appearance of these features are given.