It allowed Missouri and then Maine (which also applied for statehood) to become states. A lot of states were on the edge on wether to admit or not allow a state that allows slavery into the states. In the end - both were admitted and became states. However, Missouri was left as a slave state and Maine was set as a free state.
Loyalists were American colonists who stayed loyal to the Crown during the American Revolutionary War, often called Tories, Royalists, or King's Men at the time. They were opposed by the "Patriots", who supported the revolution, and called them "persons inimical to the liberties of America".
Conflict: American Revolutionary War