Glossary · The loan itself
LIBOR(London Interbank Offered Rate)
In short
LIBOR was a global benchmark interest rate for variable-rate loans. It has been phased out and replaced by new benchmarks like Term SOFR for SBA loans.
What it means in a deal
While historically common, LIBOR is no longer used for new SBA 7(a) loans. If you're comparing older loan documents or discussing past deals, you might still encounter it. For your acquisition, focus on the current benchmark, which is Term SOFR.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about LIBOR
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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