Glossary · The loan itself
LIBOR-indexed loan
In short
A loan whose interest rate adjusts based on the London Interbank Offered Rate (LIBOR). LIBOR has been phased out, so existing loans were converted to alternative reference rates.
What it means in a deal
While new loans no longer use LIBOR, you might encounter an existing business loan tied to it if you're refinancing or assuming debt. Your lender will have transitioned any LIBOR-indexed loan to a SOFR-based rate or another benchmark, as LIBOR ceased publication. Understand the new rate.
Related terms
Common questions about LIBOR-indexed loan
- How should a lender handle the transition of an existing variable-rate 7(a) loan from LIBOR to an alternative base rate?
- Are SBA 7(a) loans only for businesses unable to get traditional bank loans?
- What exactly is an SBA 7(a) loan, and who offers these loans?
- How do SBA 7(a) loan interest rates compare to standard commercial loans?
- What makes an SBA 7(a) loan 'government-backed' compared to other loans?
- Does the SBA check for past defaults on federal debts, like student loans or prior SBA loans?
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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