Glossary · The loan itself
In short
LIBOR was a benchmark interest rate used globally for various financial products, including some variable-rate loans. It has been phased out and replaced by other reference rates.
While historically used for some variable-rate SBA loans, LIBOR has been discontinued. New SBA 7(a) loans with variable rates now typically use WSJ Prime or Term SOFR as their base rate. If you encounter an older loan still referencing LIBOR, be aware that it has transitioned to an alternative rate as mandated by regulators.
Defined by DealRoom.so 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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