After decades of serving as one of the world’s most popular benchmark interest rates, LIBOR will soon be unavailable. LIBOR has been used frequently in a wide range of financial products, such as business loans and adjustable-rate mortgages. However, a world-wide transition is underway to replace it.
LIBOR will be replaced with rate alternatives, such as the Secured Overnight Financing Rate (SOFR). Regulators have made clear LIBOR should not be used in new contracts after 2021. The transition may also impact some existing contracts that use LIBOR as a benchmark rate.
U.S. Bank has planned extensively for this transition in recent years, and we are well-positioned to facilitate a smooth transition for our customers. We offer a variety of rate alternatives and on April 1, 2021, we became operationally ready to offer SOFR for most commercial loans.
One of our top priorities is keeping you informed. We encourage you to review the information on this page, as well as the external resources provided. If you would like more information, contact your primary U.S. Bank point of contact or visit our customer service page to contact us by the method most convenient for you. We also encourage you to seek independent professional advice on any questions or concerns you may have on this transition.