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FAR and DFARS › FAR Part 32: Contract Financing › Subpart 32.3

FAR 32.301 Definitions.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section defines key terms used in the guaranteed loan program under FAR Subpart 32.3. It explains who is a borrower, what a guaranteed loan (V loan) is, and which agencies can guarantee loans. For contractors, it clarifies eligibility and the nature of the financial arrangement if they participate in this program.

Applies to: Contractors, subcontractors, and suppliers involved in guaranteed loans under FAR Subpart 32.3

Key terms: Borrower · Federal Reserve Board · Guaranteed loan or V loan · Guaranteeing agency

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As used in this subpart—

Borrower means a contractor, subcontractor (at any tier), or other supplier who receives a guaranteed loan.

Federal Reserve Board means the Board of Governors of the Federal Reserve System.

Guaranteed loan or V loan means a loan, revolving credit fund, or other financial arrangement made pursuant to Regulation V of the Federal Reserve Board, under which the guaranteeing agency is obligated, on demand of the lender, to purchase a stated percentage of the loan and to share any losses in the amount of the guaranteed percentage.

Guaranteeing agency means any agency that the President has authorized to guarantee loans, through Federal Reserve Banks, for expediting national defense production.

Sections that refer to it

  • 32.408 Application for advance payments.

← 32.300 Scope of subpart. · 32.302 Authority. →

Rule changes for FAR Part 32

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 32.301 Definitions · SpendQuery