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

FAR 32.304-4 Guarantee amount and maturity.

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 explains when a guaranteeing agency may change the amount or maturity date of a loan guarantee for defense production contracts. It allows adjustments when the contractor takes on additional defense production contracts, either before the guarantee is authorized or during the loan term. This matters because it gives contractors a path to expand guaranteed financing as their defense work grows.

Applies to: Contractors with guaranteed loans for defense production contracts and the guaranteeing agency

What it requires

  • Submit pertinent information and Federal Reserve Bank reports to the guaranteeing agency under the original guarantee application procedures when adjusting an existing guarantee agreement for new defense production contracts
  • Normally obtain a new certificate of eligibility

Key terms: guarantee amount · maturity date · defense production contracts · guaranteed loan · certificate of eligibility

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

The text

The agency may change the guarantee amount or maturity date, within the limitations at 32.304-3, as follows:

(a) If the contractor enters into additional defense production contracts after the application for, but before authorization of, a guarantee, the agency may adjust the loan guarantee amount or maturity date to meet any significant increase in financing need.

(b) If the contractor enters into defense production contracts during the term of the guaranteed loan, the parties may adjust the existing guarantee agreement to provide for financing the new contracts. Pertinent information and the Federal Reserve Bank reports will be submitted to the guaranteeing agency under the procedures for the original guarantee application, described in 32.304-1. Normally, a new certificate of eligibility is required.

Sections it refers to

← 32.304-3 Asset formula. · 32.304-5 Assignment of claims under contracts. →

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 32.304-4 Guarantee amount and maturity · SpendQuery