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48 CFR · Federal Acquisition Regulation and Defense supplement

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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.

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18 sections with “guaranteed loan”

  • FAR 32.304-7 Contract surety bonds and loan guarantees.
    (a) Contract surety bonds are incompatible with the Government's interests under guaranteed loans, unless the interests of the surety are subordinated to the guaranteed loan. (b) If a substantial share of the contractor's defense contracts…
  • FAR 32.305 Loan guarantees for terminated contracts.
    (a) The purpose of guaranteed loans; i.e., to provide for financing based on the borrower's recoverable investment in defense production contracts, may also apply to contracts that have been terminated (partially or totally) for the conveni…
  • FAR 32.304-8 Other borrowing.
    (a) Because of the limitations under guaranteed loans, some contractors seek to supplement the loan by other borrowing (outside the guarantee) from the financing institution or other sources. It has been recognized in practice that, while p…
  • FAR 32.303 General.
    … available. (c) Loan guarantees are not issued to other agencies of the Government. (d) Guaranteed loans are essentially the same as conventional loans made by private financial institutions, except that the guaranteeing agency is obligat…
  • FAR 32.301 Definitions.
    …orrower 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…
  • FAR 32.304-5 Assignment of claims under contracts.
    (a) The agency shall generally require a contractor that is provided a guaranteed loan to execute an assignment of claims under defense production contracts (including any contracts entered into during the term of the guaranteed loan that a…
  • FAR 32.113 Customary contract financing.
    …ccordance with subpart 32.4. (g) Financing of contracts for supplies or services through guaranteed loans in accordance with subpart 32.3. (h) Financing of contracts for supplies or services through any appropriate combination of advance …
  • FAR 32.403 Applicability.
    … if— (1) Financing institutions will not assume a reasonable portion of the risk under a guaranteed loan; (2) Loans with reasonable interest rates or finance charges are not available to the contractor; or (3) Contracts involve operation…
  • FAR 32.105 Uses of contract financing.
    …) Facilities expansion of a minor or incidental nature, if a relatively small part of the guaranteed loan is used for the expansion and the contractor's repayment would not be delayed or impaired; or (2) Other instances of facilities expan…
  • FAR 32.304-3 Asset formula.
    (a) Under guaranteed loans made primarily for working capital purposes, the agency shall normally limit the guarantee, by use of an asset formula, to an amount that does not exceed a specified percentage (90 percent or less) of the contract…
  • FAR 32.304-4 Guarantee amount and maturity.
    …d. (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 Fed…
  • FAR 32.304-6 Other collateral security.
    The following are examples of other forms of security that, although seldom invoked under guaranteed loans, may be required when considered necessary for protection of the Government interest: (a) Mortgages on fixed assets. (b) Liens agai…
  • FAR 32.501-2 Unusual progress payments.
    …r fully documents an actual need to supplement any private financing available, including guaranteed loans; and (3) The contractor's request is approved by the head of the contracting activity or a designee. In addition, see 32.502-2. (b)…
  • FAR 42.502 Selecting contracts for postaward orientation.
    … and (l) Complex financing arrangements, such as progress payments, advance payments, or guaranteed loans.
  • FAR 49.402-3 Procedure for default.
    …(6) The effect of a termination for default on the ability of the contractor to liquidate guaranteed loans, progress payments, or advance payments. (7) Any other pertinent facts and circumstances. (g) If, after compliance with the procedu…
  • DFARS 232.302 Authority.
    (a) The use of guaranteed loans as a contract financing mechanism requires the availability of certain congressional authority. The DoD has not requested such authority in recent years, and none is now available.
  • FAR 32.408 Application for advance payments.
    … used under agency procedures. (5) A description of the contractor's efforts to obtain unguaranteed private financing or a V-loan (see 32.301) under eligible contracts. This requirement is not applicable to the contract types described in …
  • FAR 50.103-4 Facts and evidence.
    …tractor and its affiliates, stockholders, and partners, including loans to the contractor guaranteed by any stockholder or partner. (14) A list of all salaries, bonuses, and other compensation paid or furnished to the principal officers or…

FAR (chapter 1)

DFARS (chapter 2, Defense)

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Rule changes in progress: FAR, DFARS. Terms: glossary.