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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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35 sections with “loan guarantee”

  • 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 32.304-7 Contract surety bonds and loan guarantees.
    …) 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 a…
  • FAR 32.306 Loan guarantees for subcontracts.
    If the request for a loan guarantee concerns a subcontractor that is financially weak in comparison with its contractor, the Government's interests may be fostered by the contractor making progress payments to the subcontractor. If so, the …
  • FAR 32.303 General.
    (a) Section 301 of the Defense Production Act authorizes loan guarantees for contract performance or other operations related to national defense, subject to amounts annually authorized by Congress on the maximum obligation of any guarantee…
  • FAR 32.304-4 Guarantee amount and maturity.
    … 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 contr…
  • FAR 32.403 Applicability.
    … financial controls to reduce the Government's financial risk. (f) Contracts for which a loan by a private financial institution is not practicable, whether or not a loan guarantee under this part is issued; for example, if— (1) Financing…
  • FAR 32.301 Definitions.
    …ns 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 fun…
  • FAR 32.304-2 Certificate of eligibility.
    …ce requests it; (2) Another interested agency requests it; or (3) The application for a loan guarantee relates to a contract or subcontract within the cognizance of the contracting officer. (b) The agency shall evaluate the relevant data…
  • 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 32.304-8 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 9.403 Definitions.
    …s are grants, cooperative agreements, scholarships, fellowships, contracts of assistance, loans, loan guarantees, subsidies, insurance, payments for specified use, and donation agreements. See 2 CFR part 180 and agency enacting regulations …
  • FAR 32.105 Uses of contract financing.
    …pansion of contractor-owned facilities or the acquisition of fixed assets. However, under loan guarantees, exceptions may be made for— (1) Facilities expansion of a minor or incidental nature, if a relatively small part of the guaranteed l…
  • FAR 32.106 Order of preference.
    …asonable terms; or (2) From other agencies. (b) Customary contract financing other than loan guarantees and certain advance payments (see 32.113). (c) Loan guarantees. (d) Unusual contract financing (see 32.114). (e) Advance payments (…
  • FAR 32.304-1 Application for guarantee.
    …perform a contract related to national defense may apply to a financing institution for a loan. If the financing institution is willing to extend credit, but considers a Government guarantee necessary, the institution may apply to the Feder…
  • FAR 32.000 Scope of part.
    …g partial payments and progress payments based on percentage or stage of completion; (b) Loan guarantees, advance payments, and progress payments based on costs; (c) Administration of debts to the Government arising out of contracts; (d)…
  • FAR 32.002 Applicability of subparts.
    …all purchases subject to part 32: (1) Sections 32.000 through 32.009. (2) Subpart 32.3, Loan Guarantees for Defense Production. (3) Subpart 32.6, Contract Debts. (4) Subpart 32.7, Contract Funding. (5) Subpart 32.8, Assignment of Claim…
  • FAR 32.102 Description of contract financing methods.
    …al payments for a contract termination proposal; or (4) Performance-based payments. (c) Loan guarantees are made by Federal Reserve banks, on behalf of designated guaranteeing agencies, to enable contractors to obtain financing from priva…
  • FAR 32.302 Authority.
    …n behalf of guaranteeing agencies, as fiscal agents of the United States in the making of loan guarantees for defense production (Section 301, Defense Production Act of 1950 (50 U.S.C. App. 2091)). By Executive Order 10480, August 14, 1953 …
  • FAR 32.502-2 Contract finance office clearance.
    …(1) Whose financial condition is in doubt; (2) Who has had an advance payment request or loan guarantee denied for financial reasons (or approved but withdrawn or lapsed) within the previous 12 months; or (3) Who is named in the consolida…
  • DFARS 232.104 Providing contract financing.
    …etermined that— (1) The use of customary contract financing (see FAR 32.113), other than loan guarantees and advance payments, is in DoD's best interest; and (2) Further justification of its use in individual acquisitions is unnecessary.
  • FAR 32.113 Customary contract financing.
    …ith 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 payments, g…
  • FAR 32.202-4 Security for Government financing.
    …from any prior encumbrances. Prior liens may result from such things as capital equipment loans, installment purchases, working capital loans, various lines of credit, and revolving credit arrangements. (c) Other assets as security. Contra…
  • FAR 2.101 Definitions.
    …he contractor to a bank, trust company, or other financing institution, as security for a loan to the contractor, of its right to be paid by the Government for contract performance. Assisted acquisition means a type of interagency acquisit…
  • FAR 32.300 Scope of subpart.
    This subpart prescribes policies and procedures for designated agencies' guarantees of loans made by private financial institutions to borrowers performing contracts related to national defense (see 30.102).
  • 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 32.304-6 Other collateral security.
    …ng 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 against invento…
  • FAR 32.408 Application for advance payments.
    …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 32.403(a) or (b). (6) Other informa…
  • FAR 32.501-2 Unusual progress payments.
    …uments 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) The excess…
  • FAR 42.502 Selecting contracts for postaward orientation.
    …omplex financing arrangements, such as progress payments, advance payments, or guaranteed loans.
  • FAR 47.502 Policy.
    …antees the convertibility of foreign currencies; or (iv) Acquired with advance of funds, loans, or guaranties made by or on behalf of the United States. (b) Additional policies providing preference for the use of U.S.-flag vessels are con…
  • FAR 47.504 Exceptions.
    …pments covered under 46 U.S.C. Appx 1241-1, such as those generated by Export-Import Bank loans or guarantees; (3) Subcontracts under— (i) Government contracts or agreements for ocean transportation services; or (ii) Construction contrac…
  • FAR 49.402-3 Procedure for default.
    …ect 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 procedures in para…
  • FAR 50.103-4 Facts and evidence.
    …sactions between the contractor 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 t…
  • FAR 52.247-64 Preference for Privately Owned U.S.-Flag Commercial Vessels.
    …rantees the convertibility of foreign currencies; or (4) Acquired with advance of funds, loans, or guaranties made by or on behalf of the United States. (b) The Contractor shall use privately owned U.S.-flag commercial vessels to ship at …
  • 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 (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.