FAR 32.306 Loan guarantees for subcontracts
Section Federal Acquisition Regulation
Facts
- Citation
- FAR 32.306
- Type
- Section
- Text as of
- FAC 2026-01
- Official text
- acquisition.gov
Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this section.
Text
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 agency shall try to arrange for the contractor to provide the progress payments. As a result, the need for the loan guarantee may be reduced or eliminated and the contractor would bear part or all of the risk of loss arising from the selection of the subcontractor.
Quick answers
What is FAR 32.306?
FAR 32.306 is a section of the Federal Acquisition Regulation, titled "Loan guarantees for subcontracts".
Are changes to FAR 32.306 proposed?
No proposed rule from the last 3 years is waiting on a final rule.
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