[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR32.304-1]

[Page 637]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 32_CONTRACT FINANCING--Table of Contents
 
           Subpart 32.3_Loan Guarantees for Defense Production
 
Sec.  32.304-1  Application for guarantee.

    (a) A contractor, subcontractor, or supplier that needs operating 
funds to 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 Federal Reserve Bank of its 
district for the guarantee. Application forms and guidance are available 
at all Federal Reserve Banks.
    (b) The Federal Reserve Bank will promptly send a copy of the 
application, including a list of the relevant defense contracts held by 
the contractor, to the Federal Reserve Board. The Board will transmit 
the application and the list of contracts to the interested guaranteeing 
agency, so that the agency can determine the eligibility of the 
contractor.
    (c) To expedite the process, the Federal Reserve Bank may, pursuant 
to instructions of a guaranteeing agency, submit lists of the defense 
contracts to the interested contracting officers.
    (d) While eligibility is being determined, the Federal Reserve Bank 
will make any necessary credit investigations to supplement the 
information furnished by the applicant financing institution in order 
to--
    (1) Expedite necessary defense financing; and
    (2) Protect the Government against monetary loss.
    (e) The Federal Reserve Bank will send its report and recommendation 
to the Federal Reserve Board. The Board will transmit them to the 
interested guaranteeing agency.