[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR32.105]

[Page 629]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 32--CONTRACT FINANCING--Table of Contents
 
          Subpart 32.1--Non-Commercial Item Purchase Financing
 
Sec. 32.105  Uses of contract financing.

    (a) Contract financing methods covered in this part are intended to 
be self-liquidating through contract performance. Consequently, agencies 
shall only use the methods for financing of contractor working capital, 
not for the expansion 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 loan is used for the expansion 
and the contractor's repayment would not be delayed or impaired; or
    (2) Other instances of facilities expansion for which contract 
financing is appropriate under agency procedures.
    (b) The limitations in this section do not apply to contracts under 
which facilities are being acquired for Government ownership.