---
kind: "section"
citation: "48 C.F.R. § 32.105"
title: "48"
number: "32.105"
heading: "Uses of contract financing."
url: "https://uscodex.org/cfr/48/32.105"
---

# §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.

## Notes

### Authority

Authority: 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 48 FR 42328, Sept. 19, 1983, unless otherwise noted.