Overview
This section establishes the legal framework for defense production loan guarantees, identifying the Federal Reserve Banks as fiscal agents and listing the specific federal agencies authorized to act as guarantors.
Key Rules
- Legal Basis: Authority is derived from Section 301 of the Defense Production Act of 1950 and Executive Order 10480.
- Fiscal Agents: Federal Reserve Banks are authorized to act on behalf of the government to facilitate the making of loan guarantees.
- Designated Guaranteeing Agencies: Only the following agencies possess the authority to guarantee loans under this part:
- Department of Defense
- Department of Energy
- Department of Commerce
- Department of the Interior
- Department of Agriculture
- General Services Administration
- National Aeronautics and Space Administration
Practical Implications
- Contractors performing essential defense-related work can access specialized financing by leveraging the guaranteeing power of these specific agencies.
- The involvement of Federal Reserve Banks ensures that the administrative processing of these guarantees is handled through established financial regulatory channels rather than solely within the contracting agency.