Government Contract Lending

Government Contract Lending Services

Assignment of Claims Act Compliance

• Structuring assignments of federal receivables
• Drafting compliant notice and acknowledgment documentation
• Coordinating with contracting officers and agencies
• Ensuring enforceability of assigned payment rights

Receivables & Working Capital Financing

• Structuring facilities secured by government accounts receivable
• Borrowing base design specific to federal payment cycles
• Compliance with FAR and agency regulations
• Mitigating payment delay risk

Interplay with Federal Procurement Regulations

• Review of contract clauses affecting assignment rights
• Anti-assignment and consent analysis
• Novation and contract transfer issues
• Small business and set-aside compliance considerations

Security Interests & Collateral Protection

• UCC filing strategy for receivables and related assets
• Priority analysis and intercreditor agreements
• Cross-collateralization with non-government assets
• Risk mitigation for termination-for-convenience exposure

Workout & Enforcement Strategy

• Default analysis in government receivables contexts
• Enforcement rights involving federal contract payments
• Coordination with bankruptcy and restructuring proceedings
• Preservation of secured creditor priority

We structure lending transactions to align with both commercial law principles and federal procurement requirements — reducing uncertainty and protecting enforcement rights.

Who We Represent

Our Government Contract Lending practice represents:

• Regional and community banks
• Specialty government contract lenders
• Private credit funds
• Asset-based lenders
• Factoring companies
• Prime contractors and subcontractors
• Small and mid-sized government contractors
• Construction and infrastructure contractors performing federal work

By understanding both sides of the lending and contracting relationship, we anticipate compliance risks and negotiation leverage points.

Industries Served

We advise clients financing government-related operations in industries including:

• Defense and federal procurement
• Technology and IT services
• Healthcare services and medical contractors
• Construction and infrastructure
• Professional services and consulting
• Logistics and supply chain operations
• Engineering and specialty services

Our familiarity with federal contracting structures strengthens lending documentation and compliance frameworks.

Government Contract Lending FAQs

What is the Assignment of Claims Act?

The Assignment of Claims Act allows government contractors to assign payment rights under federal contracts to approved lenders, provided statutory requirements are met. Proper compliance ensures that assigned receivables are enforceable and payable directly to the lender.

Can government contract receivables be used as loan collateral?

Yes, but only if the assignment complies with federal law and agency-specific requirements. Proper notice, acknowledgment, and documentation are critical to protect lender rights.

Are government contracts subject to anti-assignment clauses?

Many federal contracts include anti-assignment provisions, but statutory exceptions exist under the Assignment of Claims Act. Legal counsel ensures assignments are structured within allowable frameworks.

What risks are unique to government contract lending?

Risks include payment delays, termination for convenience, contract modifications, regulatory compliance issues, and agency-specific limitations. Proper structuring and documentation mitigate these risks and preserve lender priority.