Common use of Working Capital Advance Clause in Contracts

Working Capital Advance. If a recipient cannot meet the criteria for advance payments as specified in 2 CFR 200.305 and the CO determines that reimbursement is not feasible because the recipient lacks sufficient working capital, DOE may provide funds as a working capital advance in accordance with 2 CFR 200.305(b)(4). When authorized by the CO, working capital advances to the recipient are intended to cover the recipient’s estimated cash disbursement needs for an initial period of time. The period of time is to be decided by the CO, but should not normally exceed the recipient’s disbursement cycle. Thereafter, payments are made to the recipient for actual cash disbursements.

Working Capital Advance. If a recipient cannot meet the criteria for advance payments as specified in 2 CFR 200.305 and the CO determines that reimbursement is not feasible because the recipient lacks sufficient working capital, DOE may provide funds as a working capital advance in accordance with 2 CFR 200.305(b)(4). When authorized by the CO, working capital advances to the recipient are intended to cover the recipient’s estimated cash disbursement needs for an initial period of time. The period of time is to be decided by the CO, CO but should not normally exceed the recipient’s disbursement cycle. Thereafter, payments are made to the recipient for actual cash disbursements. DOE shall use capital advances to ensure that the recipient complies with cash management policies provided in Section II.D of this chapter.