The U.S. Department of Defense plans to provide up to $984 million in loans to private companies developing critical technologies. Investments could range from $10 million to $150 million, by the Office of Strategic Capital (OSC) announced during the release of its first Notice of Funding Availability (NOFA).
"With this Notice of Funding Availability, OSC establishes itself as a credible lending partner for U.S.-based companies that manufacture and produce critical technology components. This demonstrates that DoD is dedicated to using every tool in our toolbox to secure America's and our military's enduring technological advantage,” Deputy Secretary of Defense Kathleen Hicks said.
The NOFA will fund equipment needs for companies to enhance production across 31 identified technology categories recognized as critical assets in the National Defense Authorization Act for Fiscal Year 2024 (FY24 NDAA).
Moreover, by outlining eligibility criteria and the application process, the NOFA ensures that companies are well-prepared to seek OSC financing.
Commenting on the same, OSC Director Jason Rathje said, "Through these congressional authorities and appropriations, the DoD now has proven financial tools to enable millions of dollars of investment in national security priorities at limited cost to the Department and the taxpayer. OSC's implementation of its congressional mandate will ultimately increase both public and private investment to secure a robust and resilient U.S. industrial base."