Investment Strategy for the Office of Strategic Capital, Fiscal Year 2025 : Department of Defense , January 2 , 2025
Investment Strategy for the Office of Strategic Capital, Fiscal Year 2025 : Department of Defense , January 2 , 2025
From the report: "The Secretary of Defense founded the Office of Strategic Capital (OSC) in December 2022 to attract and scale private capital into technologies critical to United States national security. To execute this mission, OSC has launched a series of financial products to invest in areas important to national security.
OSC’s inaugural offering, launched in the Autumn of 2023, was the Small Business Investment Company Critical Technology Initiative (SBICCT Initiative), a partnership with the Small Business Administration (SBA) to extend credit to funds investing within the Department’s fourteen Critical Technology Areas. The inaugural FY2024 Investment Strategy provided the framework to identify industry segments of particular interest for the initiative.
In December 2023, Congress formally authorized OSC, expanded the office’s mission, and authorized OSC to provide loans, loan guarantees, and technical assistance to companies, funds, and other entities within 31 “Covered Technology Categories” listed in statute. Following passage of the Further Consolidated Appropriations Act, 2024, OSC has launched its second financial product less than six months after receiving appropriations – a direct lending program to fund the construction, expansion, or modernization of commercial equipment in the United States.
The FY2025 Investment Strategy identifies and prioritizes investment areas for the OSC’s newly authorized credit-based financial products. Investments will be prioritized based on their national security impacts, defined as those that provide the United States and/or its allies and partners with robust competitive advantage relative to strategic competitors."
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