Defense preparing for new critical tech loan program

The U.S. Department of Defense released requests for information regarding a new loan program for critical technologies that will be launched through the Office of Strategic Capital. The office, launched in 2022, has focused on a Small Business Investment Company-Critical Technologies (SBICCT) license that can provide technical and cybersecurity expertise and resources to funds willing to concentrate their portfolios on certain tech. In the FY 2024 budget, Congress provided the office $49 million to create a pilot loan and guarantee program to support companies developing the same critical technologies. To prepare for the program’s launch, the department released two requests for information—one for financiers and one for all other stakeholders—intended to help identify market challenges and capital needs. One of the RFI’s goals may be to narrow the list of eligible technologies from the 31 listed in the program’s authorization, like the 12 emphasized in the current SBICCT license. Another goal of the RFI may be to decide which federal lending agency to partner with or copy for program delivery, as the office’s investment strategy indicates an interest in an interagency agreement, and multiple questions in the RFI are directed at experiences with other federal programs. Responses to both RFIs are due Oct. 22.