The Defense Department’s Office of Strategic Capital (OSC) has released its FY2025 investment plan, outlining priorities for nearly $1 billion of credit-based financial assistance to support development of critical technologies, assets, and their supply chains.
OSC’s stated mission is to develop and implement strategies and partnerships to accelerate and scale private investment in critical supply chain technologies needed for national security.
The strategy also outlines key areas of strategic competition, establishes a framework to optimize capital allocation, and highlights industry segments where OSC investments will be focused.
Some technology areas highlighted in the strategy include autonomous mobile robots, cybersecurity, data fabric, microelectronics manufacturing equipment, sensor hardware, spacecraft, Open RAN, edge computing, among others.
“The OSC FY25 Investment Strategy provides an overarching framework as the office deploys its federal credit tools to build enduring advantages for our nation,” Under Secretary of Defense for Research and Engineering, Heidi Shyu, said in a statement. “With the Investment Strategy as a guide, OSC investments will help reduce vulnerabilities to economic chokepoints, support the production of key industrial capabilities, and lead the development of next generation critical technologies.”
Concurrent with the release of the FY2025 Investment Strategy, OSC is opening the two-part loan application window for its first credit product, which will focus on dispersing nearly $1 billion for equipment finance.
On Sept. 30, 2024, OSC launched a Notice of Funding Availability for equipment finance, offering $984 million in direct loans to companies within the critical technologies value chain that have capital investment needs.
Loans will be from $10 million to $150 million and will finance the “construction, expansion, or modernization of commercial equipment in the United States.”
Part one of the application window for equipment finance loans closes on Feb. 3.
