News

The Defense Department’s Office of Strategic Capital is now accepting applications for flexible direct loans to build, expand and/or modernize “critical technologies” facilities (Federal Register).

• It’s also seeking input from companies and trade associations on the Defense Department’s loan program, via a Request for Information open through Oct. 22 (Federal Register).

What’s going on: The OSC’s credit program, launched Sept. 30, aims “to attract and scale private capital in industries and technologies that are critical to America’s national and economic security,” according to the Defense Department. This is part one of the application process.

• The financing is geared toward manufacturers that must spend significantly on industrial or specialty equipment to create new assembly lines in existing facilities.
• The money is also intended to help them cover “soft” expenses, such as factory preparation and installation, associated with critical technology projects.

Why it’s important: “The funding from this program could benefit manufacturers of all sizes that are working to expand their businesses and product lines in critical areas of the economy,” said NAM Director of Energy and Natural Resources Policy Mike Davin.

• The OSC loans offer flexible terms, a U.S. Treasury-comparable interest rate, long repayment periods and deferred payments.

Who’s eligible: Manufacturers within the 31 “Covered Technology Categories”— which include advanced manufacturing, cybersecurity, battery storage and spacecraft—are encouraged to apply.

• There is no company-size or employee-number threshold or limit, and manufacturers with existing federal grants are eligible.