Office of Strategic Capital
In support of the Department of War, Office of Strategic Capital’s (OSC) mission is to attract and scale private capital to technologies critical to the national and economic security of the United States. To accomplish its mission, OSC uses loans, loan guarantees, and technical assistance – an efficient use of taxpayer dollars – to crowd in investment by aligning government and private sector incentives. The office’s tools take advantage of the power of markets and competition to support DoW needs. OSC’s investments are guided by: (i) control of economic chokepoints; (ii) scaling of key industries, and (iii) commercialization of critical technologies. OSC investments will provide the Department of War advantages in all these competitive arenas, especially by securing critical supply chains and rebuilding the industrial base. Specifically, OSC will: • Develop new financial products, such as direct equipment finance loans for manufacturers, project finance loans to support capital intensive projects, working capital loans for businesses in need of short-term financing, and loan guarantees through private banks. • Provide loans, loan guarantees and technical assistance to businesses, funds, and other entities within the 33 Covered Technology Categories prescribed by Congress. • Identify and prioritize areas for investment through engagements with the Services, Combatant Commands, National Security Council, and other interagency partners. • Create new data tools to map economic networks to determine chokepoints that impact U.S. national and economic security. • Increase private capital investment to enhance the commercialization of DoW and United States Government (USG) science & technology investments.
FY2026 to FY2027 change Funding for CTLP Program is budgeted in PE 0902199D8Z starting in FY 2026.
FY2026 plans — current year Funding for CTLP Program is budgeted in PE 0902199D8Z starting in FY 2026.
FY2025 accomplishments OSC will execute two complementary programs -- both focused on fund-level leverage tools. Led by the Small Business Administration (SBA) and supported by OSC, the Small Business Investment Company Critical Technologies Initiative (SBICCT Initiative) is expected to Green Light approve and/or License 10 additional funds. These funds, over time, would substantially increase investment in small businesses focused on critical technologies, supply chain and component-level technologies and production processes vital to U.S. national and economic security interests. Simultaneously, OSC is launching CTLP Program, which compared to the SBICCT Initiative allows funds to take on additional leverage…
FY2026 to FY2027 change Funding for Credit Program is budgeted in PE 0902199D8Z starting in FY 2026.
FY2026 plans — current year Funding for Credit Program is budgeted in PE 0902199D8Z starting in FY 2026.
FY2025 accomplishments OSC is currently executing on its first direct loan product: equipment finance. The office began accepting applications in January 2025 and received more than 200 loan applications, representing $8.9 billion in financing requests. The office is now conducting credit underwriting, performing national security assessments, and drafting the necessary documentation to finalize loans. OSC expects it will issue its first conditional approval and term sheet, representing an obligation of funds.
FY2026 to FY2027 change Funding for TAP is budgeted in PE 0604679D8Z starting in FY 2026.
FY2026 plans — current year Funding for TAP is budgeted in PE 0604679D8Z starting in FY 2026.
FY2025 accomplishments FY2025 funds continued to fund a Pathfinder program to develop and validate advanced manufacturing methods to meet critical demands for solid rocket motors. OSC awarded two additional contracts to emerging technology companies proposing novel approaches in advanced manufacturing to fill the services’ requirements. Each company will provide the DoD with solid rocket motor engine prototypes and the processes they utilized to manufacture them which will give the DoD the ability to increase domestic production capacity of solid rocket motors. This aligns with OSC’s goal to increase the production capacity across the domestic supply chain.
FY2026 to FY2027 change Funding for GTS is budgeted in PE 0604679D8Z starting in FY 2026.
FY2026 plans — current year Funding for GTS is budgeted in PE 0604679D8Z starting in FY 2026.
FY2025 accomplishments In FY 2025, GTS is developing an international strategic engagement plan for OSC to advance collaboration with other DoD, interagency and international partners in prioritized critical technology sectors and key terrain, aiming to source and develop deal opportunities aligned to OSC’s mission and Combatant Command strategic priorities. Additionally, GTS led a co-investment in a work program supporting a priority Service capability and sourced several deals from an INDOPACOM partner.
FY2026 to FY2027 change Funding for Investment Strategy is budgeted in PE 0604679D8Z starting in FY 2026.
FY2026 plans — current year Funding for Investment Strategy is budgeted in PE 0604679D8Z starting in FY 2026.
FY2025 accomplishments OSC is advancing the FY2025 Investment Strategy analysis by adding additional data sources (government and open source) to the existing data platform; implementing an analytics platform on top of the data set to automate the process of finding economic vulnerabilities; integrating perspectives from Combatant Commands, the private sector, interagency partners, allies, and the Intelligence Community; and providing actionable insights to the investment team regarding key strategic chokepoints.
FY2026 to FY2027 change No additional funding is programmed in FY 2026.
FY2026 plans — current year In FY 2026, OSC will begin placing key DoW personnel in private sector firms as a part of the fellowship.
FY2025 accomplishments OSC, in collaboration with private sector stakeholders, is setting up a program structure aligned with OSC priorities, personnel rhythms, and programmatic needs. This collaborative design phase will be used to formalize program characteristics, secure necessary approvals for a beta implementation, and recruit inaugural participants.
FY2026 to FY2027 change No additional funding is programmed in FY 2026.
FY2026 plans — current year This funding, reflecting the Department's increased focus on the economic dimensions of strategic competition, is being used by OSC, in coordination with the Deputy Secretary, to support analysis and coordination of economic competition activities. Specifically, it will enable the identification of priority targets in the economic domain and the development of potential DoW courses of action to ensure military advantage.
FY2025 accomplishments This funding, reflecting the Department's increased focus on the economic dimensions of strategic competition, is being used by OSC, in coordination with the Deputy Secretary of Defense, to support analysis and coordination of economic competition activities. Specifically, it will enable the identification of priority targets in the economic domain and the development of potential DoD courses of action to ensure military advantage.