Loan capital

DOD Office to Release First Investment Strategy Focused on Critical Technologies

The Office of Strategic Capital within the Department of Defense is finalizing its first investment strategy, prioritizing artificial intelligence, biotechnology and quantum science, among other critical technology areas.

OSC Director Jason Rathje, who will speak at the Potomac Officers Club’s Budget and Priorities Summit on Oct. 17, said at a Defense News conference that his office is considering offering loan capital to companies in the said critical technology areas and to businesses enabling products based on such technologies, including semiconductor manufacturers.

The OSC expects to release the strategy in the coming months, following a review by a strategic capital advisory council, which includes the Office of the Undersecretary of Defense for Acquisition and Sustainment and the cost assessment and program evaluation office, Breaking Defense reported.

Rathje also said that his office plans to begin accepting applications for its Small Business Investment Company critical technologies initiative in the next few weeks. The official said SBIC funding will be provided to selected organizations in significant technology areas and societal sectors through a federal credit program.