Office of Strategic Capital (OSC)

Mission— Office of Strategic Capital (OSC)

In support of the Department of Defense, 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. The National Defense Authorization Act for Fiscal Year 2024 (FY2024 NDAA) states OSC shall: • Develop, integrate, and implement capital investment strategies proven in the commercial sector to shape and scale investment in critical technologies and assets; • Identify and prioritize promising critical technologies and assets that require funding and have the potential to benefit DoD; and • Make eligible investments in such technologies and assets, such as supply chain technologies, not always supported through direct investment. 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 DoD needs. OSC’s investments are guided by its FY2025 Investment Strategy, which describes that competition between the United States and its adversaries occurs over the: (i) control of economic chokepoints; (ii) scaling of key industries, and (iii) commercialization of critical technologies. OSC investments will provide the Department of Defense advantages in all these competitive arenas, especially by securing critical supply chains and rebuilding the industrial base. These activities directly align with the administration’s priorities communicated through the Interim National Defense Strategic Guidance (INDSG), and other forthcoming authoritative documents such as the National Security Strategy of the United States (NSS), Interim National Defense Strategy (NDS) and Defense Planning Guidance (DPG). Specifically, the program 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 in line with the objectives described by the FY25 Investment Strategy, INDSG, NSS, NDS, and DPG. • 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 DoD and United States Government (USG) science & technology investments.

Mission— Office of Strategic Capital (OSC)

In support of the Department of Defense, 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. The National Defense Authorization Act for Fiscal Year 2024 (FY2024 NDAA) states OSC shall: • Develop, integrate, and implement capital investment strategies proven in the commercial sector to shape and scale investment in critical technologies and assets; • Identify and prioritize promising critical technologies and assets that require funding and have the potential to benefit DoD; and • Make eligible investments in such technologies and assets, such as supply chain technologies, not always supported through direct investment. 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 DoD needs. OSC’s investments are guided by its FY2025 Investment Strategy, which describes that competition between the United States and its adversaries occurs over the: (i) control of economic chokepoints; (ii) scaling of key industries, and (iii) commercialization of critical technologies. OSC investments will provide the Department of Defense advantages in all these competitive arenas, especially by securing critical supply chains and rebuilding the industrial base. These activities directly align with the administration’s priorities communicated through the Interim National Defense Strategic Guidance (INDSG), and other forthcoming authoritative documents such as the National Security Strategy of the United States (NSS), Interim National Defense Strategy (NDS) and Defense Planning Guidance (DPG). Specifically, the program 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 in line with the objectives described by the FY25 Investment Strategy, INDSG, NSS, NDS, and DPG. • 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 DoD and United States Government (USG) science & technology investments.

Accomplishments & Planned Programs (3)