Pentagon teams up with SBA

WASHINGTON - The Defense Department (DoD) controls spy satellites, special operators and nuclear weapons, but can’t do what 118 other government offices can: Run a federal credit program to boost private-sector investment in its priorities. That’s the limitation the Pentagon faces as it stands up the new Office of Strategic Capital to encourage investment in cutting-edge technology, OSC Director Jason Rathje explained. For now, OSC must work through partners outside DoD to entice investment in tech it wants to see developed - especially critical hardware like semiconductors and nanotubes, which have suffered neglect as investment sought higher returns in software. Its first effort will piggyback on the Small Business Administration’s Small Business Investment Company (SBIC) program. SBA, unlike the Defense Department, can legally leverage “the full faith and credit” of the federal government to guarantee loans to innovative firms. The aim is to give private investors more confidence to invest their own money in technologies that might otherwise be too high-risk or low-return. (Breaking Defense 03/20/23) Pentagon teams up with SBA to sweeten the pot for tech investments - Breaking Defense