The Office of Strategic Capital (OSC) received more than 200 applications totaling $8.9 billion in financing requests for its inaugural credit product for American manufacturing. This robust demand, which significantly exceeds the program's current lending capacity of $984 million, highlights the critical need for federal financing to scale domestic manufacturing of technologies vital to national and economic security.
The applicant pool represents a broad range of technology manufacturers from 38 states spanning various sizes, growth stages, and sectors. The financing requests range from $10 million to $150 million for equipment needs in critical technology areas such as advanced materials, microelectronics, and space technology.
Today, U.S. critical technology companies face reduced domestic manufacturing capability stemming from a lack of access to long-term, cost-effective capital. These scarce financing opportunities have enabled strategic competitors, such as the People's Republic of China, to gain footholds in key industries and supply chains. Recognizing these national security challenges, Congress authorized and appropriated funds for OSC to rapidly build investment capabilities for American manufacturing across 31 critical technology categories. OSC stood up this first-of-its-kind loan program just six months after receiving congressional appropriations, underscoring the Department's commitment to rapid execution.
OSC is reviewing applications and expects to approve financing and deploy capital to selected applicants later this year. For additional information on OSC programs and updates, please visit www.osc.mil or follow OSC on LinkedIn here.