 has officially announced the release of its first Notice of Funding Availability (NOFA).){kind=link}
The Office of Strategic Capital (OSC) has officially announced the release of its first Notice of Funding Availability (NOFA). This marks an important step forward in supporting U.S.-based companies that are working on critical technologies. The NOFA sets out the eligibility criteria and begins the application process for companies looking to secure loans from the OSC. These loans will help companies expand their production capabilities. And to commercialize key technologies that are essential for national security.
What the NOFA Means for U.S. Companies
The release of the NOFA is a significant move by the Department of Defense (DoD). It is to encourage the growth of industries producing critical technologies. These technologies are cruscial for the economy. They also are vital for national security and maintaining a technological edge in the military.
With this NOFA, companies that manufacture and produce important technology components in the U.S. can now apply for loans from the OSC to help them grow. This financial assistance will focus on helping companies increase production capacity by funding equipment and other production needs. In the long run, this will ensure that the U.S. maintains a steady supply of advanced technology products that are critical to national defense.
Deputy Secretary of Defense Kathleen Hicks emphasized that this effort demonstrates the DoD’s commitment to using every available tool to maintain the country’s technological advantage.
Supporting 31 Critical Technology Categories
The NOFA specifically targets companies involved in producing critical technology components across 31 identified categories. These categories were outlined as priority areas in the National Defense Authorization Act for Fiscal Year 2024 (FY24 NDAA).
The purpose of this funding is to help these companies scale their production to meet growing demand for these technologies. By offering financial support, the OSC is ensuring that these companies have the resources they need to expand and continue developing technologies that are crucial to national security.
The technology categories range from advanced materials and artificial intelligence to microelectronics and space systems. These technologies play a key role in both the civilian economy and military operations, making it essential to develop and produce them domestically. This focus will help reduce reliance on foreign suppliers and strengthen the U.S. industrial base.
How the NOFA and OSC Process Works
The NOFA lays out detailed eligibility criteria that companies must meet to qualify for OSC financing. This includes being based in the United States and working in one of the 31 critical technology categories. The application process is designed to be thorough, ensuring that only eligible and prepared companies can access the loans.
Applying for funding will allow qualified businesses to pay for equipment purchases and other costs associated with expanding their operations. The OSC loans are designed to help companies grow their capacity and speed up the commercialization of these critical technologies.
By setting clear eligibility requirements and outlining the application process, the OSC aims to make the funding process as transparent and efficient as possible. Companies are encouraged to review the full details of the NOFA, which can be found on the Federal Register website.
Growing Role of OSC in National Security
The creation of the OSC is part of a broader strategy to strengthen the U.S. economy and national security. Secretary of Defense Lloyd J. Austin III created the OSC in December 2022. With the goal of bringing in and growing private investment for critical national security initiatives.
Congress officially passed the FY24 NDAA, which included the OSC, into law in December 2023. This gave the OSC the legal authority to issue loans and loan guarantees to U.S.-based companies working on critical technologies. Congress also provided funding in March 2024 to allow the OSC to offer up to $984 million in loans to eligible companies. These funds will enable U.S. companies to invest in scaling up their production capabilities at a relatively low cost to the government.
OSC Securing a Resilient U.S. Industrial Base
The OSC’s mission is not just about providing financial assistance; it is about securing a strong and resilient industrial base for the future. By increasing both public and private investment, the OSC is working to ensure that the U.S. remains a global leader in technology development and production.
With the first NOFA now available, the OSC is encouraging U.S.-based companies to take advantage of this opportunity and apply for financing. This will help speed up the commercialization and production of key technologies. These technologies are critical for both economic growth and national defense.
The OSC is also urging industry leaders and stakeholders to spread the word about the NOFA to their colleagues and partners. By doing so, more companies will be aware of the funding opportunities available to them. This will allow for a wider impact on the U.S. economy and industrial base.
Looking Ahead
As the OSC continues to grow and expand its role in supporting U.S. industries. The release of this first NOFA is a crucial milestone. It will provide financial support to companies working on critical technologies. The OSC is helping to ensure that the U.S. remains at the forefront of technological innovation.
For companies interested in applying for OSC loans, the full NOFA is available on the Federal Register website. Now is the time to take action and help strengthen America’s industrial and technological future.
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