The Department of Defense and Small Business Administration have revealed newly approved funds authorized through the Small Business Investment Company Critical Technology Initiative, or SBICCT.
The Pentagon said Tuesday the group includes four SBIC Licensees and nine Green Light Approved funds and is set to collectively invest over $2.8 billion in more than 1,000 portfolio companies.
Each of these funds can access up to $175 million in SBA-guaranteed loans meant to improve fund-level investment returns.
The funds will invest in companies focused on the DOD’s 14 critical technology aereas, component-level technology platforms and production processes as well as across asset classes such as seed, buyout, direct lending and venture funds, among others.
“This first group of SBICCT Initiative funds represents a consequential milestone in demonstrating the power of public-private partnerships to build enduring advantage by growing and modernizing our supply chains, strengthening our economic and national security, and benefiting the development and commercialization of critical technologies that are key drivers of our U.S. industrial base,” said Heidi Shyu, undersecretary of defense for research and engineering.
The 2024 Wash100 awardee added that she is proud of the cooperation between the DOD’s Office of Strategic Capital and SBA’s Office of Investment and Innovation in creating and cultivating the program.
According to the DOD, over 100 funds have expressed interest in participating in the SBICCT Initiative.
Applications for the next filing are due Nov. 15.
Investing in Key National Security Technologies
SBICCT is the first program established under the SBA-DOD partnership, which was announced in December 2022. The joint effort seeks to increase commercial investment in national security technologies.
Specifically, the initiative will match private capital with federally guaranteed loans to breathe new life into the U.S. national security supplier base and stimulate investment in critical technology areas, including artificial intelligence and autonomy, quantum science, microelectronics and space technology.