Investment Fund Financing

Small Business Investment Company Critical Technologies Initiative

Who we are:

The Small Business Investment Company Critical Technologies Initiative (SBICCT Initiative) is a first-of-its-kind partnership between OSC and the Small Business Administration (SBA) Office of Investment and Innovation aimed to attract and scale private investment into areas deemed essential for our national and economic security. The SBICCT Initiative Investment Focus is comprised of (i) the DoD Critical Technology Areas (CTAs) and (ii) supply chain and component-level technologies and processes that enable the capabilities stemming from the development of these CTAs, such as critical minerals and materials, domestic maritime industries (e.g. shipbuilding, ship repair, marine transportation capabilities, and port infrastructure), and additive and advanced manufacturing.

SBICCT Initiative:

Funds licensed under the SBICCT Initiative are eligible for access to SBA guaranteed loans designed to enhance fund-level investment returns. Each fund can access up to $175 million in loans through either the Standard Debenture, the Accrual Debenture, or as a fund-of-funds through the “Reinvestor License.” Funds are also able to participate in the SBICCT Initiative through a “Non-Leveraged License” where there is no fund leverage from the SBA, but the fund is still able to participate in Program Related Initiatives and other benefits of the program.

The SBICCT Initiative launched in September 2023, and the following PDF lists the first cohort (as of December 2024) of the 18 Licensed and Green Light Approved funds, including contact information for each fund. Collectively, this first cohort is projected to invest over $4 billion into over 1700 portfolio companies focused on all 14 CTAs and on strategic component technologies and production processes that make up the SBICCT Initiative Investment Focus. These investment funds hail from all regions of the country, with offices in 15 states and Washington, D.C. Taken together, this first cohort plans to invest across the full spectrum of stages and strategies of private investment including seed, venture, growth, buyout, direct lending, special situations, and fund-of-funds.

SBIC applications are accepted on a quarterly basis. To learn more about the SBICCT Initiative, please reference the Investment Policy Statement. Qualified investment funds or institutional limited partners exploring the SBICCT Initiative are also welcome to email capitalmarkets@osc.mil to set up a 30-minute courtesy call. Furthermore, while neither OSC nor SBA will engage with potential portfolio companies directly for the purpose of investment by an SBICCT Initiative fund, the PDF below includes contact and stage information for each fund for potential portfolio companies to use as a resource to reach out to these funds directly.

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Download PDF - First Cohort of Licensed and Green Light Approved Funds

The above graphic lists 17 of the 18 Licensed and Green Light Approved funds in the first SBICCT Initiative fund cohort. One fund that is Green Light Approved has elected not to have their name shared publicly, which is permitted under SBA policy.

Meeting the Green Light Letter Milestone:

To meet the Green Light Letter milestone, these investment funds:

Prepared and submitted a detailed application describing, among other things, their management team, investment strategy, track record, fund structure, and copies of their governing documents.
Successfully underwent a rigorous operational and investment due diligence process and legal review of their application.
Participated in a formal interview with the SBA’s Investment Committee.
Received notification that the fund had demonstrated the requisite experience and skills to successfully manage a Small Business Investment Company (SBIC) from the Investment Committee, the SBA Agency Licensing Committee, and the SBA Administrator.

After receiving the “Green Light Letter,” each fund is invited to raise private capital. When the fund is ready to close on the initial tranche of private capital, that fund will apply to receive their SBIC license – after which they will be able to access their approved leverage and begin investing in portfolio companies.