Investment Fund Financing
Small Business Investment Company Critical Technology Initiative
Who we are:
The Small Business Investment Company Critical Technology Initiative (SBICCT Initiative) was announced by Secretary of Defense Lloyd Austin and SBA Administrator Isabel Casillas Guzman in December 2022. Through this first-of-its-kind partnership, OSC and SBA’s Office of Investment and Innovation (OII) aim to strengthen United States national and economic security by attracting and scaling private investment into the DoD Critical Technology Areas (CTAs) and into component-level technologies and production processes.
SBICCT:
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 which can be accessed through the new Accrual Debenture, which aligns with the cash flows of longer duration and equity-oriented investment strategies and may also be accessed through the longstanding SBA Standard Debentures that aligns to credit strategies. There is also a “fund of funds option” included as part of the SBICCT Initiative called the “Reinvestor License.”
The SBICCT Initiative launched in September 2023, and the following PDF lists the first cohort of 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. 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.
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.
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. Seven funds in the first cohort are fully licensed and have commenced investment activity.
Office of the Under Secretary of Defense,
Research and Engineering (OUSD(R&E))
3030 Defense Pentagon, Washington, DC 20301-3030
Contact Us
Contact Us
Information for the USD(R&E):
Contact OUSD(R&E) Staff
For website issues: Contact Webmaster