Revolutionizing Investment in Critical Technology: SBICCT Initiative
Insider Brief
- The Department of Defense and U.S. Small Business Administration announced the approval of the first group of investment funds under the SBICCT Initiative, set to invest over $2.8 billion in 1,000+ companies.
- Access to up to $175 million in SBA guaranteed loans will support investments in critical technologies crucial to U.S. economic and national security.
- Launched in late 2023, the SBICCT Initiative aims to boost private investment in critical technology sectors, with over 100 funds showing interest in participation.
Breaking news from the Department of Defense (DoD) and the U.S. Small Business Administration (SBA) as they unveil the first wave of Small Business Investment Company (SBIC) Licensees and Green Light Approved investment funds sanctioned under the Small Business Investment Company Critical Technology Initiative (SBICCT Initiative). With a combined investment forecast exceeding $2.8 billion into a portfolio of over 1,000 companies, these funds mark a significant step towards promoting innovation and growth in the critical technology landscape.
The SBICCT Initiative, introduced in December 2022, aims to encourage and expand private investment in technology areas essential for economic and national security interests. Funds approved under this initiative will have access to SBA guaranteed loans, with each fund eligible for up to $175 million in loans designed to enhance investment returns for critical technologies.
Through a groundbreaking partnership, the DoD’s Office of Strategic Capital (OSC) and the SBA’s Office of Investment and Innovation (OII) seek to elevate private investment in critical technologies, including vital components and production processes crucial to U.S. national security. The initiative offers Program Related Initiatives to bolster the implementation of the Licensee’s investment strategies and drive value in the sector.
Participants in the SBICCT Initiative celebrate a significant milestone, focusing on the power of public-private partnerships to fortify supply chains, enhance economic and national security, and propel the development of cutting-edge technologies that underpin the U.S. industrial base.
The collaboration between SBA and DoD exemplifies a commitment to sustaining America’s competitive advantage, highlighting the critical role of these agencies in fostering innovation and reinforcing national interests through secure investment channels.
As the initiative gains traction, with 13 funds licensed and greenlighted by the SBA to raise private capital, the forecasted investment surpasses $4 billion directed towards nearly 1,700 companies emphasizing DoD Critical Technology Areas. The SBICCT Initiative continues to attract interest, with over 100 funds expressing keen interest in joining the program, fostering a dynamic ecosystem primed for growth and advancement.
For more details on the SBICCT Initiative and the application process, visit the Investment Policy Statement here.