Today, the U.S. Small Business Administration (SBA) and the Department of Defense (DoD) marked a year of progress for the Small Business Investment Company Critical Technology Initiative (SBICCT). This initiative, a collaboration between the SBA and DoD, aims to increase private investment in technologies vital to national security and economic growth.

The SBA has approved 13 funds for licensing under this initiative. These funds are managed by 12 firms that plan to raise $2.8 billion in private capital, which will be matched with SBA-guaranteed loans. The goal is to invest in over 1,000 startups and small businesses developing advanced technologies.

"The SBA and DoD entered into this historic initiative to leverage the SBA’s long-standing SBIC program and its recent transformations," said SBA Administrator Isabel Casillas Guzman. "These early strong results and expanded network of investors will provide America’s innovators, producers, and supply chains with the vital funding needed to meet challenges and advance our national and economic security."

Heidi Shyu, Under Secretary of Defense for Research and Engineering, emphasized the importance of public-private partnerships in strengthening supply chains. "This first group of SBICCT Initiative funds represents a consequential milestone in demonstrating the power of public-private partnerships," she stated.

The licensed funds can access up to $175 million in SBA Debenture loans through the SBIC program. These loans are designed to align with longer-duration investment strategies focused on innovative technologies.

The SBICCT Initiative was announced by Secretary of Defense Lloyd Austin and SBA Administrator Isabel Guzman in December 2022. It formally launched in Fall 2023, receiving interest from over 100 funds. As of October 22, 2024, a total of 13 funds have been approved within the 'Green Light' approval phase.

Interest continues to grow with more applications expected before the next filing deadline on November 15, 2024.