EconDefense
IND-02 / Industrial capacity, capital and credit

Guarantee private loans for defense production capacity

The President may authorize a guaranteeing procurement agency to guarantee private-institution loans supporting essential defense production and services.

Download record

At a glance

Mission goalExpand production
Possible toolIND-02 · Loans & guarantees

Authority holder: President; designated guaranteeing agency

Loans & guarantees

Mechanism tags describe the source text; they do not expand the authority.

Availability and verification

Conditional legal pathway; current funding, required determinations, and actual delegation not certified.

Requirements and limits

Eligibility & prerequisites

  • Required findings on defense essentiality, private-credit availability, cost effectiveness, repayment/security and interest unless statutory emergency exception applies
  • Applicant security generally at least 20% of loan
  • Large-shortfall notice and wait requirements
  • For the FY26 DPA Purchases appropriation, enacted text permits Secretary of Defense obligation/expenditure as if delegated necessary DPA authorities; do not treat an Executive Order as the independent substantive grant. Transaction-specific nondelegable findings and credit limits still require review.

Limits & exclusions

  • Not general banking authority; applies to identified defense shortfalls
  • Anti-Deficiency Act retained
  • Most DPA authorities expire December 11, 2026 under §4564 as amended by Pub. L. 119-103; §4558 is excepted.

Funding conditions

  • Advance credit-cost budget authority and statutory loan-principal limitation required; ordinary procurement money is not automatically credit subsidy authority.
  • FY26 enacted DPA Purchases: $321.923M no-year. This is appropriated program amount, NOT verified remaining balance or automatic credit-principal ceiling.

Read the funding and execution guide

Who contributes what

Need & planning

  • USD(A&S) / Industrial Base Policy / WIRE
    Office profile
  • Military Department capability and supply-chain sponsors

Resources

Approval

  • President / authorized statutory delegate; nondelegable findings retained where applicable

Execution

  • Assigned DPA Title III executing office and warranted contracting officer; current assignment must be verified
    Office profile

Partners & review

  • Treasury / OMB for credit
  • Other resource-jurisdiction agencies as applicable
  • Congressional notification recipients

Office links are editorial matches to the original role text, not verified delegations. Composite labels and unmatched actors are preserved.

Coordination pathway

Requirement sponsor → named planning office → resource owner and counsel → statutory approving official → authorized executing/contracting office.

Actor and execution-role sources

Legal basis

What this research establishes

Legal powerSource and conditions recorded
EligibilityProject-specific check needed
Available fundsBalances not verified
DelegationValid signature authority must be checked
ExecutionOffice capacity and approvals must be checked

Confidence: High on statutory permission; execution roles are organizational routing, not verified individual delegations.

Currentness: DPA operative 2024 text read and compared with OLRC September 2026 entries; Pub. L. 119-103, div. B §2004 extends §4564 to Dec. 11, 2026. Pub. L. 119-60 §862 removes statutory barriers to changing the Air Force Executive Agent, not itself a replacement designation.

Research target: October 2, 2026. A record-specific last-review date is not supplied. Publication date is not legal-currentness certification.

Related tools in this family