EconDefense
IND-09 / Industrial capacity, capital and credit

Guarantee private loans for OSC-eligible investments

OSC can guarantee loans for eligible investments with established private-lender rates, stated guaranteed principal percentage and credit controls.

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At a glance

Mission goalExpand production
Possible toolIND-09 · Loans & guarantees

Authority holder: OSC Director, within Secretary of Defense program authority

Loans & guaranteesInvestment & capital

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

  • Eligible dual-use technology and entity
  • Loan guarantee agreement and credit assessment
  • Congressional notification within 30 days of use

Limits & exclusions

  • No new guarantees after Oct. 1, 2028 absent extension
  • §149(d) 80% rule is expressly written for direct-loan investments, not a blanket guarantee percentage rule
  • Guarantee is not purchase of stock

Funding conditions

  • Specific credit subsidy and principal authority in appropriations; DoD Credit Program Account and Federal Credit Reform Act.
  • Enacted FY26 credit appropriation $97.770M no-year with $4.390B principal ceiling. FY25 reconciliation separately supplied $500M minerals-focused and $1B general capital-assistance funding through Sep.30,2029, each with $100B principal ceiling. These are statutory amounts, not remaining balances; do not simply add ceilings into deployable cash.

Read the funding and execution guide

Who contributes what

Need & planning

  • OSC investment and credit teams
    Office profile
  • Technology and acquisition requirement sponsors

Resources

Approval

Execution

Partners & review

  • Private lenders and eligible entities
  • Treasury / OMB credit-scoring officials
  • DoD legal counsel

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: 2024 official U.S. Code operative text read; relevant amendments in Pub. L. 119-60 (Dec. 18, 2025), 119-21 and 119-103 examined. Rolling OLRC source consulted where retrievable; transaction-specific later-law and delegation confirmation remains necessary.

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

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