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.

Action briefPDF dossier · original 168Download record
Authority / instrument · IND-09

Technology credit

Industrial capacity, capital and credit

Statute & instrument
Authority holder

OSC Director, within Secretary of Defense program authority

What this does not authorize / hard limit

Guarantee is not purchase of stock

Recorded executor

OSC Director and credit transaction team

Continue to actor →

Institutional routing from the recorded executing role. See the office profile for its published responsibilities and engagement routes.

Legal basisSources linkedLegal sources and instrument limits are recorded.
RequirementsGates recordedRead the requirements for this instrument; applicability depends on the proposed action.
Public fundingScale documentedSpecific credit subsidy and principal authority in appropriations; DoD Credit Program Account and Federal Credit Reform Act. Office budget figures are separate institutional context, not an allocation to this instrument.
Assigned rolesRemit sourcedPublic sources describe institutional authority. The instrument identifies approval and execution roles; a specific signature remains transaction-dependent.
EngagementIntake unverifiedOSC describes both loan and guarantee authority. A current guarantee-specific application process was not verified in the sources reviewed. The Equipment Finance first-round closure does not establish a universal guarantee closure. Reviewed 2026-10-04.

Public evidence describes the institution and instrument; it is not approval of an individual transaction.

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.

Dated program and routing context

OSC loan guarantees

OSC describes both loan and guarantee authority. A current guarantee-specific application process was not verified in the sources reviewed. The Equipment Finance first-round closure does not establish a universal guarantee closure.

Use the guarantee instrument’s published terms; do not import the direct-loan 80% nonfederal-capital requirement as a blanket guarantee-percentage rule.

Research gap, not a finding that OSC has no guarantee authority or program. NSFF and SBICCT are distinct fund-manager pathways.

Public-source check: 2026-10-04. This check does not refresh the entire legal record.

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 basisSources linkedLegal sources and instrument limits are recorded.
RequirementsGates recordedRead the requirements for this instrument; applicability depends on the proposed action.
Public fundingScale documentedSpecific credit subsidy and principal authority in appropriations; DoD Credit Program Account and Federal Credit Reform Act. Office budget figures are separate institutional context, not an allocation to this instrument.
Assigned rolesRemit sourcedPublic sources describe institutional authority. The instrument identifies approval and execution roles; a specific signature remains transaction-dependent.
EngagementIntake unverifiedOSC describes both loan and guarantee authority. A current guarantee-specific application process was not verified in the sources reviewed. The Equipment Finance first-round closure does not establish a universal guarantee closure. Reviewed 2026-10-04.

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.

Review scope: Original research target October 2, 2026; no record-specific last-review date supplied. Publication is not legal-currentness certification.

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