The President may authorize a guaranteeing procurement agency to guarantee private-institution loans supporting essential defense production and services.
What this is not / limit: Not general banking authority; applies to identified defense shortfalls
Executing role: Assigned DPA Title III executing office and warranted contracting officer; current assignment must be verified
Authority holder
President; designated guaranteeing agency
Eligibility gate
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.
Funding condition
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.
All recorded limits
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.
What this is not / limit: Not equity or unrestricted corporate rescue
Executing role: Assigned DPA Title III executing office and warranted contracting officer; current assignment must be verified
Authority holder
President or authorized delegate
Eligibility gate
Private financing not otherwise available on reasonable terms
Apply §4532(b)(2) national-emergency findings as written
Aggregate shortfall threshold notification or valid waiver
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.
Funding condition
Specific advance credit authority and Federal Credit Reform/appropriations treatment must be confirmed; §4532 retains the Anti-Deficiency Act.
FY26 enacted DPA Purchases: $321.923M no-year. This is appropriated program amount, NOT verified remaining balance or automatic credit-principal ceiling.
All recorded limits
Loan terms and repayment assessment required
Not equity or unrestricted corporate rescue
Most DPA authorities expire December 11, 2026 under §4564 as amended by Pub. L. 119-103; §4558 is excepted.
Provide loans for eligible investments in enumerated covered technology categories; the legal form is capital assistance, not an unrestricted equity fund.
What this is not / limit: Provide loans for eligible investments in enumerated covered technology categories; the legal form is capital assistance, not an unrestricted equity fund.
Executing role: OSC Director and credit transaction team
Authority holder
Secretary of Defense acting through OSC Director
Eligibility gate
Eligible entity and covered dual-use technology, not solely defense application
At least 80% nonfederal capital for the specific technology at investment time
Creditworthiness, reasonable repayment assurance and selection criteria
Funding condition
Advance appropriations specifically providing credit assistance; Federal Credit Reform cost and DoD Credit Program Account. A headline lending ceiling is not cash available.
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.
All recorded limits
New loans and technical-assistance authority expire Oct. 1, 2028
Direct-loan term up to 50 years
Treasury benchmark interest and nonsubordination rules have specific waivers
What this is not / limit: Guarantee is not purchase of stock
Executing role: OSC Director and credit transaction team
Authority holder
OSC Director, within Secretary of Defense program authority
Eligibility gate
Eligible dual-use technology and entity
Loan guarantee agreement and credit assessment
Congressional notification within 30 days of use
Funding condition
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.
All recorded limits
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
An uncodified pilot expressly lists loans, guarantees, purchase commitments, cost-sharing and third-party awards supporting debt/equity investment in small/medium manufacturers.
Help DoD provide capital assistance to entities, including foreign entities, whose investments facilitate the Department's efforts. The statutory definition covers loans, loan guarantees and technical assistance.
What this is not / limit: Helping DoD provide assistance is not verification of an independently operating OEC direct-loan or guarantee program.
Executing role: Office of Expanded Competition Director
Authority holder
Office of Expanded Competition within the Office of the Secretary of the Air Force; headed by the OEC Director
Eligibility gate
The entity's investments must facilitate DoD efforts.
Confirm the underlying instrument's eligibility, funding, credit requirements and authorized executing office.
Funding condition
§9025 does not specify a dedicated appropriation or available balance. Identify legally available funds and the fiscal conditions of the proposed action.
All recorded limits
Helping DoD provide assistance is not verification of an independently operating OEC direct-loan or guarantee program.
The capital-assistance definition does not establish unrestricted equity-purchase authority.