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Defense Department and SBA Issue Licenses for $2.8 Billion Investment in Critical Technology Startups
The Defense Department and Small Business Administration have joined forces to launch the Small Business Investment Company Critical Technology initiative, which aims to inject over $2.8 billion into innovative startups and small businesses working on technologies crucial to national security. The first 13 licensed funds are now eligible to receive government-backed loans to invest in critical technology areas such as microelectronics, space technology, and advanced computing.
This initiative, introduced by Secretary of Defense Lloyd Austin and SBA Administrator Isabel Casillas Guzman, marks a significant step in supporting the growth of venture capital and technological innovation. The SBIC program, established in 1958, has a long history of backing successful companies like Apple and Intel, and now aims to provide loans to private investors to support later-stage growth in emerging industries.
With over 100 funds expressing interest in the initiative and more than $4 billion projected to be invested in 1700 portfolio companies, the SBIC program is set to make a substantial impact on the small business landscape. Companies looking to receive investments through SBIC can apply quarterly, with the next deadline set for Nov. 15.
Overall, the SBIC program has deployed over $130 billion of capital, making it a vital resource for small businesses seeking financing. This new initiative is expected to further boost innovation and growth in critical technology sectors, ultimately benefiting both investors and the national security landscape.
