This bill creates a new Office of Strategic Capital within the Department of Defense to provide financial support for projects and investments critical to national security. The office, headed by an executive director appointed by the Secretary of Defense, would offer loans, loan guarantees, equity investments, and technical assistance to eligible entities including businesses, nonprofits, state and local governments, and tribal governments working on assets vital to national security or protecting against acquisition by U.S. adversaries. The legislation establishes two Treasury accounts to fund these activities: a Credit Program Account for loans and guarantees, and a Strategic Capital Equity Account for equity investments. Loans would carry interest rates tied to Treasury securities (though the Secretary can waive this requirement for nationally critical projects), have repayment periods up to fifty years, and comply with federal credit reform rules. The office must submit annual reports to Congress and notify defense committees within thirty days of making major investments. The authorities granted under this bill expire on October 1, 2028, unless extended by Congress.
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