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The Office of Strategic Capital

The Pentagon's lending office for manufacturers in critical supply chains.

best forManufacturing scale-up
front doorOSC funding notices (cto.mil/osc, Federal Register)
statusWatch for OSC funding notices

Capital, not contracts

Why it matters: The Office of Strategic Capital (OSC) lends money to build production. It does not buy drones. Its loans come with long due diligence.11,94

  • The drone example On July 31, 2026, OSC announced a conditional loan commitment of up to $820M to Performance Drone Works (PDW) for high-volume drone component manufacturing. To reach financial close, PDW must still meet financial, legal, technical and other due diligence. OSC said PDW is one of several domestic component producers receiving loan commitments.94
  • How to get in OSC's first direct-loan notice (equipment finance) closed to new applications on Feb 3, 2025. OSC says future offerings will be announced on its website and in the Federal Register. Not every OSC notice is for manufacturers, so check who each open notice is for before you apply.89

  • Conditional commitment A promise to lend if diligence clears. Not cash in hand.

  • Financial close When the loan is signed and money can flow.