WASHINGTON, D.C. — In a joint ceremony at the Mary W. Jackson NASA Headquarters building on Monday, June 29, 2026, NASA and the U.S. Small Business Administration (SBA) signed a Memorandum of Agreement establishing the Small Business Investment Company-NASA (SBIC-NASA) Initiative.
The interagency partnership aims to scale private sector investment into domestic small businesses, component manufacturers, and technology providers supporting the long-term infrastructure of the American space economy.
The initiative merges NASA’s newly established Office of Strategic Capital (OSC) with the SBA’s existing Small Business Investment Company program. Under the structural guidelines of the agreement, NASA will systematically identify specific technological shortfalls and engineering priorities across the civil aerospace sector. The SBA will then utilize its SBIC investment framework to provide federal matching leverage to licensed private equity and venture capital funds, effectively multiplier-boosting the private capital deployed into critical supply-chain subsectors.
Strategic Objectives and Targeted Supply Chains
The initiative is designed to address production bottlenecks and expand commercial manufacturing throughput within the domestic space industrial base. Rather than offering direct federal research grants, the SBIC-NASA structure mobilizes private institutional capital to build out manufacturing capabilities required for sustained lunar operations and future Martian exploration frameworks.
Key industrial focus areas designated for capital deployment include:
- Avionics and Radiation-Hardened Electronics: High-reliability flight computing systems and component-level assembly lines.
- Nuclear Propulsion and Advanced Power Systems: Foundational power generation hardware for deep-space transit and surface-lunar operations.
- Launch and Range Infrastructure: Scaled manufacturing of high-stress mechanical components, specialized ground support equipment, and precision structures.
Aligning Federal Capital with National Space Policy
The partnership aligns with current National Space Policy targets emphasizing supply chain resilience and industrial independence. For the fiscal year 2026, the SBA has prioritized structural enhancements for domestic manufacturers, including fee reductions and elevated loan guarantees up to 90% under its broader modernization efforts. The SBIC-NASA initiative embeds technical aerospace curation into this capital-mobilization framework.
“To achieve the National Space Policy, NASA needs a stronger industrial base capable of moving at the speed this new space race demands,” said NASA Administrator Jared Isaacman. “Through the NASA Office of Strategic Capital, this partnership with the SBA will help small businesses access the capital they need to scale, strengthen critical supply chains, rebuild America’s industrial might, and deliver the outcomes necessary to ensure the United States leads the next era of space exploration.”
Operational Infrastructure and Fund Management
The operational framework will integrate directly with the SBA’s Office of Investment and Innovation. Licensed SBIC funds participating in the program will be eligible for secondary debt leverage backed by the SBA, enhancing fund-level returns while de-risking private sector exposure to capital-intensive hardware manufacturing.
“The SBA and NASA are partnering to supercharge the industrial base behind our space program and connect the innovators building critical technologies with needed capital,” stated SBA Administrator Kelly Loeffler. “Through this partnership with NASA, the SBA is mobilizing private sector investment to fuel the small businesses, manufacturers, and innovators that are driving American space dominance.“
NASA’s Office of Strategic Capital will begin hosting technical briefings and matchmaking forums in the third quarter of 2026 to connect vetted small business defense and civil contractors with participating SBIC fund managers.
