In this episode of Building the Base, Lauren Bedula and Hondo Geurts welcome back Jason Rathje, Director of the Department of Defense's Office of Strategic Capital (OSC), as the first-ever repeat guest. Jason shares his personal journey from an early passion for technology and innovation to leading OSC’s groundbreaking efforts. He highlights the progress made since his last appearance, including a major announcement of $984 million in available credit to bolster U.S. industrial capacity and national security, further bridging private capital with defense technology to maintain America's competitive edge.
Five Key Takeaways:
- OSC’s Impact: OSC has introduced a scalable financial approach, using federal credit programs to drive investment in critical technology.
- New Funding Model: A loan and loan guarantee program, that allows private sector partners to access affordable, long-term credit.
- First Notice of Funds Availability (NOFA): Nearly $1 billion for loan distribution to modernize, procure, and refurbish manufacturing equipment.
- Strategic Competition: By offering longer loan terms, OSC supports companies that are vital to national security, counteracting the market's reluctance to invest in high-risk, low-return areas such as hardware technology.
- Future Opportunities: OSC’s approach will continue to evolve, with more financial products being launched based on industry feedback.
Memorable Quotes:
- Jason Rathje: "Raising twins is maybe the hardest thing we’ve ever done... it’s certainly right up there with starting a brand-new organization in the Pentagon."
- Jason Rathje: "This is a seismic shift in how the Department of Defense engages with our industrial base... We are offering something scalable, unlike direct government spending."
