Investment Policy Statement, Small Business Investment Company Critical Technology Initiative

The Small Business Investment Company Critical Technologies Initiative (“SBICCT Initiative”) is a joint effort based on a Memorandum of Agreement between the Small Business Administration (“SBA”) and the Department of Defense (“DoD”) to increase private capital investment in critical technologies, supply chain and component-level technologies and production processes vital to U.S. national and economic security interests. The SBICCT Initiative is the first effort under the SBA-DoD partnership which began in 2020, was officially launched by the Secretary of Defense and the SBA Administrator on December 3, 2022, and began accepting applications for licensure as an SBICCT Initiative fund on September 29, 2023.

This Investment Policy Statement (IPS) details the joint SBICCT Initiative objectives and governance framework with respect to the overall SBICCT portfolio. Specifically, the SBICCT IPS is intended to:

a) Outline SBICCT Initiative investment objectives and portfolio considerations including strategic sector, investment stage, asset allocation, portfolio construction, and management of SBICCT Licensees.

b) Outline the SBICCT Initiative portfolio governance framework, detailing the respective roles and responsibilities of SBA and DoD (OSC).

c) Outline the approaches to risk management, monitoring, and reporting requirements of the SBICCT Initiative.