NASA and SBA partner to unlock private capital for space technology startups
NASA and the U.S. Small Business Administration (SBA) have signed a memorandum of agreement aimed at channeling private capital into small businesses developing space technologies, the agencies announced July 5. The deal leverages the SBA’s existing Small Business Investment Company (SBIC) program, which provides government-guaranteed loans to match private investment.
Under the agreement, participating SBIC investment funds must commit at least 60% of their invested capital to technologies and supply chain needs identified by NASA as strategic priorities.
The partnership is managed by NASA’s newly established Office of Strategic Capital (NOSC), an agency unit modeled after the Department of Defense’s Office of Strategic Capital, which was created by the 2024 National Defense Authorization Act and offers direct loans of up to $150 million per company across 31 technology areas. NASA’s version, for now, does not provide direct loans. Instead, it connects businesses to funding opportunities such as the SBA partnership.
Seven priority areas
NASA has defined seven strategic technology focus areas for the program.
1. Energy production, infrastructure, and storage
2. Nuclear power and propulsion
3. Advanced software, avionics, and communications systems
4. Specialized materials and components
5. Infrastructure for inhospitable environments
6. Scaled launch infrastructure
7. Biomedical and life support technology
These categories span the full range of NASA’s ambitions, from lunar and Mars surface power to next-generation spacecraft computing to life support systems for long-duration missions.
“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,” SBA Administrator Kelly Loeffler said in a statement.
NASA Administrator Jared Isaacman framed the initiative as part of a broader industrial strategy. “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,” Isaacman said.
Industry context: supply chain strain
The announcement comes at a time when the space industry is facing significant supply chain bottlenecks. A March 2026 study by PricewaterhouseCoopers, commissioned by the Aerospace Industries Association (AIA), found that the space sector’s demand is outstripping production capacity and that the supplier base remains fragile.
The study recommended “targeted subsidies, incentives, or focused contract awards” to bring new suppliers online. The NASA-SBA partnership appears designed to address exactly that gap, not through direct grants but by de-risking private investment in space manufacturing and technology firms.
Eric Fanning, president and CEO of the Aerospace Industries Association, welcomed the initiative. “The new partnership between NASA and the Small Business Administration and the launch of NASA’s Office of Strategic Capital are exactly the kinds of effort needed to maintain America’s leadership in space and to scale space manufacturing to meet this moment,” Fanning said.
A separate track from SBIR
The NASA-SBA SBIC partnership is separate from NASA’s existing Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, which award roughly $6 billion annually across 11 federal agencies for early-stage research and development.
The SBIC-based program targets later-stage commercial scaling and supply chain investment, helping companies that have already developed prototype technologies move into production. NASA’s SBIR/STTR program, meanwhile, is itself undergoing changes in 2026, transitioning from traditional solicitation cycles to a more flexible Broad Agency Announcement model.
The NOSC is still in its early stages. Unlike the DoD’s Office of Strategic Capital, which can deploy direct government loans, NASA’s version currently serves as a connector between private capital and agency-identified priorities. Whether NASA will seek authority to offer direct loans of its own remains an open question for future budget cycles.
Sources: SpaceNews, NASA, U.S. Small Business Administration, Aerospace Industries Association, PricewaterhouseCoopers