National Security Fund Finance (“NSFF”) Program

The National Security Fund Finance (NSFF) Program, issued by the Office of Strategic Capital under the Department of War, is a fund-level financing initiative designed to scale private capital investment in critical minerals and materials supply chains vital to United States national security. The program provides credit facilities to qualified, SEC-registered investment fund managers to address gaps, shortages, and vulnerabilities in these supply chains. By combining government loans with private capital, the program aims to act as a force multiplier for national security priorities, specifically targeting the origination of eligible assets such as first lien loans. Qualified fund managers must demonstrate strong alignment with national security objectives, including commitments to reshoring, restricted entity covenants, and the Department of War's ability to direct production output during conflicts. Key financial requirements include maintaining a loan-to-value ratio of 91 percent or less and adhering to specific borrowing base requirements. The program involves a structured fee arrangement, including a one-time initial due diligence and underwriting fee of 100 basis points at closing and draw fees ranging from 150 to 200 basis points. Additionally, the government must receive a right of first offer to purchase portfolio company output or services at market prices for at least 10 years. Proposals are due by November 1, 2026, and must be submitted in four volumes covering firm eligibility, investment strategy, and proposed revisions to terms. Evaluation is based on economic and national security alignment, the firm's proven investment track record, creditworthiness, and the alignment of incentives between managers and the government. All applicants must be registered in the System for Award Management and provide a valid Unique Entity Identifier. Selection is expected by January 10, 2027, with conditional commitments following by March 10, 2027.