Space Industry Access to Capital
NASA Science ·
How it Works. The initiative leverages privately managed investment funds, known as Small Business Investment Companies (SBICs), that are licensed and regulated by SBA to make loans or equity investments in U.S. small businesses. These funds raise capital from private investors, and SBA provides government-guaranteed financing that increases the amount of capital available for investment. […] The post Space Industry Access to Capital appeared first on NASA Science .
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The initiative leverages privately managed investment funds, known as Small Business Investment Companies (SBICs), that are licensed and regulated by SBA to make loans or equity investments in U.S. small businesses. These funds raise capital from private investors, and SBA provides government-guaranteed financing that increases the amount of capital available for investment. The NASA-SBA partnership helps direct that investment toward technologies, suppliers, and manufacturing capabilities that support future missions.
Banks are often the right choice for working capital, equipment purchases, and businesses with predictable cash flow. Traditional lenders typically focus on a company’s ability to repay based on current assets, collateral, and financial performance. However, businesses developing new technologies, expanding manufacturing capacity, or scaling operations may need capital that doesn’t fit neatly into a conventional bank loan. Through the NASA-SBA partnership, small businesses may gain access to investment capital that can provide financing options a traditional bank cannot.
Investment capital may be structured as a loan, an equity investment, or a combination of both, depending on the needs of the business and the investment strategy of the fund. While NASA helps identify strategic technology priorities and SBA licenses and oversees participating funds, individual investment decisions are made by the privately managed investment funds, not by NASA or SBA. A typical investment is made over a three-year period and may be provided in one of the following forms:
To get started, take the following steps:
Learn more about the SBA SBIC Program – https://www.sba.gov/loans/additional-funding-opportunities/investment-capital/
For details about this new initiative and NASA’s Office of Strategic Space Finance, visit – https://www.nasa.gov/strategiccapital
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