Original Broadcast Date: 08/23/2026
David Lorch, Director of the Office of Strategic Capital (OSC), says the OSC serves as a bridge between capabilities the United States needs for national security and what the private sector can currently provide. OSC identifies shortages, gaps and vulnerabilities in critical supply chains and uses capital to help close them.
That means OSC is not simply looking for promising companies or technologies. Lorch says national security is the starting point for every investment decision.
“We apply the same methodology that we do in the private sector, just with a different goal,” Lorch explains. While private investors generally seek a financial return, OSC’s goal is U.S. national security.
The office works closely with experts across the department to understand where vulnerabilities exist. Lorch says OSC regularly consults with Research and Engineering, Acquisition and Sustainment, the military services and other government organizations. When a company applies for a loan, OSC brings that opportunity back to those experts to determine how serious the shortage is and whether the company’s technology can meaningfully address it.
One example is Sila, a battery technology company discussed during the interview. Lorch says the company can make battery components using silicon, which is available domestically, rather than relying on graphite imported from abroad.
The challenge is getting that capability to scale quickly.
Because the battery technology is relatively new and market prices can fluctuate, Lorch says building manufacturing capacity without government support could take decades. An OSC loan can accelerate the company’s business plan and help establish production in the United States sooner, reducing reliance on foreign inputs.
OSC’s evaluation process combines that national security focus with private-sector financial expertise.
For the battery investment, Lorch says OSC assembles experts from across government, including battery specialists from Research and Engineering, Acquisition and Sustainment, the Army, Air Force and Navy, along with the Commerce and Energy departments. The group conducts a detailed technology review and reaches a unanimous conclusion that the technology can help address U.S. supply chain vulnerabilities.
Not every company that approaches OSC is ready for an OSC loan, however.
Companies arrive at different stages of development, and Lorch says the office tries to act as a “concierge” to determine where they fit. An earlier-
Congress has given OSC 34 areas of focus. If a company falls outside those authorities, the office can help connect it with an organization that is better positioned to support it.
Those priorities are not static. Lorch says OSC continuously hears from department leadership, the military services and other organizations about where supply chain needs are changing.
To make those priorities clearer to industry, OSC is developing white papers across its core verticals. The goal is to tell companies where the office is looking to deploy funding and where it sees important national security vulnerabilities.
That communication is particularly important because OSC focuses on dual-use capabilities. Lorch says that often means working with tier-two, tier-three and tier-four suppliers producing the parts, materials and components that eventually feed into major national security supply chains.
The office itself also reflects a different approach to government investment.
Lorch says most of his team comes from the private sector, with many employees entering government for the first time. Their experience with financial analysis and credit agreements translates directly to OSC’s work, but the first test for every potential transaction remains national security fit.
Recruiting that talent means convincing successful private-sector professionals to enter public service. Lorch says OSC has attracted people who take seven-figure pay cuts to join the mission.
He describes the ideal OSC employee simply: mission-oriented, humble, hardworking, smart and willing to partner closely with the services and the department. OSC is still expanding and looking for associates, vice presidents, managing directors and senior managing directors.
Ultimately, Lorch says OSC will judge itself by a straightforward measure.
Success means putting its loan authority to work with companies that close national security gaps and vulnerabilities.
That goal also defines how Lorch views his own tenure. If OSC can make investments that address critical shortages and strengthen the supply chains supporting U.S. national security, he says the organization — and its people — are accomplishing the mission they came to do.
Key Takeaways:
1. OSC uses loans to address national security supply chain gaps. David Lorch says the Office of Strategic Capital identifies shortages and vulnerabilities that affect U.S. national security and provides financing to companies that can help address them.
2. National security is the first consideration for OSC investments. Lorch says OSC uses private sector investment and financial analysis methods, but evaluates companies first on whether their capabilities address a national security need.
3. OSC is outlining its funding priorities for industry. Lorch says the office is developing white papers that identify the areas where OSC is seeking funding opportunities, including dual-use technologies and suppliers that contribute to national security supply chains.