Unlocking Federal Finance: Opportunities for Manufacturing and Energy Projects

By Kevin Curley and Swaroop Parekh

The first six months of the Trump Administration have brought significant changes across the federal government, including to federal funding and finance programs. In our conversations with policymakers, it’s clear the Administration intends to leverage existing financing tools to bolster domestic manufacturing and advance its “American Energy Dominance” agenda, as outlined in the Unleashing American Energy and subsequent executive orders. Under the One Big Beautiful Bill Act (OBBBA), loan authority and eligibility criteria for many of these programs have been increased and/or expanded, enhancing their capacity to support a broader range of energy and infrastructure projects and help strengthen U.S. supply chains. In response, federal financing programs are already revising their underwriting procedures, selection criteria, and project eligibility requirements to align with the Administration’s goals.

Below, BSP outlines four of the most active domestic federal debt programs, each offering long-term, flexible, and competitively priced financing for domestic energy, supply chain, infrastructure, and extraction projects. While these programs present valuable opportunities for businesses, they can be difficult to navigate due to their distinct application processes, and eligibility and compliance requirements. Further, in today’s constantly evolving political environment, combined with a reduced federal workforce, securing political backing and aligning projects with Administration priorities is more important than ever.

If you're interested in pursuing federal financing for a manufacturing, infrastructure, or energy project - or looking to ensure your technology qualifies under the revised eligibility criteria - BSP is here to help. We provide strategic guidance on program requirements, identify potential sources of federal support, and develop tailored government relations strategies to build the necessary political backing. Our team has a proven track record of success in securing significant debt capital on favorable terms through these programs.

Department of Defense Office of Strategic Capital (OSC)

The OSC Credit Program’s loan authority increased significantly under the OBBBA, from $4 billion to $200 billion, with $100 billion specifically allocated to support critical mineral supply chains.

The program’s mandate is to attract and scale private capital in industries and technologies that are critical to America’s national and economic security. OSC can provide flexible and low-cost financing to companies that support at least one of the 31 Covered Technology Categories (CTC), as listed in the FY 2024 National Defense Authorization Act. These categories span a broad range of technologies, particularly in the energy and industrial sectors, including solar, battery storage, advanced manufacturing, biomass, hydrogen generation and storage, microelectronics, spacecraft, and more. Eligible technologies must have commercial applications and not be solely for defense use.

For its first funding opportunity–which closed in February 2025–OSC had approximately $984 million in lending authority and invited applications for direct loans ranging from $10 million to $150 million. These loans were intended to finance the procurement or rehabilitation of equipment used in manufacturing processes related to the CTCs.

OSC’s second funding opportunity is expected to launch in Q3/Q4 2025, with applications accepted on a rolling basis. Reflecting the program’s expanded loan authority, this round will allow for larger loan sizes and a broader range of transaction structures—including greenfield and brownfield projects—and will support financing through corporate, non-recourse, or limited-recourse project finance.

Department of Energy Loan Programs Office (LPO)

Established under Title 17 of the Energy Policy Act of 2005, the LPO administers several initiatives aimed at supporting investments in energy infrastructure to expand U.S. generation capacity and enhance grid reliability and commercialize critical emerging energy and supply chain technologies. The LPO typically finances projects with costs exceeding $100 million and can provide ample debt capital at favorable terms, often more generous in loan size, tenor, interest rate, and amortization flexibility than a typical commercial lender. Two of LPO’s most active programs, both of which accept applications on a rolling basis, are outlined below.

Section 1706 Energy Dominance Financing Program (EDF Program): Established under the Inflation Reduction Act of 2022 and amended and extended under the OBBBA, the EDF Program provides loans and loan guarantees to projects that meet at least one of the following criteria:

• Retool, repower, repurpose or replace energy infrastructure that has ceased operations;

• Enable operating energy infrastructure to increase capacity or output; or

• Support or enable the provision of known or forecastable electric supply at time intervals necessary to maintain or enhance grid reliability or other system adequacy needs.

The definition of “energy infrastructure” is broad - and expanded further under OBBBA - to include “a facility, and associated equipment, used for enabling the identification, leasing, development, production, processing, transportation, transmission, refining, and generation needed for energy and critical minerals.”  

The OBBBA maintained the EDF’s lending authority - $200 billion remains of the original $250 billion - and extended the deadline for LPO to issue loans under the program to September 30, 2028. Further, the OBBBA appropriated $1 billion for credit subsidy, enabling the program to support riskier transactions at low interest rates, of which up to 3% can be used for the program’s administrative costs. 

Section 1703 Innovative Technology Loan Guarantee Program (1703 Program): This program serves as a “bridge to bankability” for critical emerging and innovative energy and supply chain technologies that are technically viable and commercially ready but face financing barriers due to their first-of-a-kind nature. Eligible projects must demonstrate that the technology being deployed is new or significantly improved compared to conventional methods and is not yet widely commercialized in the United States.

The program currently has over $60 billion in remaining lending authority, with approximately $20 billion that must be committed by September 30, 2026.

Export-Import Bank Make More in America Initiative (MMIA)

Established in 1934, EXIM is the official U.S. export credit agency (ECA), with a mandate to support American jobs by financing and facilitating the export of U.S. goods and services. Operating under a general statutory charter, EXIM provides support when private lenders are unable or unwilling to finance exports, or when U.S. exporters face foreign competition backed by other governments' ECAs.

EXIM offers a range of financial products, including direct loans and loan guarantees to foreign buyers of U.S. goods, export credit insurance to protect against nonpayment risk, and working capital guarantees to help U.S. exporters fulfill orders. It commonly supports sectors such as energy, infrastructure, aerospace, manufacturing, transportation, critical minerals, and supply chains.

While historically focused on international transactions, EXIM launched the Make More in America Initiative (MMIA) in April 2022. MMIA authorizes medium- and long-term loans, loan guarantees, and insurance for export-oriented domestic manufacturing projects. The initiative generally requires that at least 25% of production is intended for export, though this threshold is reduced to 15% for small businesses, climate-related technologies, and sectors designated as “transformational exports” (including renewable energy, energy storage, semiconductors, and biotech/biomedical products). Applications are accepted on a rolling basis.

MMIA transactions are issued under EXIM’s existing $130 billion loan authority, of which approximately $100 billion remains available for new commitments.

U.S. International Development Finance Corporation (DFC)

DFC is the U.S. government’s development finance institution. Created in 2019 through the bipartisan Better Utilization of Investments Leading to Development Act (BUILD Act) during President Trump’s first term, DFC partners with the private sector to mobilize capital for strategic investments around the world. It offers direct loans and loan guarantees, equity investments, political risk insurance, and technical assistance to support priority sectors including infrastructure and critical minerals, energy, food security and agriculture, health, and small business support. DFC accepts applications on a rolling basis.

Like EXIM, DFC had historically focused exclusively on international projects. However, in March 2025, President Trump signed the Executive Order Immediate Measures to Increase American Mineral Production, granting DFC authority under the Defense Production Act (DPA) to finance domestic mineral production projects. This new initiative is being implemented in collaboration with OSC, with underwriting policies and procedures currently under development.

AI alone isn't enough to help companies navigate these programs. Reach out to BSP to talk to real people with years of experience working in and alongside these agencies who know how to help you succeed.