Submission for OMB Review; Comment Request, 67426-67427 [2024-18540]

Agencies

• DEPARTMENT OF DEFENSE
• Office of the Secretary

[Federal Register Volume 89, Number 161 (Tuesday, August 20, 2024)]
[Notices]
[Pages 67426-67427]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-18540]



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DEPARTMENT OF DEFENSE

Office of the Secretary

[Docket ID: DoD-2024-OS-0064]


Submission for OMB Review; Comment Request

AGENCY: Office of Strategic Capital, Office of the Under Secretary of 
Defense for Research and Engineering (OUSD(R&E)), Department of Defense 
(DoD).

ACTION: 30-Day information collection notice.

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SUMMARY: The DoD has submitted to the Office of Management and Budget 
(OMB) for clearance the following proposal for collection of 
information under the provisions of the Paperwork Reduction Act.

DATES: Consideration will be given to all comments received by 
September 19, 2024.

ADDRESSES: Written comments and recommendations for the proposed 
information collection should be sent within 30 days of publication of 
this notice to www.reginfo.gov/public/do/PRAMain. Find this particular 
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.

FOR FURTHER INFORMATION CONTACT: Reginald Lucas, (571) 372-7574, 
[email protected].

SUPPLEMENTARY INFORMATION: 
    Title; Associated Form; and OMB Number: Office of Strategic Capital 
Loan Application Part 1 and Part 2; OMB Control Number 0704-OSCL.
    Type of Request: New collection.
Application Part 1
    Number of Respondents: 50.
    Responses per Respondent: 1.
    Annual Responses: 50.
    Average Burden per Response: 15 hours.
    Annual Burden Hours: 750.
Application Part 2
    Number of Respondents: 10.
    Responses per Respondent: 1.
    Annual Responses: 10.
    Average Burden per Response: 40 hours.
    Annual Burden Hours: 400.
Total
    Number of Respondents: 50.
    Annual Responses: 60.
    Annual Burden Hours: 1,150.
    Needs and Uses: This information collection is essential to process 
applications for loans and loan guarantees under section 903 of the 
Fiscal Year 24 National Defense Authorization Act (``NDAA'').
    Section 903 of the NDAA authorizes the Office of Strategic Capital 
(``OSC''), established within the ``DOD'' OUSD(R&E), to implement a 
pilot program to provide direct loans and loan guarantees to eligible 
entities. These investments are for technologies that fall within 
specified covered technology categories and have potential applications 
beyond defense. The eligibility and selection criteria for investments 
include the extent to which an investment supports U.S. national 
security or economic interests, the likelihood that direct loans would 
accelerate the investment, and the creditworthiness of the investment.
    To properly underwrite the loans and assure that the loans satisfy 
these requirements, OSC must collect comprehensive information from 
entities seeking funding. This is accomplished through a two-part 
application process, where Application Part 1 gathers basic information 
for a preliminary assessment of whether the project is eligible, and 
Application Part 2 uses in-depth financial and technical information on 
the project's economic viability and economic benefits to confirm 
eligibility and assess alignment with OSC's strategic program 
priorities and requirements. OSC will assess Application Part 1 
findings and will, on a case-by-case basis, invite potential borrowers 
to submit an Application Part 2. In certain circumstances, as 
proscribed by law, OSC will also consult with the Office of Management 
and Budget on Application Part 1 findings.
    OSC must collect Application Part 1 and Application Part 2 from 
entities seeking funding. OSC will issue a Notice of Funding 
Availability (``NOFA'') to provide entities with an opportunity to 
submit applications.
    Both Application Part 1 and Part 2 will be accessible to the public 
for download from the OSC website at https://www.cto.mil/osc/. The 
applicants download the application, which is a fillable PDF document, 
complete the application, and then email the application, along with 
any additional required documents, such as financial statements, to a 
designated OSC email box.
    Together, the Applications Part 1 and Part 2 collect various kinds 
of information about the borrower (or sponsor, as applicable), the 
project for which the financing is sought, and related issues such as 
the environmental, economic, national security, and social impacts of 
the proposed project. The applications also collect information about 
the ownership and management of the borrower. All the collected 
information will be reviewed and evaluated by OSC underwriters, 
technical advisers, and engineers. The financial information will be 
analyzed through a variety of methods, including, but not limited to, 
financial analysis tools, to make sure that the borrower has the 
financial ability to repay the loan. Technical information regarding 
the underlying commercial project or transaction will be analyzed to 
make sure that the project relates to a technology within the 31 
covered technology categories set forth in NDAA section 903 and to 
confirm the applicant's engineering representations. In certain cases, 
environmental engineers will review the underlying project or 
transaction for compliance with applicable environmental rules and 
regulations. Overall, the review process aims to determine loan 
eligibility and ensure alignment with strategic objectives. After 
complete underwriting due diligence, the information collected is 
summarized in a Credit Memorandum to be approved by a designated 
approver. The designated approver for a specific transaction will 
depend on the size of the transaction, with the largest being approved 
by the Director of OSC, middle range being approved by a Credit 
Committee, and the smallest approved by the Director of the OSC loan 
program. The specific thresholds for each level have not yet been 
finalized. Once the transaction is approved, the applicant will be 
notified and OSC will proceed to legally document the transaction.
    The burden estimates above are based on each NOFA or application--
that is, they assume OSC offers only a single funding opportunity per 
year. As OSC programs grow, it will offer more funding opportunities 
each year, thus resulting in greater aggregate annual burdens. It is 
possible, though unlikely, that any given borrower will submit more 
than one application in any given year, for the simple reason that the 
funding opportunities will vary across OSC programs. OSC's best 
estimate at this time is that OSC could offer approximately five 
funding opportunities per year, or that applications could be accepted 
on a rolling basis, resulting in application numbers equivalent to 
approximately five funding opportunities per year. Therefore, OSC 
estimates that, once it is fully staffed and operating, the annual

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burden numbers set forth above should be multiplied by five.
    Affected Public: Businesses within the definition of ``eligible 
entity'' as defined in 10 United States Code (U.S.C.) 149(e)(3) and 
operating within the 31 covered technology categories listed in 10 
U.S.C. 149(e)(2).
    Frequency: On occasion.
    Respondent's Obligation: Voluntary.
    OMB Desk Officer: Ms. Jasmeet Seehra.
    You may also submit comments and recommendations, identified by 
Docket ID number and title, by the following method:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
    Instructions: All submissions received must include the agency 
name, Docket ID number, and title for this Federal Register document. 
The general policy for comments and other submissions from members of 
the public is to make these submissions available for public viewing on 
the internet at https://www.regulations.gov as they are received without 
change, including any personal identifiers or contact information.
    DOD Clearance Officer: Mr. Reginald Lucas.
    Requests for copies of the information collection proposal should 
be sent to Mr. Lucas at [email protected].

    Dated: August 14, 2024.
Patricia L. Toppings,
OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2024-18540 Filed 8-19-24; 8:45 am]
BILLING CODE 6001-FR-P