Hegseth, Loeffler announce commission to surge aid to small defense contractors

Hegseth, Loeffler announce commission to surge aid to small defense contractors

Defense Secretary Pete Hegseth and Small Business Administration (SBA) Administrator Kelly Loeffler announced on Tuesday the establishment of a Smaller War Plants Commission that would surge expertise and funds to smaller defense companies.

“Our message is clear: President Trump is ending the era of dependence on foreign supply chains and our adversaries. This historic long-term commitment will reinforce the industrial depth that stands proudly behind the strongest military on earth. When we back the businesses who supply our forces, we outbuild, out innovate and overwhelm any adversary,” Hegseth said in a 3-minute video posted on social platform X. “We are transforming industrial capability into generational battlefield advantage, and in doing so, we will deter conflict , preserve peace and ensure that no adversary tests American strength,” Hegseth said. The new commission was billed as an equivalent to the Smaller War Plants Corporation , which was formed by Congress in 1942 to aid small businesses in building war supplies during World War II. It made loans, obtained contracts and provided technical assistance to small plants. “Our joint mission will supercharge funding to those building our supply chain, tooling up, expanding, innovating and hiring to deliver capability to the warfighter,” Loeffler said in the same video. “The era of offshoring the production of power projection to our adversaries is over.” Small manufacturers comprise 70 percent of the U.S. defense industrial base , according to Loeffler, who added that SBA oversees nearly $500 billion in small business portfolio. “Thanks to President Trump and Secretary Hegseth, the world’s strongest military will be backed by the world’s most nimble industrial base , offering our warfighters asymmetric advantage and our nation peace through strength,” the SBA administrator said.

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