In response to the ongoing impact of the COVID-19 pandemic, the Defense Department (DOD) and the U.S. International Development Finance Corporation (DFC) have launched a program to provide federal loans for domestic U.S. industry. The initiative will make available $100 million from COVID-19 relief funds to help reshore critical domestic manufacturing capacity.
The funds being allocated are part of the much larger $2.3 trillion Coronavirus Aid, Relief and Economic Security Act (CASE) relief package.
On May 14, President Trump signed an executive order authorizing the use of the Defense Production Act to help rebuild domestic U.S. supply chains as part of the CASE Act. The DOD and DFC signed a memo to jointly administer $100 million of these funds. The stated purpose is to help strengthen the U.S. industrial base. The two-year authorization will be run in conjunction with the Defense Production Act.
CPA considers this new loan program an important step to help rapidly reshore domestic production of pharmaceuticals, medical devices, semiconductors, and other critical industries.