Win the Contract. Fund the Work.
A new Department of War and SBA agreement connects small defense suppliers with SBA-backed financing. Here's why funding belongs in your bid decision.
Winning your first federal contract is one hurdle. Funding it is another.
On October 12, the Department of War and the SBA signed a memorandum of agreement building on the Smaller War Plants Commission. The War Department's Economic Defense Unit will identify small defense suppliers with financing needs and refer them to SBA, which will use its existing 7(a) and 504 lender networks to connect eligible firms with SBA-backed capital.
The focus is defense-critical manufacturing and supply chains. But the lesson applies to every commercial firm going federal, including IT, MSP and service companies. How you pay for the work is part of the decision to bid.
Before you bid, ask
- Can I carry payroll while the first government payment cycle runs?
- Do I have a lender relationship today, before I need it?
- Does my price reflect what it really costs to perform?
What to do now
Talk to an SBA lender or your local APEX Accelerator about 7(a) options, and decide how you will fund the work before you bid.
From my military experience as the government customer, and then decades on the contractor side, I've seen good companies win work they couldn't fund.
Planning how to finance your first contract? Book a free fit conversation and we'll talk it through.
Sources: SBA press release (Oct 12, 2026) · SBA: Smaller War Plants Commission established (Aug 25, 2026) · Stars and Stripes (Oct 13, 2026) · The Hill