US Doubles Down on Minerals, Manufacturing and Nuclear Power for Defense
The US Small Business Administration (SBA) and the US Department of War this week announced the creation of the Smaller War Plants Commission (SWPC), a new body meant to steer federal money, contracts and regulatory relief toward the small manufacturers that supply the American military.
The commission was established through a memorandum of understanding between the two agencies. Small businesses account for more than 70 percent of the US defense industrial base, according to the SBA.
“Since our nation’s earliest days, American battle readiness has run through small businesses — from the local factories to the labs that forge the Arsenal of Freedom,” said SBA Administrator Kelly Loeffler.
“Under President Donald J. Trump, the Smaller War Plants Commission will end the era of dependence by putting the full weight of the federal government behind the small businesses that power our defense industrial base.”
Secretary of War Pete Hegseth said the commission is meant to rebuild domestic production capacity rather than “accepting a hollowed-out industrial base.” “We are restoring the industrial dominance that made the United States the decisive force of the twentieth century and applying it to the threats of this century,” he said.
President Trump is ending America’s dependence on foreign supply chains and our adversaries.
That’s why the @DeptofWar, alongside our partners at @SBAgov, is reestablishing the Smaller War Plants Commission. pic.twitter.com/jKqOtExXmR
— Secretary of War Pete Hegseth (@SecWar) August 25, 2026
Watch Hegseth introduce the Smaller War Plants Commission and the goal of the newly minted department.
The SWPC takes its name from the Smaller War Plants Corporation, a World War II-era SBA predecessor that helped small manufacturers secure financing, contracts and technical support; its authorities were ultimately folded into the SBA in 1953 after flowing through successor agencies.
Under the new framework, the agencies plan to build an inventory of small business production capacity through the Civil Reserve Manufacturing Network, form joint teams to remove regulatory bottlenecks, and report periodically to President Trump on industrial readiness and supply chain gaps.
On financing, the SBA will prioritize defense-critical sectors for its lending, capital investment and contracting programs. Named focus areas include munitions and components, drones and one-way attack systems, microelectronics, strategic and critical minerals, shipbuilding and repair components, sensors, batteries, castings and forgings and textiles.
Eligible manufacturers will also gain access to the SBA’s Made in America Loan Guarantee, delivered through its International Trade Loan program, which carries a 90 percent federal guarantee, above the 75 percent standard under the agency’s flagship 7(a) loan program. The guarantee can be used to finance equipment purchases, facility modernization, inventory and domestic capacity expansion.
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