- SBA and DOW have launched a commission to support small business suppliers
- Framework prioritizes capital access, industrial mapping and regulatory relief
- Explore AI, digital engineering and more at the 2026 Navy Summit tomorrow
The Small Business Administration and the Department of War have established the Smaller War Plants Commission, or SWPC, to strengthen the defense industrial base by expanding small manufacturers’ production capacity, access to capital and regulatory support.
As DOW and SBA work to strengthen the small businesses that make up the defense industrial base, government and industry leaders will gather at the Potomac Officers Club’s 2026 Navy Summit on Aug. 27 — the organization’s final DOW-focused summit of 2026 — to discuss artificial intelligence, digital engineering, autonomous systems, network modernization, shipbuilding and other priorities shaping the future maritime force. Reserve your seat now!
SBA said Tuesday the commission was created through a new memorandum of understanding aimed at directing federal resources behind the small businesses that make up more than 70 percent of the defense industrial base.
What Is the Smaller War Plants Commission?
The Smaller War Plants Commission is a federal coordinating body formed by SBA and DOW to grow the defense industrial base by investing in small business suppliers. The commission takes its name from the World War II-era Smaller War Plants Corporation, an SBA predecessor that helped small manufacturers secure financing, government contracts and technical assistance for military production.
The commission will build a comprehensive inventory of small business production capacity through the Civil Reserve Manufacturing Network, or CRMN, and work alongside the Pentagon to identify and eliminate regulations that slow down small manufacturers. The agencies will prioritize defense-critical sectors, including munitions, drones and one-way attack systems, microelectronics, strategic and critical minerals, shipbuilding components, sensors, batteries, castings and forgings, and textiles, for expanded access to SBA lending, capital-investment, contracting and technical-assistance programs.
Eligible manufacturers can also apply for the Made in America Loan Guarantee through SBA’s International Trade Loan program, which offers a 90 percent federal guarantee to help finance equipment purchases, facility modernization, inventory and domestic capacity expansion.
What Did SBA & DOW Officials Say About the Commission?
SBA Administrator Kelly Loeffler, a 2026 Wash100 awardee, said the commission will help small businesses expand, innovate and hire to deliver Made in America capabilities to the warfighter.
“With the strong leadership of Secretary Pete Hegseth, the most lethal fighting force in the world will be backed by the world’s most nimble industrial base — offering our warfighters an asymmetric advantage, and our nation peace through strength,” Loeffler added.
Secretary of War Pete Hegseth, a two-time Wash100 honoree, said the commission reflects the administration’s commitment to rebuilding the industrial capacity that underpins U.S. military production.
“The Smaller War Plants Commission marks a historic commitment by this Administration to put the full weight of the federal government behind the small businesses powering America’s Arsenal of Freedom,” he stated.
What Will SBA & DOW Do Under the New Framework?
- Mobilize capital and market access. SBA will pair enhanced loan guarantees, up to 90-percent where authorized, with targeted investment and contracting opportunities to help priority manufacturers finance expansion and scale production.
- Map the industrial base. The agencies will use the CRMN to identify manufacturers, production capabilities and supply-chain gaps considered vital to national defense.
- Cut regulatory barriers. Joint teams will identify and remove regulatory and operational obstacles that slow production and limit growth among small manufacturers.
- Report progress to the White House. SBA and DOW will deliver regular updates to President Trump on industrial strength, supply-chain readiness and federal investment in the defense industrial base.
How Does the SWPC Align With Other Initiatives of DOW & SBA?
The Smaller War Plants Commission follows several other actions this year involving the Pentagon and SBA. In July, DOW suspended Cybersecurity Maturity Model Certification Phase II requirements for small defense contractors, a move Loeffler commended as a step to ease compliance costs. In January, Hegseth directed a review of SBA’s 8(a) Business Development Program, citing concerns over fraud and abuse in the program.
SBA has also proposed changes to its small business size standards, which the agency said are intended to simplify eligibility criteria. Separately, the Pentagon launched the Business Operators for National Defense initiative, which embeds private sector executives into the department’s acquisition enterprise.
