- SBA and DOW have launched a commission to support small business suppliers
- Framework prioritizes access to capital, industry mapping and regulatory relief
- Explore AI, digital engineering, and more in the Navy Summit 2026 tomorrow
The Small Business Administration and the War Department have established the Smaller Warfare Plants Commission, or SWPC, to strengthen the defense industrial base expanding the production capacity of small manufacturers, their 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. Navy Summit 2026 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 that will shape the future maritime force. Reserve your seat now!
The SBA said Tuesday that the commission was created through a new memorandum of understanding intended to direct federal resources behind small businesses that represent 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, a predecessor of the SBA that helped small manufacturers secure financinggovernment contracts and technical assistance for military production.
The commission will build a complete inventory of small business production capacity through the Civil Reserve Manufacturing Network, or CRMN, and work together with the Pentagon to identify and eliminate regulations that hold back small manufacturers. Agencies will prioritize critical defense sectorsincluding munitions, drones and one-way attack systems, microelectronics, strategic and critical minerals, shipbuilding components, sensors, batteries, castings and forgings, and textiles, for greater access to SBA loans, capital investments, contracting and technical assistance programs.
Eligible manufacturers can also apply for Made in America Loan Guarantee through the SBA 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 and DOW officials say about the Commission?
SBA Administrator Kelly Loefflera 2026 Wash100 awardee, said the commission will help small businesses expand, innovate and hire to bring Made in America capabilities to the warfighter.
“With the strong leadership of Secretary Pete Hegseth, the world’s most lethal fighting force will be backed by the world’s most agile industrial base, giving our warfighters an asymmetric advantage and our nation peace through strength,” Loeffler added.
secretary of war Pete HegsethA two-time Wash100 honoree, he said the commission reflects the administration’s commitment to rebuilding the industrial capacity that underpins American military production.
“The Smaller Warfare Plants Commission marks a historic commitment by this Administration to put the full weight of the federal government behind the small businesses that power America’s Arsenal of Freedom,” he said.
What will the SBA and DOW do under the new framework?
- Mobilize capital and access to markets. The SBA will combine enhanced loan guarantees, up to 90 percent when authorized, with targeted investments and contracting opportunities to help priority manufacturers finance expansion and scale production.
- Map the industrial base. Agencies will use the CRMN to identify manufacturers, production capabilities and supply chain gaps that are considered vital to national defense.
- Reduce regulatory barriers. The 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. The SBA and DOW will provide 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 DOW and SBA initiatives?
The Smaller Warfare Plants Commission follows several other actions this year involving the Pentagon and the SBA. In July, DOW suspended Cybersecurity Maturity Model Certification Phase II requirements for small defense contractors, a move Loeffler praised as a step to ease compliance costs. In January, Hegseth led a review of the SBA 8(a) Business Development Programciting concerns about fraud and abuse in the program.
The SBA has also proposed changes to its small business size standardswhich according to the agency aim to simplify the eligibility criteria. On the other hand, the Pentagon launched the Business Operators Initiative for National Defensethat brings private sector executives into the department’s procurement firm.