WEBVTT 00:01.710 --> 00:03.710 thank you so much , john appreciate 00:03.710 --> 00:05.932 that . It's great to be home . I'm from 00:05.932 --> 00:08.099 the la Crescenta Valley . So it's good 00:08.099 --> 00:10.210 to just be in this beautiful mountain 00:10.210 --> 00:11.932 scape . But uh appreciate your 00:11.932 --> 00:14.043 leadership at the Reagan Presidential 00:14.043 --> 00:15.988 Foundation and Institute . It's my 00:15.988 --> 00:18.266 honor to be joined by Secretary Austin . 00:18.266 --> 00:20.543 I greatly appreciate the D . O . D . S . 00:20.543 --> 00:22.766 Partnership to propel and support small 00:22.766 --> 00:24.988 businesses and entrepreneurship . And I 00:24.988 --> 00:26.932 also want to thank under Secretary 00:26.932 --> 00:28.877 Heidi shoe , who's here as well as 00:28.877 --> 00:31.099 Jason Roth G as well . Oh there he is . 00:31.099 --> 00:33.210 Um and you know , who have worked and 00:33.210 --> 00:35.377 partnered with my team uh including my 00:35.377 --> 00:37.377 associate administrator who is here 00:37.377 --> 00:39.377 today bailey degrees , she leads my 00:39.377 --> 00:41.599 Office of Investment and Innovation and 00:41.599 --> 00:43.432 she , alongside Jason has been a 00:43.432 --> 00:45.488 critical architect of the initiative 00:45.488 --> 00:47.432 today . Uh you know , I'm Isabella 00:47.432 --> 00:49.432 casillas Guzman as I said , I'm the 00:49.432 --> 00:51.543 27th administrator of the S . B . A . 00:51.543 --> 00:53.432 And I've spent my life with small 00:53.432 --> 00:53.280 businesses and startups starting from a 00:53.280 --> 00:55.391 family owned business when I was very 00:55.391 --> 00:57.300 young uh to advising founders and 00:57.300 --> 00:59.244 starting my own businesses and now 00:59.244 --> 01:01.590 serving as the voice of small business 01:01.590 --> 01:03.701 and the president's cabinet . And I'm 01:03.701 --> 01:05.923 proud to lead the S . P . A . Which has 01:05.923 --> 01:08.750 uh was founded over 70 years ago in the 01:08.750 --> 01:11.800 Eisenhower administration to ensure 01:11.800 --> 01:14.640 competition and innovation In the US 01:14.640 --> 01:16.473 economy through entrepreneurship 01:16.473 --> 01:18.473 through small business . We are the 01:18.473 --> 01:20.362 federal agency that propels small 01:20.362 --> 01:22.584 business growth each year with over $40 01:22.584 --> 01:24.720 billion dollars in capital outlays as 01:24.720 --> 01:26.442 well as connecting hundreds of 01:26.442 --> 01:28.276 thousands of small businesses to 01:28.280 --> 01:30.340 technical assistance resources 01:30.340 --> 01:33.020 counseling and growth opportunities 01:33.020 --> 01:34.798 through contracts and trade and 01:34.798 --> 01:37.290 digitization . We also scale when 01:37.290 --> 01:39.490 disasters happen to help individuals 01:39.500 --> 01:42.810 businesses and nonprofits recover from 01:42.810 --> 01:45.150 a natural disaster most most recently , 01:45.150 --> 01:47.300 Covid . And one of the less known but 01:47.300 --> 01:49.880 highly impactful and longstanding 01:49.880 --> 01:52.230 programs of the agency is the poor 01:52.240 --> 01:54.430 portfolio of capital , both debt and 01:54.440 --> 01:57.410 equity investment as well as innovation . 01:57.690 --> 02:00.490 We power , for example , the 11 agency 02:00.490 --> 02:02.823 small business innovation research or S . 02:02.823 --> 02:05.046 B . I . R . Program that provides about 02:05.046 --> 02:07.170 $4 billion in non dilutive capital 02:07.180 --> 02:09.600 annually to seed as well as 02:09.600 --> 02:11.640 commercialized technology and 02:11.640 --> 02:13.862 scientific advancement . Uh This is the 02:13.862 --> 02:16.060 cornerstone of our current and ongoing 02:16.060 --> 02:18.171 partnership with D . O . D . Uh since 02:18.171 --> 02:20.420 it was founded over 40 years ago . And 02:20.420 --> 02:23.700 we also license and fund 300 small 02:23.700 --> 02:26.033 business investment companies S . P . I . 02:26.033 --> 02:27.811 C . S . As we call them , which 02:27.811 --> 02:29.867 currently manage over $37 billion in 02:29.867 --> 02:32.110 both S . B . A . Federal as well as 02:32.120 --> 02:34.400 private capital in the marketplace . 02:34.410 --> 02:36.466 And the program is the basis for the 02:36.466 --> 02:38.743 expansion of our partnership today . R . 02:38.743 --> 02:40.910 S . P . I . C . Program was created 65 02:40.910 --> 02:42.970 years ago to fill what the Federal 02:42.970 --> 02:45.060 Reserve identified as a market gap . 02:45.060 --> 02:47.150 And this is leveraging federal and 02:47.150 --> 02:49.150 private capital to crowd investment 02:49.150 --> 02:51.372 into early stage companies so that they 02:51.372 --> 02:53.150 can scale and succeed in the 02:53.150 --> 02:55.317 marketplace and over the decades . The 02:55.317 --> 02:56.872 S . P . I . C . Program has 02:56.872 --> 02:59.240 continuously delivered on sbs mission 02:59.440 --> 03:01.551 with investments that helped incubate 03:01.551 --> 03:03.620 and propel some of our most beloved 03:03.620 --> 03:05.676 brands and businesses in the world , 03:05.676 --> 03:07.731 including some of the first movers , 03:07.731 --> 03:10.850 Apple Tesla intel and many others you 03:10.850 --> 03:13.360 know and it has powered that the start 03:13.370 --> 03:15.540 the scale and success of critical 03:15.540 --> 03:17.820 technology verticals as well such as 03:17.820 --> 03:19.931 semiconductors which of course are at 03:19.931 --> 03:22.098 the heart of our nation's economic and 03:22.098 --> 03:24.300 military strength today and under the 03:24.300 --> 03:27.050 biden Harris administration we intend 03:27.050 --> 03:29.240 to do more to strengthen this program 03:29.240 --> 03:31.680 to propel innovation and production in 03:31.680 --> 03:34.130 this country . We know from experience 03:34.130 --> 03:35.963 that some of the biggest gaps in 03:35.963 --> 03:38.400 private investment do appear in capital 03:38.400 --> 03:40.540 intensive industries with those long 03:40.540 --> 03:43.950 development timelines and which is why 03:43.950 --> 03:46.172 the S . B . A . Is transforming the S . 03:46.172 --> 03:48.228 B . I . C . Program as it's known so 03:48.228 --> 03:50.283 that it can incentivize that patient 03:50.283 --> 03:52.617 capital which is necessary in R . And D . 03:52.617 --> 03:55.440 Heavy industries including the defense 03:55.440 --> 03:57.760 industry . And we've proposed a new 03:57.760 --> 03:59.538 government guaranteed financial 03:59.538 --> 04:01.204 instrument in addition to our 04:01.204 --> 04:03.520 traditional debenture S . P . I . C . 04:03.530 --> 04:05.730 Uh investment . We are going to 04:06.000 --> 04:08.167 implement this new instrument which is 04:08.167 --> 04:10.000 in a cruel S . P . I . C . Which 04:10.000 --> 04:12.056 basically is going to align with the 04:12.056 --> 04:14.820 cash flow needs of these industries 04:14.820 --> 04:17.590 that have long durations on frontier 04:17.590 --> 04:19.757 cutting edge technology . We know it's 04:19.757 --> 04:21.646 needed the federal government has 04:21.646 --> 04:23.757 provided a springboard like this many 04:23.757 --> 04:25.923 times in the past , delivering capital 04:25.923 --> 04:27.646 and research funding to launch 04:27.646 --> 04:29.701 transformative innovation generation 04:29.701 --> 04:32.045 after generation . So today I am proud 04:32.045 --> 04:34.395 to begin a new , groundbreaking chapter 04:34.395 --> 04:36.506 of our long standing partnership with 04:36.506 --> 04:38.506 the Department of Defense . And I'm 04:38.506 --> 04:40.562 especially grateful to be here today 04:40.562 --> 04:42.451 with the great leader who I enjoy 04:42.451 --> 04:44.673 partnering with , who has dedicated his 04:44.673 --> 04:46.839 career to our nation's defense and who 04:46.839 --> 04:48.895 gets the need for small business and 04:48.895 --> 04:50.951 entrepreneurship to support economic 04:50.951 --> 04:53.117 prosperity for all . It was clear from 04:53.117 --> 04:53.050 the very first time I met him , he has 04:53.050 --> 04:55.161 a four decade long career in the army 04:55.161 --> 04:57.050 with leadership and distinguished 04:57.050 --> 04:59.106 honors . You all know his incredible 04:59.106 --> 05:01.217 distinguished career , but as well as 05:01.217 --> 05:03.328 valuable experience in private sector 05:03.328 --> 05:05.494 governance . And please , I would love 05:05.494 --> 05:05.440 you to welcome a leader with a giant 05:05.440 --> 05:07.496 impact in the President's cabinet as 05:07.496 --> 05:09.551 well . Thank you so much . Secretary 05:09.551 --> 05:10.551 Lloyd Austin . 05:15.730 --> 05:17.508 Yes , I know this microphone is 05:17.508 --> 05:19.563 adjusted for normal people , but I'm 05:19.563 --> 05:22.690 gonna have to make an adjustment there 05:22.700 --> 05:25.620 and Isabelle thanks so much for that 05:25.630 --> 05:28.720 very kind introduction . Uh good 05:28.720 --> 05:30.776 morning everybody and welcome . It's 05:30.776 --> 05:33.190 great to see three of my 05:33.200 --> 05:35.670 undersecretaries joining us today , 05:35.680 --> 05:39.570 Heidi Xu who is uh largely responsible 05:39.570 --> 05:41.737 for a lot of the energy that went into 05:41.737 --> 05:44.180 our efforts here to build a plant kept 05:44.180 --> 05:46.770 us uh between the yellow line and the 05:46.770 --> 05:48.881 white line in the road there . And so 05:48.881 --> 05:50.881 Bill , thanks for everything you've 05:50.881 --> 05:52.881 done and gil you do so much to make 05:52.881 --> 05:54.937 sure that we have the right people , 05:54.937 --> 05:56.826 the right talent lined up uh , to 05:56.826 --> 05:59.330 support us . Um , and I want to thank 05:59.330 --> 06:02.530 the the administrator for all that she 06:02.530 --> 06:05.310 does to promote and support american 06:05.310 --> 06:08.010 small businesses . Uh and I know that 06:08.010 --> 06:10.010 this work is personal to you as you 06:10.010 --> 06:12.430 said , uh you are the daughter daughter 06:12.430 --> 06:14.486 of a small business owner and you've 06:14.486 --> 06:16.652 been doing this for some time and it's 06:16.652 --> 06:18.486 great to have somebody with your 06:18.486 --> 06:20.208 experience , your heart , your 06:20.208 --> 06:22.430 dedication lined up against this very , 06:22.430 --> 06:24.597 very important effort . But under your 06:24.597 --> 06:26.208 leadership , S . B . A . Has 06:26.208 --> 06:28.880 distributed hundreds of billions as you 06:28.880 --> 06:30.770 pointed out in financial relief , 06:30.770 --> 06:32.770 helping small businesses keep their 06:32.770 --> 06:34.826 doors open throughout the pandemic . 06:35.270 --> 06:36.826 You know the small business 06:36.826 --> 06:38.881 administration and the Department of 06:38.881 --> 06:41.390 Defense , as Isabel said have worked 06:41.390 --> 06:43.640 together for decades to provide capital 06:43.640 --> 06:47.100 for small businesses . And cooperation 06:47.100 --> 06:49.370 with America's vibrant business sector 06:49.370 --> 06:52.170 has always helped us uh to maintain 06:52.170 --> 06:54.440 endure our enduring technological edge 06:54.440 --> 06:56.662 which is the foundation of our military 06:56.662 --> 06:59.890 edge . America's businesses , 06:59.900 --> 07:02.130 research institutions and private 07:02.130 --> 07:04.330 capital providers have long worked 07:04.340 --> 07:07.100 shoulder to shoulder to tackle 07:07.900 --> 07:10.810 and tough problems and deliver for our 07:10.810 --> 07:13.520 war fighters today , the Department of 07:13.520 --> 07:15.680 Defense depends on private capital to 07:15.680 --> 07:18.570 develop and commercialize critical 07:18.570 --> 07:20.410 technologies for our troops . 07:21.070 --> 07:24.140 Unfortunately , private markets don't 07:24.150 --> 07:27.500 always have incentives to invest in 07:27.500 --> 07:30.180 these technologies which often require 07:30.190 --> 07:33.270 longer term investments and our friends 07:33.270 --> 07:36.390 in private capital cannot respond alone 07:36.400 --> 07:39.520 to major shifts like global supply 07:39.520 --> 07:42.480 chain disruptions . And so without 07:42.490 --> 07:45.650 access to capital for the time that it 07:45.650 --> 07:48.400 takes to develop key new technologies , 07:48.410 --> 07:51.310 those innovations could die on the vine 07:51.320 --> 07:53.340 or our competitors could get there 07:53.340 --> 07:56.540 first . So we're looking for new and 07:56.540 --> 07:58.873 creative approaches to sharpen our edge . 07:59.530 --> 08:01.474 And that's why earlier this week I 08:01.474 --> 08:03.141 announced the creation of the 08:03.141 --> 08:04.974 department's Office of Strategic 08:04.974 --> 08:08.030 Capital . This important office will 08:08.030 --> 08:09.974 partner with the private sector to 08:09.974 --> 08:11.863 increase the amount of investment 08:11.863 --> 08:13.670 capital available to critical 08:13.670 --> 08:16.580 technology companies that otherwise 08:16.590 --> 08:19.500 wouldn't get the necessary resources . 08:20.150 --> 08:22.610 And so I'm delighted that osc s first 08:22.620 --> 08:26.420 official activity will be a partnership 08:26.430 --> 08:28.597 with the Small business administration 08:29.180 --> 08:31.470 and today we're signing a declaration 08:31.480 --> 08:34.370 of intent to create the small business 08:34.380 --> 08:36.300 investment company Critical 08:36.300 --> 08:38.940 technologies Initiative . And this is a 08:38.940 --> 08:41.670 major advancement in the relationship 08:41.680 --> 08:44.970 between D . O . D . And S . B . A . It 08:44.970 --> 08:46.748 will allow our agencies to work 08:46.748 --> 08:49.510 together to build trusted investment 08:49.510 --> 08:53.410 funds to align and scale private 08:53.410 --> 08:56.410 capital in support of national security 08:56.410 --> 08:59.500 priorities . This will help secure the 08:59.510 --> 09:01.780 secure funding for critical areas for 09:01.780 --> 09:04.290 national defense and ensure that our 09:04.290 --> 09:06.510 war fighters get the capabilities they 09:06.510 --> 09:08.550 need before they need them . 09:10.320 --> 09:12.460 As you heard , uh the administrators 09:12.460 --> 09:15.040 say , pioneering companies like Apple 09:15.040 --> 09:17.710 and Cray Research and Sun Microsystems 09:17.720 --> 09:20.470 all once benefited from early stage 09:20.470 --> 09:23.710 investments by funds supported by S . B . 09:23.710 --> 09:25.710 A . S . Small business investment 09:25.710 --> 09:29.680 company program . Now working with S . 09:29.680 --> 09:32.230 B . A . The Office of Strategic Capital 09:32.230 --> 09:34.490 will have access to this powerful tool 09:34.490 --> 09:37.850 of innovation . And this partnership is 09:37.850 --> 09:40.020 the first of several new initiatives 09:40.020 --> 09:41.840 that will focus on investing in 09:41.840 --> 09:44.930 America's technological advantage . The . 09:44.930 --> 09:46.708 Department has a long and proud 09:46.708 --> 09:48.980 tradition of co op cooperation with the 09:48.980 --> 09:51.200 private sector . But you know , we 09:51.200 --> 09:53.790 can't take that for granted . So we're 09:53.790 --> 09:55.846 going to continue to find innovative 09:55.846 --> 09:58.290 ways to explore the next frontier of 09:58.290 --> 10:02.000 critical technology in the service of U . 10:02.000 --> 10:05.570 S . National security . And we can't do 10:05.570 --> 10:07.681 this without our friends and partners 10:07.681 --> 10:09.959 in the private sector and across the U . 10:09.959 --> 10:12.770 S . Government including the small 10:12.770 --> 10:16.000 business administration . So thank you 10:16.000 --> 10:17.944 for all that you do to protect our 10:17.944 --> 10:20.560 troops and to keep this country safe . 10:20.570 --> 10:22.681 And I look forward to continuing this 10:22.681 --> 10:26.110 great partnership . So let's get about 10:26.110 --> 10:28.277 the business of making this official . 11:31.490 --> 11:34.570 Thanks Administrator , proud to be on 11:34.570 --> 11:35.770 the team with you . 11:38.960 --> 11:41.270 Okay , thanks everybody . 11:48.390 --> 11:48.940 Okay , 11:51.900 --> 11:54.050 thanks for coming .