Office of Strategic Capital Backs Neros With Loan
The Pentagon's lending arm has conditionally committed up to $450 million to drone maker Neros, Inc. to expand domestic component manufacturing.
Updated on Nov. 2, 2026 in Manufacturing
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The Department of War's Office of Strategic Capital announced a conditional loan commitment of up to $450 million to Neros, Inc., a U.S.-based developer and manufacturer of dual-use small unmanned aircraft systems. The financing will support Neros' expansion of domestic drone component manufacturing capacity.
Why it matters
The investment is intended to support Neros' domestic manufacturing expansion and reduce reliance on foreign-made components. The commitment directly advances Executive Order 14307, Unleashing American Drone Dominance.
The Office of Strategic Capital has conditionally committed up to $450 million, with the loan contingent on Neros meeting financial, legal, technical, investment, and due diligence requirements before financial close. Final terms and the size of the accompanying private capital contribution have not been disclosed.
The players
Office of Strategic Capital
The Department of War's lending arm, which provides financing for strategic defense and dual-use industrial capacity.
Neros, Inc.
A U.S.-based developer and manufacturer of dual-use small unmanned aircraft systems, with a manufacturing facility in Torrance, California.
The details
Neros' manufacturing facility is located in Torrance, California. The conditional commitment specifies additional steps the company must complete before the financing closes, and OSC funding will be paired with private capital to fund the expansion.
Timeline
November 2, 2026: OSC announced the conditional loan commitment to Neros.
Manufacturing Shift
The financing directly advances Executive Order 14307, Unleashing American Drone Dominance, by building domestic drone supply chains. The vertically integrated capacity is projected to supply NDAA-compliant components to other U.S. and allied drone manufacturers.
For U.S. buyers and businesses relying on drones, expanded domestic component supply could over time shift sourcing options away from foreign-made parts. The loan is not yet final, so near-term availability is unchanged.
The takeaway
Federal financing is increasingly being directed toward domestic drone supply chains, a shift that could reshape where critical drone components are built. Watch for the final financial close to confirm how quickly that capacity comes online.
Further reading
Explore more on Manufacturing in the United States.
Source note: This article includes information reported by U.S. Department of War.
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