The Pentagon’s new Office of Strategic Capital will employ loans, guarantees and other financial tools not typically used by the military. The Pentagon has established a new unit to lure private funding for technology deemed critical to national security, citing concern over China’s military advances. On Thursday, the Defense Department announced the creation of the Office of Strategic Capital, which will seek to employ loans, guarantees and other financial tools not typically used by the U.S. military, which relies mainly on contracts and grants.