Aerospace startup JetZero announced that it has closed a senior secured term loan facility of up to $100 million, with proceeds aimed at advancing the development and production of the company’s blended wing aircraft program, which the company estimates will cut fuel burn and emissions by up to 50% relative to conventional tube-and-wing aircraft.
Founded in 2021, California-based JetZero is designing a plane that integrates the wings and fuselage into a single smooth shape, reducing aerodynamic drag, and leading to lower fuel needs, emissions and operating costs. The aircraft will be compatible with sustainable aviation fuel and can also provide benefits including an enhanced passenger experience with larger seats and wider aisles, while also being expected to integrate easily into current airport infrastructure.
The new financing will advance JetZero’s Z4 aircraft program. JetZero said that the Z4, designed for the middle market with capacity for approximately 250 passengers and a range of up to 5,000 nautical miles, is expected to reduce fuel burn and emissions by up to 50% compared with conventional tube-and-wing aircraft at the same passenger capacity. The new aircraft is expected to enter service in the early 2030s, the company added.
The company said that proceeds from the new financing will be used to accelerate technology maturation and manufacturing of Jet1, its full-scale demonstrator aircraft, support the buildout of its U.S. manufacturing and test facilities in Greensboro, North Carolina, as well as provide growth and working capital for its U.S. operations.
Lenders participating in the financing facility included Pinegrove Credit Partners, backed by Brookfield and HRTG Partners, alongside Silicon Valley Bank, a division of First-Citizens Bank.
Craig Caukin, Partner at Pinegrove, said:
“JetZero is moving from demonstration to production, and that transition is where capital structure matters most. We structured this facility around the program’s real milestones. Together with our limited partners, we will be looking to expand the capacity of this facility when the opportunity presents itself.”
JetZero is currently building Jet1 with Scaled Composites, a Northrop Grumman company. The demonstrator was 40% complete as of June 2026, with its first flight scheduled for the fourth quarter of 2027.
In June 2026, JetZero broke ground on Factory1, its Z4 production facility in Greensboro. The company said that it plans to create more than 14,000 jobs in North Carolina over the next decade to support production of the aircraft.
Tom O’Leary, JetZero CEO and co-founder, said:
“Through this facility, we will fund tooling and production facilities in North Carolina, advancing aerospace innovation and reindustrializing America. Not only has the time come to reshape aviation, but the Z4 will lead the way.”
