Defence Innovation Loan

The Defence and Security Accelerator (DASA) supported by Innovate UK Loans Ltd (Innovate UK) are working together to offer a defence funding competition: the Defence Innovation Loan. This service provides an opportunity for single small and medium-sized enterprises (SMEs) with solutions to defence-themed problems.

To take on a Defence Innovation Loan for a project you must:

• Be a UK registered SME.
• Intend to exploit the results in the UK or overseas to make a significant and positive impact on the UK economy and/or productivity.
• Give evidence that your business is suitable to take on a loan.

Only SMEs are eligible to apply for Defence Innovation Loans; individuals, academic institutions, research organisations, and large companies are not eligible.

Only single businesses can receive innovation loans, so joint applications with other organisations cannot be funded in this competition (subcontractors are allowed).

As part of your application, you will be asked to confirm that you have spoken to a member of the DASA Business Growth and Finance team regarding your innovation, and that they confirmed its suitability for the Defence Innovation Loans competition.

The application must include evidence of:

• A high-quality later-stage R&D project with viable opportunity for growth.
• A suitable team, with strong management and delivery approach to the project.
• A strong defence requirement for the capability.
• A clear route to commercial success and focus on growth or scale up.
• A plan to cover interest payments on a quarterly basis.
• A plan to repay the loan within seven years of contract award.
• Why public funding is required to be able to carry out the project.
• Why you are unable to fund the project from your own resources or other forms of private-sector funding.
• Development of a new and innovative product, process, or service that can provide a competitive advantage over anything similar in the field.
• A clear, evidence-based plan to deliver significant economic impact, return on investment (ROI) and growth through commercialisation, as soon as possible after project completion.
• A drawdown schedule that adheres to the terms of the loan (i.e., up to three years availability period), and that matches the information provided to Innovate UK.