Accelerating Growth: The Role of Innovate UK Innovation Loans

Innovate UK is extending a generous offer of up to £25 million in loans tailored for micro, small, and medium-sized enterprises (SMEs), aiming to facilitate the transformation of innovative ideas into thriving commercial ventures. These Innovate UK innovation loans specifically target late-stage research and development projects exhibiting exceptional potential for the future. The overarching goal is to catalyze substantial economic advancements, fostering substantial and enduring business expansion.

Focusing on key themes such as Net-Zero, Health and Wellbeing, and Next Generation Digital Technologies, these loans are strategically designed to propel advancements in these critical areas.

Funding Criteria

Your proposal should encompass:

• A clearly articulated and captivating innovative concept.
• A robust and feasible business plan addressing market potential and needs, supported by evidence.
• A skilled and experienced team capable of successfully executing and completing the project within the designated timeframe, and driving its outcomes forward.
• Identification and mitigation plans for all primary project and business risks.
• Financial plans and timelines demonstrating value for money and the ability to repay the loan.
• Justification for the inability to fund the project internally or through other public or private sector sources.
• An evidence-based strategy for delivering significant economic impact, return on investment (ROI), and growth through commercialization post-project completion.

Project Scope

Your project may encompass:

• Prototyping
• Demonstrating
• Piloting
• Testing
• Validation

These activities can be conducted in environments simulating real-life operating conditions.

Evaluation Criteria

Your application will be assessed based on the quality of your project proposal and the suitability of your business to manage a loan.

Specific Themes

Net Zero:

• Energy
• Industrial processes and material usage impact
• Agriculture, food, and emissions sources
• Capital intensity

Health and Wellbeing:

• Addressing ill health
• Enhancing wellbeing
• Diet and food 

Next Generation Digital Technologies:

• Advanced materials and manufacturing
• Artificial intelligence, digital, and advanced computing
• Bioinformatics and genomics
• Engineering biology
• Electronics, photonics, and quantum technologies
• Energy and environmental technologies
• Robotics and smart machines

Eligibility

To qualify for an innovation loan, your business must:

• Be a UK-registered micro, small, or medium-sized enterprise (SME).
• Conduct the project in or from the UK.
• Intend to exploit the results in or from the UK.
• Provide evidence of the business’s suitability for loan acquisition.

Ineligibility

Individuals, large companies, not-for-profits, charities, academic institutions, and research organizations are ineligible for innovation loans. 

Funding Terms

Innovation loans will:

• Be available for up to 3 years during the project’s execution phase (availability period), with a 3.7% annual interest rate on borrowed amounts. Additional interest at 3.7% will accrue and defer until the repayment period.

• Extend up to 2 additional years post-availability period until the first commercial sales, during which no further drawdowns are allowed. No repayments are due, but interest at 3.7% per annum will apply, with additional interest deferred until the repayment period.

• Be repayable over a maximum of 5 years post-availability and extension periods, with quarterly repayments including borrowed amounts and accrued interest at 7.4% per annum.

Secure Your Future!

Fund Name: Innovate UK innovation loans future economy: round 13

Project Length: Up to 5 years

Project Value: £100k – £2m

Deadline: 06.03.2024