Innovate UK Innovation Loans Round 14
Innovate UK is extending loans of up to £25 million to micro, small, and medium-sized enterprises (SMEs). These loans are earmarked for highly innovative late-stage research and development (R&D) projects with promising prospects for the future. There must be a clear path to commercialisation and economic impact.
Applicants need to demonstrate that they:
- Require public funding
- Can manage interest payments
- Will meet loan repayment deadlines
Details of Funding
Proposals must exhibit:
- A clearly articulated and compelling innovative concept
- A sturdy and achievable business plan that addresses and provides evidence of market potential and requirements
- A team equipped with the essential skills and experience to successfully execute and advance the project on time, as well as take the outcomes forward
- Awareness of all primary risks the project and business may encounter, along with practical plans to manage, mitigate, and minimise their impact
- Solid, pragmatic financial plans and timelines that offer good value for money and demonstrate the ability to repay the loan
- Reasons for the unfeasibility of funding the project through internal resources or other forms of public or private sector funding
- A clear, evidence-based strategy for delivering substantial economic impact, return on investment (ROI), and growth through commercialisation post-project completion
Eligible project activities encompass:
- Prototyping
- Demonstrating
- Piloting
- Testing
- Validation
These activities may take place in settings mirroring real-life operational conditions.
Applications will undergo evaluation by Innovate UK based on the quality of the project proposal and the suitability of the business for loan acquisition.
Specific themes include:
- Net Zero
- Health and Wellbeing
- Next-generation digital technologies and their respective technology families
Eligibility criteria stipulate that to qualify for an innovation loan:
- The applicant must be a UK-registered micro, small, or medium-sized enterprise (SME)
- The project must be conducted in or from the UK, with an intention to utilise the results within the UK
- Evidence must be provided demonstrating the suitability of the business for loan acceptance
- Individuals, large corporations, not-for-profits, charities, academic institutions, and research organisations are ineligible for innovation loans.
Regarding funding:
Innovation loans will be available for up to three years when the project is underway, but the exploitation phase has not yet commenced (referred to as the ‘availability period’). Borrowings can occur in instalments (‘drawdowns’) during this period, with interest set at 3.7% per annum, compounded and deferred until the repayment period.
The loan can be extended until the first commercial sales resulting from the project, with a maximum extension of two years beyond the availability period (termed the ‘extension period’). No further drawdowns are permitted during this time. Repayments are not required during the extension period, but interest is payable at 3.7% per annum, compounded and deferred until the repayment period.
Repayment of the loan, including accrued and deferred interest from both the availability and extension periods, is spread over a maximum of five years (termed the ‘repayment period’), with quarterly instalments. Interest is charged at 7.4% per annum on the outstanding loan amount.
Explore Grant Opportunities with Expert Guidance!
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