Innovation Loans

Innovation Loans Round 23

Funds United Kingdom late-stage ventures with long-term patient government loans.

⚠ This may reflect a past cycle — verify the current call on the funder's site.

Innovation Loans Round 23 is a patient-capital instrument administered by Innovate UK, part of UK Research and Innovation, designed to support UK SMEs undertaking late-stage R&D or commercialisation projects where grant funding alone is insufficient and commercial lending is unavailable. Round 23 carried a total pool of GBP 25 million and closed on 22 October 2025 at 11:00am; subsequent rounds are anticipated given the programme's rolling nature. The instrument positions itself between grant support and commercial debt, filling a structural gap in the UK innovation finance market.

Loans are available from GBP 100,000 to GBP 5,000,000 per project and can cover up to 100% of eligible project costs, removing any mandatory co-funding requirement. During the project phase, interest accrues at 3.7% per annum on drawn amounts, plus 3.7% per annum deferred interest; repayment-phase interest rises to 7.4% per annum on the outstanding balance. The total term is up to seven years, comprising a project phase of up to five years and a repayment phase of up to five years. Only UK-registered micro, small, or medium enterprises are eligible — large companies, nonprofits, universities, and research organisations are excluded. All R&D work must be performed in the UK, and applicants must demonstrate both the ability to afford repayments and that alternative commercial finance has been exhausted.

Applications are submitted through the Innovate UK Innovation Funding Service portal. The key differentiator for strong bids is a credible commercialisation case demonstrating near-market technology, a clear repayment model, and evidence that conventional lending was genuinely unavailable. Organisations should monitor the apply-for-innovation-funding.service.gov.uk portal for Round 24 and future live competitions.