Defence Innovation Loans
Funds mature defence innovation in the United Kingdom through below-market loans for small and medium enterprises scaling new technologies.
Defence Innovation Loans offer repayable below-market-rate finance for UK SMEs with defence innovations at TRL 6 or above who need capital to reach full commercialisation. Loans are co-delivered by UK Defence Innovation (UKDI/DASA) for innovation assessment and Innovate UK Loans Ltd for credit evaluation and loan administration. The program is currently paused while a new improved service is developed. Last cycle (FY26/27 Cycle 1) closed 14 April 2026. Loan terms: up to £1M, 7.4% p.a. during repayment, 3.7% during project period, project period up to 5 years, repayment period up to 5 years, maximum 7-year overall term. Up to 100% of eligible costs covered.
Each grant below is a distinct funding opportunity with its own eligibility, scope, and deliverables.