The Defence and Security Accelerator (DASA), with support from Innovate UK Loans, has announced the latest cycle dates for the Defence Innovation Loans service for small to medium-sized enterprises (SMEs).
The service provides opportunities for SMEs with defence-based projects to apply for loans of between £100,000 and £1 million. These loans are offered below the market interest rate at 7.4% per annum. The loan can cover the entire cost of the commercialisation of a solution.
The Defence Innovation Loans were introduced in 2021 to “build the business behind the innovation.” On the back of the loans, 8 companies have managed to secure a combined total of £6 million. The loans have led to businesses attracting further private investment (totalling up to £19 million) and 84 jobs have been created on the back of the loans.
The eligibility criteria for Defence Innovation Loans are:
Must be a UK-registered SME
The recipient must intend to exploit the results in the UK or overseas to make a significant and positive impact on the UK economy and / or productivity.
Must provide 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.
If this sounds like it might be of interest for your business, then you can find out more about the eligibility criteria and the loans process here.
The funding is only available for fairly well-developed products and services to ensure that the solution can be commercialised within the time scale of the Defence Innovation loan. The guidance advises it should be Technology Readiness Level 6: Technology model or prototype demonstration in a relevant environment, in the guidelines.
If these loans look useful for your SME, you can apply for Defence Innovation Loans throughout cycles in the year. The current cycle closes 10 December 2024. Future cycle dates and more information on how to apply can be found here.
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