Defence Innovation Loans 2023/24

Funding to help defence innovators get closer towards commercialisation

The Defence and Security Accelerator (DASA) and Innovate UK Loans are offering small and medium-sized businesses a chance to apply for affordable funds to help convert their defence innovations into viable business propositions.

Loans from £100,000 to £2 million are available with a below market interest rate of 7.4% per annum. The loans can be used to cover up to 100% of eligible project costs to aid the commercialisation of the solution. 

The Defence Innovation Loans support innovative ideas to improve the UK defence. To be eligible, your innovation must be mature, at technology readiness level (TRL) 6 or above, to ensure the solution can be commercialised within the time scale of the loan.

There must also be clear evidence of a defence need for the innovative solution.

Who can apply?

To apply for a Defence Innovation Loan, you must:

• be a UK registered SME
• intend to exploit the results in the UK or overseas to make a significant and positive impact on the UK economy and/or productivity
• give 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.

How to apply

The Defence Innovation Loans run on cycle-based assessment periods but remain open all year round. A list of the cycle closing dates for financial year 2023/24 is shown below. Applications must be submitted through the DASA Submission Service by midday on the closing date given.

Assessment starts the day after the competition cycle closing date, subject to eligibility checks. 

Read the full Defence Innovation Loans document and submit an application.

Potential applicants can watch a recorded briefing webinar to find out more about the competition process.

First published 29 August 2023