Innovate UK, part of UK Research and Innovation (UKRI), is offering loans to micro, small and medium sized enterprises (SMEs). Innovate UK innovation loans are for highly innovative late stage research and development (R&D) projects with the best potential for the future. There must be a clear route to commercialisation and economic impact.

Note: read all the instructions carefully as changes have been introduced to the Innovation Loans programme. This is to give businesses more flexibility to deliver both R&D and pre-commercial activities as well as increasing the maximum amount of the innovation loan and these are described further down in this section.

Your project must lead to innovative new products, processes or services that are significantly ahead of others currently available, or propose an innovative use of existing products, processes or services. It can also involve a new or innovative business model.

Your project must focus on at least one of the following six Industrial Strategy Sectors:

  1. Advanced Manufacturing
  2. Clean Energy
  3. Creative Industries: Encompasses advertising and marketing, film and TV, video games, music, performing and visual arts
  4. Defence
  5. Digital and Technologies (includes artificial intelligence, engineering biology, advanced connectivity technologies, quantum technologies, semiconductors, and cybersecurity)
  6. Life Sciences

Note: Financial Services, and Professional and Business Services sectors, are not in scope for Innovation Loans.

You must be able to show that you:

  • need public funding
  • can cover interest payments
  • will be able to repay the loan on time

This is an Expression of Interest (EOI) for an Innovation Loan. If your EOI is approved, you will be invited to submit a full application.

To receive an innovation loan for a new project you must:

  • be a UK registered micro, small or medium sized enterprise (SME)
  • carry out your project from or in the UK
  • intend to exploit the results from or in the UK
  • give evidence that your business is suitable to take on a loan

We will evaluate whether your business is suitable to receive an offer of a loan for your project.

Individuals, large companies, not for profits, charities, academic institutions, and research organisations are not eligible for innovation loans.

Only single businesses can receive loans, so collaboration with other organisations cannot be funded in this competition.

If you are successful in this Expression of Interest competition you will be invited to apply to the full stage competition where you can apply for a loan of between £100,000 and £5 million to fund your project.

Projects can last up to five years, including both the R&D and pre-commercialisation phases. Projects are expected to start from 1 December 2026. Your exact project start date and first innovation loan drawdown will depend on the timing of the final credit committee decision and completion of loan documentation.

Find out more and apply. There is no submission deadline at present; applications will be assessed when received and successful applicants will be invited to make a full loan application.