The Innovation Loans Expression of Interest (EOI) supports UK-registered micro, small and medium-sized enterprises (SMEs) in securing loans for close-to-market innovative projects that demonstrate strong commercial potential and significant economic and societal benefits. This competition is run by Innovate UK, part of UK Research and Innovation (UKRI).

Overview

Innovate UK offers innovation loans for highly innovative, late-stage research and development (R&D) projects undertaking experimental development. Applicants must have a clear route to commercialisation and economic impact. The EOI stage is the first step; approved applicants will be invited to submit a full application. Projects may last up to five years, including both R&D and pre-commercialisation phases, and are expected to start from 1 December 2026.

Funding and Benefits

• Loan amount: Between £100,000 and £5 million.
• Project costs: Loans can cover up to 100% of eligible project costs.
• Interest rates: During the project period, interest is charged at 3.7% per annum on drawn amounts, with an additional 3.7% per annum in deferred interest accruing on the principal. During the repayment period, interest is charged at 7.4% per annum on the outstanding balance.
• Loan term: A project period of up to five years plus a repayment period of up to five years, with a total maximum term of seven years.
• Security: Innovate UK expects to take security in the form of a debenture; personal guarantees are not required.
• Eligible pre-commercial costs: Includes labour, market testing, real-world validation, initial tooling or production scale-up, capital usage, and up to 20% working capital supporting commercialisation. (Note: businesses subject to State Aid regulations under the Windsor Framework may have restrictions.)

Eligibility

Applicants must be UK-registered micro, small or medium-sized enterprises (SMEs) that will carry out their project from or in the UK and intend to exploit the results from or in the UK. Only single businesses are eligible; collaborations with other organisations cannot be funded. Individuals, large companies, not-for-profits, charities, academic institutions, and research organisations are not eligible.

Businesses must demonstrate they need public funding, can cover interest payments, and will be able to repay the loan on time. Projects must focus on at least one of the following six Industrial Strategy sectors:

• Advanced Manufacturing
• Clean Energy Industries
• Creative Industries
• Digital and Technologies
• Defence
• Life Sciences

Financial services, and professional and business services sectors are not in scope. Projects must be at the experimental development stage. Applications will not be funded if the business is considered unable to afford repayments, has not demonstrated inability to obtain finance from other sources, or does not align with the Industrial Strategy sectors listed above.

Application Process

The competition is open for Expressions of Interest with no submission deadline; applications can be submitted at any time. The application is split into two sections: Project details and Application questions. Applicants must answer all questions and upload a pitch deck, management accounts, and team structure overview. The application will be assessed by up to three internal assessors based on project quality, financial information, and business suitability. If successful at the EOI stage, applicants will be invited to submit a full application for further evaluation by the Innovate UK Loans Ltd credit committee.

Applicants should read the innovation loans guidance before starting. Previously recorded webinars are available on the Innovate UK Business Connect website.

Deadline and Timeline

• Competition opens: Saturday 6 June 2026.
• Competition closes: There is no submission deadline – this is an open-ended competition.
• Project start: Expected from 1 December 2026, subject to final credit committee decision and loan documentation.

Contact Information

For enquiries or to request reasonable adjustments, contact Innovate UK by email at support@iuk.ukri.org or call 0300 321 4357. Phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays). Applications may be submitted in Welsh.