Innovate UK innovation loans: Round 22

UK registered businesses can apply for loans for close to market innovative projects with strong commercial potential. They must significantly improve the UK economy and drive societal benefit.

Opportunity Details

When

Registration Opens

10/07/2025 00:00

Registration Closes

27/08/2025 11:00

Award

Loans can be between £100,000 and £5 million. You can get a loan of up to 100% of your eligible project costs, with interest rates from 3.7% to 7.4% depending on repayment stage.

Organisation

Innovate UK

Find out more and apply

Due to technical error this competition will open on 10th July. We apologise for any inconvenience caused.

Innovate UK, part of UK Research and Innovation is offering loans to micro, small and medium sized enterprises (SME). 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 one or more of the future economy areas included in the Innovate UK plan for action.

You must be able to show that you:

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

The funding available will be allocated across a series of competitions, with the next round opening on the day the previous round closes:

  • round 22 (this round) will open on 10th July 2025 and will close on 27 August 2025
  • round 23 will open on 28 August 2025 and will close on 22 October 2025
  • 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

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

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

    We encourage innovation involving communities that are typically under represented including:

    • from regions that have historically accessed lower levels of investment (outside London, Oxford and Cambridge)
    • ethnic minority groups
    • women and other marginalised genders
    • people with disabilities
    • people with non-traditional education backgrounds

    We particularly welcome applications from businesses from these communities.

    Your business can only submit one application per round of this competition.

    You cannot submit an application in this competition at the same time as submitting an application in any other innovation loans or DASA defence innovation loans competition.

  • We welcome and encourage applications from people of all backgrounds and are committed to making our application process accessible to everyone. This includes making reasonable adjustments, for people who have a disability or a long term condition and face barriers applying to us.

    You can contact us at any time to ask for guidance.

    We recommend you contact us at least 15 working days before this competition’s closing date to allow us to put the most suitable support in place. The support we can provide may be limited if you contact us close to the competition deadline.

    You can contact Innovate UK by email or call 0300 321 4357. Our phone lines are open from 9am to 12pm and 2pm to 5pm UK time, Monday to Friday (excluding bank holidays).

  • You can apply for a loan of between £100,000 and £5 million to fund your project’s eligible costs.

    Projects can last up to five years, including both the R&D and pre-commercialisation phases. Projects in round 22 are expected to start by 1 January 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.

  • 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.

    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 demonstrate:

    • a clearly expressed and compelling innovative idea
    • a robust and deliverable business plan that addresses and shows evidence of market potential and needs
    • a team with the necessary skills and experience to run and complete the project successfully and on time, and take the outputs forward
    • awareness of all the main risks the project and business will face, with realistic plans to manage, mitigate and minimise the impact of each of these
    • sound, practical financial plans and timelines that represent good value for money and ability to repay the loan
    • why you are unable to fund the project from your own resources or other forms of public or private sector funding
    • a clear, evidence based plan to deliver significant economic impact, return on investment (ROI) and growth through commercialisation, as soon as possible after project completion

    Your project can include:

    • prototyping
    • demonstrating
    • piloting
    • testing
    • validation

    These can be in environments that represent real life operating conditions.

  • Your project must focus on one or more of the following themes or sub-themes:

    Net Zero

    • energy
    • impact of industrial processes and use of materials
    • agriculture and food and other sources of emissions
    • capital intensity

    Health and wellbeing

    • tackling ill health
    • enhancing wellbeing
    • diet and food

    Next generation digital technologies

    Technology families

    • advanced materials and manufacturing
    • artificial intelligence digital and advanced computing
    • bioinformatics and genomics
    • engineering biology
    • electronics, photonics and quantum technologies
    • energy and environment technologies
    • robotics and smart machines
  • A briefing event for all applicants for round 22 will be held online from 2-4pm on Wednesday 17 July. This webinar provides an overview of the innovation loans programme and detailed information about the application process. A recording and slides will be available afterwards.

    Deep dive workshops

    The business and financial submission is a critical part of the application loan in the innovation loans programme. We will be holding ‘deep dive’ workshops to enable applicants to consider how an innovation loan may fit within their funding strategy for growth at scale through innovation, and to engage with members of the innovation loans team and other applicants. The online workshops will have a maximum of 45 participants to promote engagement and discussion.

    Prior registration is mandatory for these workshops and applicants will only be permitted to register one participant at one workshop. Since each applicant will only be permitted one participant, we recommend that this should be the Chief Financial Officer or another member of the Board or Senior Leadership team with responsibility for developing the funding strategy for growth through innovation of the business. Click here to sign up for the briefing and a deep dive workshop.

    • Deep dive workshop 1: Wednesday 23 July, 2.00pm – 3.30pm
    • Deep dive workshop 2: Wednesday 30 July, 09.30am – 11.00am
    • Deep dive workshop 3: Monday 4 August, 11.00am – 12.30pm

Related Events and Recordings

Wed
16
Jul
2025

Innovation Loans Round 22 - Applicant Briefing Webinar and Deep-dive Workshops

14.00 - 00.30 | Online

Register
See all events

Related programme

Innovation Loans

Innovation Loans

UK registered SME businesses can apply for loan funding for innovative late-stage research and development projects with strong commercial potential that will significantly boost the UK economy.

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