Competition document cycle 6 TEST
Published 28 October 2025
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1. Introduction
The Defence and Security Accelerator (DASA) supported by Innovate UK Loans Ltd (Innovate UK) are working together to offer a Defence funding competition: the Defence Innovation Loan. This service provides an opportunity for single small and medium enterprises (SMEs) with solutions to defence themed problems to apply for a Defence Innovation Loan of between £100,000 and £1 million with a below market interest rate of 7.4% per annum. This loan can be used to cover up to 100% of eligible project costs to aid the commercialisation of the solution. Innovate UK provide further information on innovation loans (not Defence specific) here.
Applications for Defence Innovation Loans will be assessed in two stages.
During stage 1, DASA will conduct a full innovation assessment by defence stakeholders on submitted applications, focusing on desirability, feasibility and viability of the solution, as per the standard DASA competition process, using Defence Innovation Loans assessment criteria.%20%20
In conjunction with the DASA assessment, Innovate UK will also undertake a credit evaluation of your business to assess suitability for a Defence Innovation Loan. These checks will include suitability to make repayments and the strength of the company management team to deliver against the plan.
DASA will then consider the applications at a Decision Conference taking into account the outcome of both the DASA assessment and the Innovate UK credit check. Businesses that are recommended for funding at stage 1 of the assessment process will be subject to stage 2 assessment which comprises a detailed loan suitability assessment by Innovate UK.
Innovate UK will offer successful applicants, i.e. applicants who are successful at stage 2 assessment, the opportunity to take out a loan to help convert a mature innovative solution into a viable business proposition which may be capable of competing for Defence procurement.
Please note that successful applications will be governed by the Innovate UK Innovation Loans Ltd Terms and Conditions rather than the standard DASA Terms and Conditions. Applicants should review the Summary of General Terms and Conditions and 12 Terms and Conditions for details.