Notice

Defence Innovation Loans Assessment Criteria

Published 28 October 2025

1. DESIRABILITY

Please find the Defence Innovation Loan FY25/26 Cycle 6 competition document here. Whilst assessing keep the competition document in mind to ensure the proposal meets the competition scope.

For the Defence Innovation Loan, DASA is looking for innovations that have significant and realistic potential for commercialisation within defence, which will enable the supplier to repay the innovation loan. Therefore, the innovation must solve a defence challenge(s) and the innovator must provide a clear description of the user need for an innovation of this kind.

Check that the following points have been addressed in the application:

• Is there a clear description of the user or business need that the innovation addresses, ideally with supporting evidence?
• Does it describe the impact for defence in terms of performance, time and cost?
• Are any appropriate strategic priorities that the innovation is aligned with identified?
• Who would benefit from the innovation and how? Who would exploit the innovation if successful?
• Does it show benefit across defence (i.e. not just in a specific area)?
• Are any commercial sectors that might benefit identified?

Please note:

• The funding for the loans is for defence only, therefore the application must state a defence use case and while we are interested in any potential security exploitation opportunities, it is not a requirement.

End user assessors – please assess the application with particular reference to the desirability.

Technical assessors – your comments on the desirability are welcome but please focus on the feasibility. 

2. FEASIBILITY

Please find the Defence Innovation Loan FY25/26 Cycle 6 competition document here. Whilst assessing keep the competition document in mind to ensure the proposal meets the competition scope.

DASA is looking for innovations that have a good chance of technical success so the innovation can be successfully commercialised. Therefore, the innovation must be scientifically, technically and practically feasible. 

Check that the following points have been addressed in the application:

• Is the innovation scientifically, technically and practically feasible and can it be developed and commercialised within the proposed timescales?
• Is the innovation mature (i.e. at TRL 6 or above; please refer to the competition document)?

• Has the proposed innovation undergone, or will it undergo a robust testing regime with clear and quantifiable measures of progress and performance?

• Is there a clear plan for commercialisation with a focus on growth or scale up (i.e. scale up, enhancements or integration into existing systems and capabilities), including details of how they are going to support this activity?

• Do applications contain up to a maximum of 3 years’ worth of development work and associated costs in the project period, prior to commercialisation activity? Is the proposed product / service significantly innovative (i.e. is it clearly different or does it offer a significant benefit over other solutions which are in-service, on the current market or being considered for this purpose)?
• Have technical risks been identified, and are adequate mitigation plans in place?
• Are you aware of the applicant receiving government funding for the work described in this application? DASA will not double fund the same work.
• If the application is a resubmission, have feedback and points for improvement from the first submission been addressed satisfactorily (please refer to Application Summary)?
• Is it clear that the applicant and any sub-contractors have the appropriate technical expertise, experience, capability and appropriate resources to develop and commercialise the innovation?

End user assessors – your comments on the feasibility are welcome but please focus on the desirability.

Technical assessors – please assess the application with particular reference to the feasibility.

3. VIABILITY

Please find the Defence Innovation Loan FY25/26 Cycle 6 competition document here. Whilst assessing keep the competition document in mind to ensure the proposal meets the competition scope.

DASA is looking for innovations that can be developed and commercialised within the scope and term of the loan. There will not be any kind of demonstration or final technical report at the end of the loan period, therefore applications will not contain a demonstration plan. Instead of a demonstration, the desired outcome is a commercialised product / service (i.e. a procurement contract with the MOD either directly or via a prime), therefore applications should contain a clear route to commercial success and growth or scale up.

Check that the following points have been addressed in the application:

• Does the outlined route to commercial success and growth or scale up appear to be viable? What is the likelihood of the technology being purchased at the project cost and quantity?

• Does it describe the benefit and value for money for government, and explain any wider value to the UK economy?

• Has a robust technical project plan which identifies all links or dependencies between work packages and milestones been provided?
• Has detail on the total cost, the profiling of spend across milestones and when they would expect to make drawdowns on the loan been provided?
• Are any Government Furnished Assets (GFA) required for the work that will be carried out under the terms of the loan? GFA could be equipment, information or resources that are government-owned and loaned (on a free-of-charge basis) for the work. If GFA are required is the applicant in receipt of them already? Has the innovator explained how GFA would be acquired if needed and mitigated the risk of not acquiring it? Is the GFA included in the plan justified and reasonable? If GFA are required it is the responsibility of the company to arrange this directly with MOD. Being in receipt of a loan will not grant any preferential treatment with regards to the provision of GFA, and there is no guarantee GFA can be provided.
• Has information on any funding or support which the applicant is currently or has previously been in receipt of from industrial partners or government funding bodies been provided?
• Has the applicant made clear the impact on the innovation if the applicant was not awarded a Defence Innovation Loan?

Please note:

• The competition is being run under Innovate UK’s Terms and Conditions and successful suppliers will be asked to sign an Innovate UK Loan Agreement as opposed to a standard DASA contract, therefore the usual deliverables specified by DASA do not apply.
• Where the application outlines milestones, these should be points where the supplier intends to make a drawdown of the loan in advance of work to be completed, rather than points where they are expecting payment for work already completed.
• Alongside the DASA assessment, Innovate UK will also be conducting a credit check on applicants. The outcome of the credit check will be considered alongside the moderator recommendation at the Decision Conference.
• Innovate UK will also assess any pre-commercialisation activities, as part of its in depth credit evaluation, if the application proceeds to that stage of assessment.

End user assessors – your comments on the viability are welcome but please focus on the desirability.

Technical assessors – your comments on the viability are welcome but please focus on the feasibility.