Our track record of crafting and winning grant applications coupled with the financial expertise to navigate the rigourous financial assessment stage will improve your chances of winning a Loan.
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To be a suitable candidate for an Innovate UK Innovation Loan, your company and project must meet strict criteria focused on commercial viability and UK impact.
✓ SME Requirement: Eligibility is limited to UK-registered micro, small, and medium-sized enterprises (SMEs). Large enterprises, research organizations, and charities are not eligible.
✓ Late-Stage R&D: Projects must be focused on **Experimental Development**—activities such as prototyping, real-world testing, initial tooling, and production scale-up. This funding is *not* for fundamental research or feasibility studies.
✓ Financial Need: Applicants must demonstrate they are 'credit constrained' and cannot secure appropriate finance from private sources. Furthermore, the business must show it has the financial viability and capability to service the interest and ultimately repay the principal.
✓ Single Applicant Rule: Unlike many Innovate UK grants, Innovation Loan applications must be submitted by a single business. Collaborative projects are generally not eligible.
Grantmi can help construct you submission to give you the best chance taht your your application can pass the technical innoavtion stage AND move past the Credit Team to secure the funding your innovation deserves.
As for grants, the process is competitive. The assessors look at the quality of your innovations, your route to commercialization, and the economic and social impacts of your project, similar to grants.
For winning applications who score highly on the scoring criteria, there is then an assessment by a team of credit analysts who will look at the financial aspects of your application both from the perspective of your business financials now and where they could be following your project.
Innovate loans are attractive as they can cover up to 100% of eligible project costs, which can mean substantial financial support for innovative projects (up to £2m).
They are made on generous terms, offering below-market interest rates during project execution (3.7%), during which time only the interest needs to be paid quarterly, with a rate of 7.4% during the loan repayment period. The total term, including execution and repayment, can be up to seven years.
They are designed to support late-stage research and development projects with strong commercial potential, helping businesses bring new products, processes, or services to market.
These loans are particularly advantageous for projects requiring significant capital expenditure, like a pilot plant or demonstrator units or to move an MVP to market ready product.
Innovation loans are often more accessible than grants for the right applicant with the right innovation project, making it easier for businesses to secure funding.
For innovation loans, your project will be a highly innovative late-stage research and development (R&D) project with the best potential for the future. There must be a clear route to commercialization 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, and which you can demonstrate have a high chance of achieving commercial success. It could also be 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 will also need to demonstrate that you:
1. Need public funding to undertake your project
2. Can cover the interest payments
3. Will be able to repay the loan on time
If you are successful with your application, the project is managed and monitored in a similar way to grants. We can provide assistance with this if required.