A Guide to Innovate UK Loans for Startups
If you are looking to secure non-dilutive funding to help bridge the gap between late-stage R&D projects and commercialisation, Innovate UK’s Innovation Loan programme might be for you. Their loan programme looks for projects that demonstrate high innovation potential and significant future economic impact, meaning climate-focused ventures are often eligible.
IUK are also much more likely to give loans to low-risk companies who can demonstrate significant revenues and traction, offering loans ranging from £100k to £2 million.
To qualify for an IUK loan, you must :
Be a UK-registered micro, small, or medium-sized enterprise
Conduct and exploit your project within the UK
Demonstrate the need for public funding
Demonstrate ability to repay the loan on time
Provide evidence of your suitability to handle a loan
Note that individuals, large companies, non-profits, academic institutions, and research organisations are not eligible to apply. Collaboration is not funded, but subcontractors are allowed if justified.
The application process then consists of three main sections:
Business and Financial Details
Project Questions
Project Finances
The application is evaluated based on the quality of the project and the business’s ability to manage and repay the loan. Therefore, the IUK loan application process operates like an IUK grant submission alongside a VC investment process.
How we can support
We’re an accredited Innovate UK Investor Partner, which means we can help certain SV ecosystem companies access Accelerated Pathways for alternative forms of finance like IUK Innovation Loans. For more information on how to access this non-dilutive funding, you can chat to our team to find out more.
Words by Beckie Cole
Beckie leads our Grants Team in writing winning bids for climate tech clients. Beckie joined SV from the charity sector, where she specialised in securing six-figure grant funding from Trusts and Foundations.