The UK government is launching a £150 million loan programme to support businesses looking to modernise, innovate, and take advantage of new technologies. 

Innovate UK, part of UK Research and Investment (UKRI) will oversee the scheme in support of future economic growth and meeting challenges such as net zero, health and wellbeing, and exploiting the potential of next-generation technologies.

At the core of the programme will be the Seven Technology Families outlined since the launch of the UK’s July 2021 Innovation Strategy. 

These are: 

  • advanced materials (including meta, 2D, and self-healing materials) and manufacturing
  • AI, digital, and advanced computing
  • bioinformatics and genomics
  • engineering biology (the convergence of physical sciences, engineering, and biology)
  • electronics, photonics, and quantum technologies (including sensors and timing)
  • new energy, environmental, and climate technologies
  • robotics and smart machines.

Alongside the overarching Plan for Growth, and separate strategies for data, AI, space technology, and more, the Innovation Strategy replaces the Industrial Strategy, which had previously underpinned Innovate UK support for domestic innovation.

According to an announcement from the government, the funding will be available to SMEs over the next three years, via a series of competitions. It will prioritise projects in the areas set out in Innovate UK’s own Plan for Action. 

Under the scheme, businesses with innovative late-stage projects can apply for a loan of between £100,000 and £2 million, with flexible repayment terms to help secure their future growth and commercial success. 

A statement from the Department for Business, Energy, and Industrial Strategy (BEIS) says:

“The loans are part of the government’s plan to build on the measures outlined last year in its Innovation Strategy, enabling UK innovators to access the right finance at the right time in order to grow, building on our world-leading research capability and helping to secure the UK’s position as a science superpower.”

Science Minister George Freeman added, “Supporting our talented innovators, not only to develop their ideas but to see these ideas through to commercialisation, will be essential to growing an economy built on the technologies of the future, and securing the UK’s status as a true innovation nation.”

Indro Mukerjee, CEO of Innovate UK, said, “Innovation loans are an important part of the investment support that Innovate UK offers to help UK businesses achieve their growth ambitions. 

“We have tested this new form of support rigorously and I am pleased that we can now offer £150 million over the next three years through innovation loans as part of our commitment to support innovative businesses to grow rapidly and achieve scale.

“The innovation loans scheme is just one of the services for growing and scaling businesses across the UK. Our wraparound support now includes greater access to Innovate UK EDGE, a business advisory service; and Innovate UK KTN, with more opportunities for businesses to connect with potential academic and business partners to help scale in the UK and abroad.

“Allied with this is our continued work with the British Business Bank and private finance to provide further backing for UK innovators.”