The Defence and Security Accelerator (DASA) launched Defence Innovation Loans in 2021 to offer small and medium-sized businesses affordable funds to help commercialise their innovations. The scheme was run in cycles; the last of these closed on 5 January 2022.
After internal review, DASA has decided to tweak the format of the scheme to keep Defence Innovation Loans continuously open for proposals.
The changes mean innovators can now apply for Defence Innovation Loans at any time and can expect an initial outcome response within seven weeks rather than having to wait until the end of a cycle to receive feedback.
This new format is a pilot that will be reviewed and will end on 16 March 2022. Depending on the outcome of the pilot, DASA might change the scheme format again, e.g. return to cycle-based assessment periods.
The levels of available funding have not changed. You can apply for a loan between £250,000 and £1.6 million with a below market interest rate of 7.4 per cent per annum. This loan can cover up to 100 per cent of eligible project costs to aid the commercialisation of the solution and the overall term of the loan must not exceed seven years.
The applicant criteria for Defence Innovation Loans also remains the same. To apply, you must:
- be a UK registered SME
- intend to exploit the results in the UK or overseas to make a significant and positive impact on the UK economy and/or productivity
- give evidence that your business is suitable to take on a loan
Only SMEs are eligible to apply for Defence Innovation Loans. Individuals, academic institutions, research organisations and large companies are not eligible.
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Research & Development (R&D) tax relief has also proved to be a major boost to British business by giving companies the ability to unlock cash from innovation to help fund research and development into the ongoing enhancement of existing products and services.
Does your business undertake research and development? If so, speak to us today to set the benefits in motion. Our proven methodology offers a painless approach towards obtaining R&D tax relief.