Competition: Defence Innovation Loans FY25/26 Cycle 7
Summary
The UK Defence Innovation unit and Defence and Security Accelerator announced Cycle 7 of the Defence Innovation Loans competition, offering loans of up to £1 million at a below-market interest rate of 7.4% per annum. The loans are designed to help businesses convert mature defence innovations into viable business propositions suitable for defence procurement. Proposals must be submitted through the UKDI submission service portal.
What changed
The Defence and Security Accelerator launched the FY25/26 Cycle 7 competition for Defence Innovation Loans, offering borrowing of up to £1 million at a preferential 7.4% annual interest rate. This represents the seventh cycle of an ongoing programme to accelerate defence innovation by helping mature technologies reach the procurement stage. The programme targets businesses with developed defence innovations seeking to commercialise through defence procurement channels.
Affected parties—typically defence technology companies, manufacturers, and research organisations—should evaluate whether their mature innovations align with defence procurement needs and consider applying for this favourable financing. The below-market interest rate makes these loans particularly attractive for capital-intensive development phases. Prospective applicants are advised to review the assessment criteria and terms and conditions linked in the competition documentation.
What to do next
- Register for a UKDI account via the submission service portal
- Submit proposals through the UKDI submission service before the competition deadline
- Review the Competition Document and Assessment Criteria for eligibility requirements
Archived snapshot
Apr 16, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Notice
Competition: Defence Innovation Loans FY25/26 Cycle 7
Loans of up to £1 million with a below market interest rate of 7.4% per annum to help convert your mature defence innovation into a strong business proposition for defence procurement.
From: UK Defence Innovation and Defence and Security Accelerator Published 27 January 2026 Last updated 5 February 2026
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Documents
Competition Document: Defence Innovation Loan FY25/26 Cycle 7
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Defence Innovation Loans Assessment Criteria
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Innovation Loan - Summary of general Terms and Conditions
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Defence Innovation Loans: Checklist and Top Tips for applicants
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Videos: Defence Innovation Loans Explained – from Application to Award
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Details
Details
A video has been recorded to give you all the information you need about applying for a Defence Innovation Loan; Video: Defence Innovation Loans – Everything you need to know.
Proposals must be submitted via the UKDI submission service. If you are not already registered to use this portal, you can register here. We recommend you use a Google Chrome browser when accessing the Enterprise Collaboration Service.
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For more information on the Defence Innovation Loan Competition and how to apply for funding, please read the Competition Document: Defence Innovation Loans above.
Published 27 January 2026 Last updated 5 February 2026 show all updates
1.
5 February 2026
Links and wording updated to reflect new UKDI website and newly branded submission service
2.
27 January 2026
First published.
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