Loans available for up to £1m for SMEs innovating in defence sector

It’s not often we can share good news regarding funding, but if you’re an SME working in defence and dual‑use technologies this will be well worth a few moments of your time.

My bet is that the biggest hurdle you are facing at the moment isn’t proving your concept but commercialising it.

And if that is the case, a new call for Innovate UK Defence Innovation Loans is a timely opportunity.

What’s on offer?

SMEs can now access £100,000 to £1 million in below‑market‑rate loans (fixed at 7.4%) to accelerate the journey from prototype to deployable product. With up to 100% of eligible project costs covered, this is one of the most practical funding routes available for companies ready to scale.

But time is short.

The deadline to apply is midday on May 19, so you’ll need to move quickly. To be eligible you’ll need to be a UK-registered SME, your product will need to be at TRL 6+, meaning it is tested, not theoretical and you’ll have to show a clear route to the defence market.

What’s the process?

The UK’s defence ecosystem relies heavily on agile, specialist SMEs – companies who can innovate quickly, adapt to emerging threats and bring new capability to market. But scaling production is often where momentum stalls.

That’s where these loans could prove so useful, because they are designed for companies who are ready to scale, industrialise and deliver.

All applications go through a two‑stage process:

1. Technical review by UK Defence Innovation

2. Financial and credit assessment by Innovate UK

How we can help

If you’re an SME with a defence‑ready innovation, this funding window is a real opportunity to accelerate your route to market.

And pairing the right financial support with the right manufacturing partner can make the difference between a promising prototype and a deployable capability. As the country’s leading contract additive manufacturer we are experts in helping SMEs bridge the gap between prototype and production.

For SMEs applying for Defence Innovation Loans, we can provide the manufacturing insight needed to strengthen your commercialisation plan – from costed production pathways to scalable build strategies.

If you’d like to explore how additive manufacturing can support your commercialisation plan – or how AMufacture can help you scale – we’re always happy to talk.

Apply for the loan here: https://www.gov.uk/government/publications/competition-defence-innovation-loans-fy2627-cycle-1