Question to the Ministry of Defence:

To ask the Secretary of State for Defence, with reference to page 65 of the Defence Industrial Strategy: Making Defence an Engine for Growth, published on 8 September 2025, CP 1388, from where the UK Defence Innovation Rapid Innovation Unit will access below market rate loans.

UK Defence Innovation (UKDI) will continue invest in structures to support business growth and to increase investment into SMEs, start-ups, and non-traditional defence and security suppliers to support a diverse and agile supply chain and ensure delivery of pioneering capability to national security and defence.

The UKDI - Defence and Security Accelerator (UKDI_DASA) is a Special Partner in the delivery of The Defence and Security (D&S) Seed Fund portfolio, which is funded by the Ministry of Defence (MOD) and sits within UK Innovation and Science Seed Fund (UKI2S). UKI2S is a Pre seed and Seed fund for defence and Security SMEs with investment from MOD for SME innovation looking for private equity funding.

The UKDI - Defence and Security Accelerator (UKDI_DASA) supported by Innovate UK Loans Ltd (Innovate UK) delivers a Defence funding competition: the Defence Innovation Loan. This service provides an opportunity for single Small and Medium Enterprises (SMEs) with solutions to defence themed problems to apply for a Defence Innovation Loan of between £100,000 and £1 million with a below market interest rate of 7.4% per annum