The purpose of the Innovation Loan is to “support the development of innovative new products, processes or services that are significantly ahead of others currently available, or propose an innovative use of existing products, processes or services.
It can also involve a new or innovative business model.” The loan fund is set up for SMEs undertaking high-risk R&D projects who cannot secure loan or equity funding at the required level through traditional sources.
Therefore, Innovate UK Innovation Loans do not require personal guarantees or assets to secure loans against. They are designed to overcome exactly this barrier.
From Innovate UK: “Although there are no personal guarantees and the loan is not dependent on asset values, there is an overall debenture so the loan is a senior secured debt obligation.”