The Innovation Grant Advance Loan is finance that lets a UK company draw cash against a grant it has already been awarded — before the grant provider pays it. Innovate UK and most public grants pay in arrears, so you spend first and claim back later. SPRK’s innovation funding service bridges that gap, turning a confirmed award into working capital you can use now.
SPRK can reduce a typical Innovate UK project’s working capital requirement by up to 60%. We work with grants from all providers, including Innovate UK, UKRI, Innovate UK Edge, KTP, EIC, DASA.
It’s a core part of SPRK’s innovation grant funding: non-dilutive, repaid from the grant itself, with no cash paid upfront — built specifically for SME innovation funding. An advance is not a replacement for any ‘matched funding’ requirements but significantly reduces the equity required to fund a grant award.
Grant drawdowns are typically quarterly or milestone-based, which means you often fund salaries, equipment and subcontractors months before the money arrives. An Innovation Grant Advance Loan lets you borrow against your signed grant award and repay automatically from each drawdown as it lands — so your project keeps moving instead of stalling on cashflow.
We advance against confirmed, non-dilutive grants from recognised global public funders awarded to a UK business — most commonly Innovate UK grants, EIC grants and themed programmes. What matters is a signed grant award letter or offer and a clear drawdown schedule; that schedule drives the advance loan amounts and its repayment profile. If you’re not sure your grant qualifies, contact the team at SPRK and we’ll tell you quickly.
The application is quick and online. Once we’ve validated your award letter, drawdown schedule and you’ve gone through underwriting, funds are released the same day as approval, under one set of standardised documents — so the advance is in place in time to cover your upfront project costs.
A grant is money you’re awarded and don’t repay; an advance is a loan that gives you that grant money sooner and is then repaid from it. They aren’t alternatives — the loan simply unlocks the timing of the grant you’ve already won. You can draw up to 80% of your quarterly grant costs, with any surplus staying with you, which can cut the working capital you need to tie up in a project by a meaningful margin.
Access your grant payments sooner with no cash paid upfront
Boost cashflow by drawing up to 80% of your quarterly grant costs
Reduce capital requirements by up to 60%
Establishment fee
Interest rate
Zero
Quick & Easy application process
Fast approval and funding times
Zero interest repayments during term of Grant Advance
Repaid
One set of standardised documents (first ranking debenture) for all Grant Advance Loans
SPRK are specialists in Innovation Term Loans, and we’re here to help accelerate your business
What is SPRK’s Innovation Grant Advance Loan?
SPRK’s Innovation Grant Loan is an advancement on your Innovation Grant. Companies that are awarded Innovation Grants can often wait for up to 5 months or longer from the moment they start incurring expenditure to when the Grant Award body pays out. SPRK bridges this gap helping companies reduce the need to raise expensive equity to fund their Grant projects.
What are the benefits of a Grant Advance Loan?
The benefits of a Grant Advance loan is that it’s a non-dilutive source of capital that can reduce the capital requirements for a typical Government grant project by more than 50%. SPRK does this with a product called a SPRK Innovation Grant Advance Loan.
Am I eligible for a SPRK Innovation Grant Advance Loan?
If you are in the process of being awarded or have been awarded an Innovation Grant please contact the team at SPRK to understand how we can help your business. We will only lend to a business when they are in receipt of their signed Grant Offer Letter and companies applying for a SPRK Grant Advance Funding must demonstrate the ability to fund any grant costs that are not covered by the SPRK Innovation Grant Advance Loan.
Can SPRK help through the Grant application process?
SPRK does not advise on Grant applications, we can however discuss the financing aspects of your Grant award ahead of, during, or after your Grant submission. We have a number of partners who can assist with the preparation and submission of grant applications.
How much will SPRK lend against my Innovation Grant?
SPRK typically advances up to 80% of each quarter / milestone on the first day of the period. This means you have the cash in your bank to fund your expenditure ahead of incurring it.
How long does it take to apply for a SPRK Innovation Grant Advance Loan?
Completing your application through the SPRK Grant Portal is quick and easy, and the SPRK team is here to support you through your application. Applications can be completed in as little as 15 minutes.
How long does it take post approval to fund my Grant Advance?
Post approval we look to issue loan agreements; borrowers have 72 hours to sign these agreements and funding is typically the same day as signing.
Is there a minimum term on my SPRK Innovation Grant Advance Loan?
SPRK has a minimum term of 3 months on any Grant Advance loan.
What grants does SPRK fund?
SPRK advances against grants from most national and international grant award bodies. These include Innovate UK, UK Research and Innovation (UKRI), Defence & Security Accelerator (DASA), Innovate UK Edge, Horizon Europe, Horizon UK, Catapult Networks, Invest Northern Ireland, Scottish Enterprise, Development Bank of Wales. This is not an exhaustive list so always contact SPRK for details.
How does repayment work?
Companies are required to settle each SPRK Innovation Grant Advance Loan with the receipts from their Grant Award payments within 48hrs of receipt of payment.
Do I need to make interest payments on my SPRK Innovation Grant Advance Loan?
Interest is calculated on your SPRK Innovation Grant Advance Loan and added to the loan principal. There are no interest payments during the term of loan, interest is settled at the end of the loan.
What happens if my Grant payment does not cover the SPRK Innovation Grant Advance Loan?
SPRK works with borrowers to ensure that this situation does not occur. However, in circumstances where the grant payment is reduced or declined, the company is still responsible for settling the loan. We will work with borrowers on a case by case basis if this occurs.