Deadline: 13-Feb-2026
The UK Aerospace SME Programme provides grant funding of up to £1.5 million to support small and medium-sized enterprises developing innovative civil aerospace technologies.
The programme strengthens the UK aerospace supply chain by funding UK-based projects aligned with the Aerospace Technology Strategy and Destination Zero roadmaps, with a strong focus on near-term commercial impact within five years.
Programme Overview
The SME Programme is a UK funding initiative designed to accelerate innovation within the civil aerospace sector.
It supports small and medium-sized enterprises (SMEs) and their partners to develop advanced aerospace technologies that align with the UK Aerospace Technology Strategy and contribute to the Destination Zero vision for sustainable aviation.
The programme places a strong emphasis on strengthening the UK aerospace supply chain while ensuring funded technologies are commercially exploitable in the near to medium term.
Key Objectives of the SME Programme
The programme aims to:
• Strengthen the UK aerospace supply chain
• Accelerate SME-led innovation in civil aerospace
• Support technologies with clear commercial potential within five years
• Enable collaboration across industry, academia, and research organisations
• Advance the UK’s Destination Zero strategy for future aerospace technologies
Funding Details
Grant Amount
• Grants of up to £1.5 million per project
• Funding levels depend on project scope and consortium structure
Project Duration
• Minimum duration: 12 months
• Maximum duration: 36 months
SME Funding Requirement
• At least 50% of total eligible project costs must be allocated to micro, small, and medium-sized enterprises (MSMEs) within the consortium
Technology Focus Areas
Civil Aerospace Priority
Funded projects must focus on technology that can be exploited in the civil aerospace sector within five years.
This includes:
• Aircraft systems and structures
• Advanced materials and manufacturing
• Sustainable aviation technologies
• Digitalisation and automation
• Efficiency, safety, and performance improvements
Cross-Sector Applications
Technologies with applications beyond aerospace are welcome, provided:
• Civil aerospace exploitation remains the primary objective
• The project aligns with the UK Aerospace Technology Strategy
Alignment with Destination Zero
All applications must align with the Destination Zero roadmaps, which define the UK’s long-term strategy for aerospace innovation.
Destination Zero focuses on:
• Net-zero aviation
• Zero-emission flight
• Sustainable aerospace manufacturing
• Increased competitiveness of the UK aerospace sector
Who Is Eligible?
Eligible Organisations
This competition is open to UK-registered organisations only.
Eligible applicants include:
• Small and medium-sized enterprises (SMEs)
• Large businesses
• Academic institutions
• Research and Technology Organisations (RTOs)
• Charities and not-for-profit organisations
• Public sector organisations
Lead Organisation Requirements
To lead a project:
• The lead organisation must be an SME, or
• A large organisation with at least one SME partner in the consortium
Consortium and Collaboration Rules
Individual and Collaborative Applications
• Applicants may apply individually or as part of a consortium
• Collaborative applications are strongly encouraged
• Consortia can include organisations of different sizes and sectors
Location and Exploitation Requirements
All projects must:
• Be carried out entirely within the UK
• Intend to exploit results in or from the UK
• Strengthen UK-based aerospace capability and supply chains
Programme Agreements and Compliance
Successful applicants must:
• Sign the ATI SME Programme Agreement
• Comply with all competition rules and funding conditions
• Adhere to requirements set out in the UK Aerospace Technology Strategy
How the Programme Works
Step-by-Step Process
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Identify a civil aerospace technology challenge aligned with Destination Zero.
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Form a consortium if applying collaboratively, ensuring SME cost allocation rules are met.
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Define a clear technical development plan with commercial exploitation within five years.
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Prepare a UK-focused project plan covering delivery, impact, and value for money.
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Submit an application in line with competition guidance and deadlines.
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Successful projects receive grant funding and deliver R&D activities in the UK.
Why This Programme Matters
The SME Programme plays a critical role in:
• Scaling SME innovation within the UK aerospace sector
• Reducing technological and commercial risk for emerging technologies
• Supporting sustainable aviation goals
• Strengthening the UK’s global competitiveness in aerospace
• Encouraging long-term collaboration across industry and research
Common Mistakes to Avoid
• Failing to meet the 50% MSME cost allocation requirement
• Proposing technology without a clear civil aerospace exploitation pathway
• Weak alignment with Destination Zero roadmaps
• Including non-UK project activity
• Treating the programme as basic research rather than applied innovation
Tips for a Strong Application
• Clearly explain the civil aerospace market opportunity
• Demonstrate how the technology can be exploited within five years
• Show strong SME leadership or meaningful SME participation
• Align technical objectives directly with Destination Zero priorities
• Provide a clear UK economic and supply chain impact
Frequently Asked Questions (FAQ)
Who can apply to the SME Programme?
Any UK-registered organisation can apply, either individually or as part of a consortium, provided eligibility rules are met.
Can a large company lead a project?
Yes, but only if at least one SME is included in the consortium.
Is international collaboration allowed?
No. All project work must be carried out in the UK, and results must be exploited in or from the UK.
What percentage of costs must go to SMEs?
At least 50% of total eligible project costs must be allocated to micro, small, and medium-sized enterprises.
Are academic institutions eligible to participate?
Yes. Universities and research organisations can join collaborative projects as partners.
What is Destination Zero?
Destination Zero is the UK’s strategic roadmap for future aerospace technologies, focusing on sustainability, net-zero aviation, and industrial competitiveness.
How long can projects run?
Projects must run for a minimum of 12 months and a maximum of 36 months.
Conclusion
The UK Aerospace SME Programme is a strategic funding opportunity for SMEs and their partners to develop high-impact civil aerospace technologies.
By aligning innovation with Destination Zero and the UK Aerospace Technology Strategy, the programme strengthens the national supply chain, accelerates commercial readiness, and positions the UK at the forefront of sustainable aerospace innovation.
For more information, visit Aerospace Technology Institute.