Beginner's Guide on Funding Opportunities
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Project co-funded by the European Commission within the Seventh Framework Programme
Dissemination Level : PP
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Public
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Restricted to other programme participants (including the Commission Services)
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Restricted to a group specified by the consortium (including the Commission Services)
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Confidential, only for members of the consortium (including the Commission Services)
Table of Contents
1
INTRODUCTION ................................................................................................................................ 6
2
HOW TO USE THIS DOCUMENT............................................................................................................. 7
3
FUNDING OPPORTUNITIES ................................................................................................................ 11
3.1
Overview .............................................................................................................................. 11
3.2
Matrix of Correspondence.................................................................................................... 12
3.3
Grants .................................................................................................................................. 14
3.4
Loans and Guarantees ......................................................................................................... 17
4
BEYOND 2013 ............................................................................................................................... 20
5
SUPPORT SERVICES ......................................................................................................................... 23
Table of Annexes
ANNEX 1
FUNDING OPPORTUNITIES’ FACT SHEETS ............................................................................................. 25
A1.1
FP7 Grants ............................................................................................................................ 26
A1.2
CIP Grants ............................................................................................................................ 30
A1.3
LIFE+ Grants ......................................................................................................................... 34
A1.4
ERDF Grants ......................................................................................................................... 37
A1.5
EAFRD Grants ....................................................................................................................... 40
A1.6
GIF (Venture Capital & Risk Capital) .................................................................................... 43
A1.7
SMEG (Loan Guarantees) ..................................................................................................... 46
A1.8
RSI (Loan Guarantees) .......................................................................................................... 49
A1.9
JEREMIE (Equity, Loans and Guarantees) ............................................................................ 52
A1.10
EIB Loans .............................................................................................................................. 55
ANNEX 2
BIBLIOGRAPHY ............................................................................................................................... 57
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List of Tables
Table 1: Overview of most relevant grants ...................................................................................................... 14
Table 2: Overview of most relevant loans and guarantees .............................................................................. 17
Table 3: Horizon 2020 and COSME financial instruments ................................................................................ 21
Table 4: Correspondence between current/future funding opportunities...................................................... 21
List of Figures
Figure 1: Life cycle (SME or product) ................................................................................................................. 8
Figure 2: Matrix of correspondence ................................................................................................................. 13
Figure 3: Matrix of correspondence beyond 2013 ........................................................................................... 22
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Acronyms
Acronyms
Definitions
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Acronyms
Definitions
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1
Introduction
For any private company, the road from an innovative idea to the commercialisation of a
new product, application or service1 is exciting but also very challenging. This is especially
important for SMEs, which due to their size do not always have the necessary workforce
or skills at their disposal to overcome the very diverse obstacles they have to face in
addition to the technical challenges: elaboration of business plans, protection of IPRs,
promotion of their products, and of course funding.
As far as the latter is concerned, the European Union offers numerous opportunities to
companies to co-finance innovation either through the attribution of grants or through
mechanisms that facilitates the access to loans.
However, this wide variety of mechanisms is in itself an obstacle for small companies
since it is time consuming to analyse and understand what the most appropriate sources
of financing are and how to access them.
The main objective of this "Beginner's Guide" is to help SMEs looking for funding identify
the most relevant EU funding opportunities, depending on their own situation.
Although in principle the opportunities presented in this document can be of interest to
any company, the guide focuses on the funding opportunities accessible to SMEs acting in
GMES and its related domains (e.g. Earth observation, remote sensing, GIS, etc.).
This beginner's guide concerns both recently created companies (e.g. start-up) and
companies already on the market willing to commercialise new products.
The document concentrates on the funding opportunities available from now until the
end of 2013. However, it also gives indications about the opportunities that will be
available through the next Multiannual Financial Framework (2014 – 2020) of the
European Union.
Information is also provided on a set of support services relevant to SMEs and likely to
complement the funding opportunities described in this document.
1
In this document, "products", "applications" or "services" are all referred to as "products".
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2
How to use this document
As indicated in the introduction, the objective of this document is to enable SMEs having
no specific knowledge of the funding opportunities offered by the European Union, to
easily identify those that are most relevant to their business.
In this perspective, the document is conceived as an "entry point" that helps SMEs to
identify relevant opportunities as well as the information sources where detailed
explanations on these opportunities are available.
The identification of the most relevant opportunities is based on a "matrix of
correspondence" which proposes a mapping between SME needs for funding on the one
hand and existing funding opportunities, on the other hand. This matrix is provided in the
next chapter.
To use this matrix, users of this guide are invited to follow a 3-step approach, as
illustrated below:
Step 1: Situation in the life cycle
In general, the life cycle of a SME (or of a new product developed by a SME) can be split
into three main phases:
Plans (from the idea to a business plan);
Start-up (from business plan to first customer);
Growth (from first customer to initial profit and business expansion).
In turn, these three main phases can be split into a more detailed process which involves
eight different sub-phases, as illustrated hereafter.
Page: 7 of 58
Figure 1: Life cycle (SME or product)
Depending on the position of the SME in the life cycle (or depending on the position of
the product in this life cycle), the needs in terms of funding are not necessarily the same.
Needs can relate for instance to equity, to debt finance or to a combination of both.
The first step therefore consists in identifying where the SME (or the product) is situated
in its life cycle. To do that, users of this guide must position themselves in the life cycle
described above.
Step 2: Identification of Possible Opportunities
The needs of SMEs for funding can be fulfilled by different types of investors, such as
private business angels, venture capital, seed capital funds, banks, etc. Some of these
needs can also be addressed by public money and notably by a number of funding
instruments established by the European Union which are conceived with the aim to
support innovation and SMEs.
In practice, the funding instruments offered by the European Union take the form of
grants, loans or guarantees2.
Knowing that the available funding instruments also depend on the position of the SME in
its life cycle, the second step therefore for users of this guide consists in identifying the
funding instruments that are potentially most adapted to their needs.
This can be achieved thanks to the information provided in Chapter 3, which describes
existing instruments and indicates, through the matrix of correspondence mentioned
previously, how they match the different steps of the life cycle.
2
The objective of these guarantees is to facilitate the attribution of loans to SMEs.
Page: 8 of 58
The way the matrix works is illustrated by the two fictitious examples provided below.
Fictitious example 1: "Our company has developed an innovative tool for monitoring
urban growth. We have already approached several major EU cities that confirmed
interest in our product but have been reluctant to invest in this product as long as it has
not been tested in "real-life" conditions. We would like to perform a testing campaign in
real conditions but we lack budget and are not willing to increase our Company's debt. Are
there EU funding opportunities that we could benefit from?"
In the above case, loans should be avoided since the company does not want to increase
debt. Grants would be more appropriate. Considering the type of activities to be
performed (Beta testing / market testing), the matrix of correspondence indicates that
funding opportunities could be offered by grants funded through CIP, LIFE+ or ERDF (see
diagram below). EAFRD grants would not be relevant since the concerned activities do not
relate to rural development, which is the focus of EAFRD.
Fictitious example 2: "Our company commercialises a water quality monitoring product
which is already used by a few local authorities. Now we would like to increase our
customer basis but this requires significant investments. The business plan we have
established makes us confident in our ability to increase the number of customers we have
and to reimburse loans. Would some EU funding instruments be well adapted to our
situation?"
Considering that only the "Business Expansion" phase is concerned, the matrix of
correspondence shows that possible opportunities would be loans or guarantees
provided by GIF, JEREMIE or EIB (see diagram below).
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Step 3: Selection of Most Relevant Opportunities
Based on the funding instrument description forms available in the annex, the third step
consists in determining which one(s) of the possible instruments identified previously are
indeed really adapted to the needs of the SME.
In this perspective, the forms provide a systematic description of each instrument:
Brief description;
Eligibility criteria (Who can benefit?);
Accession process (How to proceed to benefit from the instrument?);
Access conditions (What are the conditions for benefiting from the instrument?).
The forms also provide links to services (e.g. online portal) or documents (e.g. brochure)
where detailed information on the instrument can be found.
When relevant, the description forms may include links to non-financial supporting
services likely to assist SMEs.
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3
Funding Opportunities
3.1
Overview
The EU-based funding opportunities available to SMEs take mainly the form of grants,
loans and in some cases guarantees, which aim at facilitating the access to loans.
These opportunities are available either through programmes managed directly by the
European Commission or its agencies (centralised management) or through programmes
managed at national or regional level (managed through Structural Funds3).
3.1.1
Grants
The support offered by the European Union in the context of grants usually consists of
subsidies (direct funding) that help financing projects proposed by a single applicant or a
group of applicants. Co-funding is therefore the general rule, which means that subsidies
only cover part of the costs.
Moreover, the proposed projects must fit into the domains and objectives defined by
thematic programmes. These programmes can be managed either at European level or at
national/regional level.
As far as the European level is concerned, the grants which are most relevant to SMEs
involved in GMES-related areas are those included under the Seventh Framework
Programme for Research and Technological Development (FP7), the Competitiveness and
Innovation Framework Programme (CIP) and the programme supporting environmental
and nature conservation (LIFE+).
As far as national and regional levels are concerned, the most relevant grants are those
included under the European Regional Development Fund (ERDF) and in some cases
those included under the European Agricultural Fund for Rural Development (EAFRD).
3
Structural Funds are EU funds administrated at national or regional level and aimed to reduce disparities
in the development of regions and to support social and economic cohesion within the European Union.
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3.1.2
Loans and Guarantees
In general, financial instruments such as loans and guarantees are not offered directly by
European institutions to SMEs. They are usually processed through financial
intermediaries such as banks, credit institutions or investment funds.
The main objective of these instruments is to encourage these intermediaries to lend
money to SMEs by creating favourable conditions and thus to increase the volume of
credit available to SMEs.
The loans and guarantees which are most relevant to SMEs involved in GMES-related
areas are those provided through the High Growth and Innovative SME Facility (GIF), the
SME Guarantee Facility (SMEG), the Risk Sharing Instrument for Innovative and Research
oriented SMEs and small Mid-Caps (RSI), the Joint European Resources for Micro and
Medium Enterprises (JEREMIE) and the European Investment Bank (EIB).
3.2
Matrix of Correspondence
For each phase of the life cycle of a SME or product, the matrix of correspondence
provided on the next page indicates which one of the funding instruments mentioned in
the previous section (FP7 grants, CIP grants, LIFE+ grants, ERDF grants, EAFRD grants, GIF,
SMEG, RSI, JEREMIES and EIB loans) are possibly available.
Brief descriptions of these instruments are then provided in sections 3.3 and 3.4. More
detailed descriptions are available in the annex.
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Figure 2: Matrix of correspondence
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3.3
Grants
As indicated in the overview (Chap 3.1), grants which are most relevant to SMEs involved
in GMES-related areas are those placed under FP7, CIP, LIFE+, ERDF and EAFRD.
Types of Grants
Brief Description
FP7 Grants
FP7 Grants aim at supporting RTD. They provide funding for cofinancing research, technological development and demonstration
projects. FP7 consists of five Specific Programmes, of which
Cooperation is considered to be the most relevant to GMESrelated business.
CIP Grants
CIP Grants aim at fostering competitiveness of EU companies. They
provide funding for co-financing pilot and market replication
projects. CIP focuses mainly on SMEs and supports in particular
eco-innovation activities.
LIFE+ Grants
LIFE+ grants aim at supporting pilot or demonstration projects that
contribute to the implementation, updating and development of
EU environmental policy. They provide funding for co-financing
activities lying after the research phase and before market
replication, provided that they include a prototyping activity.
ERDF Grants
As part as of the Structural Funds, ERDF grants aim at reducing
disparities in the development of regions. They provide funding for
co-financing projects related to domains such as RTD, innovation,
technology transfer and business development.
EAFRD Grants
EAFRD grants aim at supporting companies operating in fields that
contribute to fulfil the EU rural development policy. They can cofinance projects related to environment, biodiversity preservation,
water management, climate change mitigation or renewable
energies.
Table 1: Overview of most relevant grants
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FP7 Grants
The Seventh Framework Programme for Research and Technological Development (FP7)
is the EU instrument specifically targeted at supporting research and development.
Among the five specific programmes that compose FP7, Cooperation is certainly the most
relevant programme to companies developing GMES-related products. To a certain
extent, the Capacities specific programme might also be relevant through its area
Research for the benefit of SMEs, which aims at strengthening the innovation capacity of
SMEs and their contribution to the development of new technology-based products and
markets.
Cooperation focuses on ten thematic areas. Some of them may be eligible for GMESrelated activities: food, agriculture and fisheries, energy, environment (including climate
change), space and security.
Projects co-funded through FP7 grants must be focused on research and technological
development activities. They can also include demonstration activities. Applicants must
also demonstrate that their project provides an added-value at European-level.
CIP Grants
Mainly targeted to SMEs, the Competitiveness and Innovation Framework Programme
(CIP) encourages a better take-up and use of information and communication
technologies (ICT) and helps to develop the information society.
Among the three operational programmes that compose CIP, the Entrepreneurship and
Innovation Programme (EIP) is the most relevant to companies developing GMES-related
products. In particular, this programme includes Eco-innovation projects for the testing of
innovative products in real conditions, processes and services aimed at reducing
environmental impacts, preventing pollution or achieving a more efficient use of natural
resources.
Projects co-funded through CIP must target first applications or market replication of
innovative or eco-innovative techniques, processes, products or practices of European
relevance, which have already been technically demonstrated with success but have not
yet significantly penetrated the market. Research activities cannot be funded through CIP.
LIFE+ Grants
The LIFE+ programme is the EU’s funding instrument for the environment. It co-finances
pilot or demonstration projects that contribute to the implementation, updating and
development of EU environmental policy. LIFE+ consists of three "strands" respectively
dedicated to Nature and Biodiversity, Environment Policy and Governance and
Information and Communication.
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The first two strands (Nature and Biodiversity and Environment Policy and Governance)
are the most relevant to companies developing GMES-related products.
All activities included between the research phase and market replication, and that
include a prototyping activity (prototype setting-up and testing) are eligible under LIFE+
grants.
ERDF Grants
The European Regional Development Fund (ERDF) is part of the Structural Funds. Among
others, ERDF can co-finance activities in areas related to innovation and competitiveness
(e.g. innovative technologies, eco-innovation).
ERDF is managed by either national or regional authorities. Its implementation is
performed in line with the operational programme designed by each Member State.
The activities eligible under ERDF Grants must be in line with the strategy and priorities
established by the Member State or regions where they are proposed. These activities
must relate to at least one of the following areas: research and technological
development, innovation, technology transfer, information and communication
technologies, human resources development and business development.
EAFRD Grants
The European Agricultural Fund for Rural Development (EAFRD) is a funding instrument
included within the Common Agricultural Policy (CAP). The funding opportunities offered
by EAFRD depend on the Rural Development Programmes (RDPs) designed by the
Member States (either at national or regional level).
By design, each Rural Development Programme addresses four axes. For companies
developing GMES-related products, the most relevant axis is the second one, which aims
at improving the environment and the countryside. In particular, this axis addresses
domains such as land management, natural resource protection, biodiversity protection,
NATURA 20004 site management, water and soil protection and climate change
mitigation.
4
NATURA 2000 is an ecological network of protected areas in the territory of the European Union
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3.4
Loans and Guarantees
As indicated in the overview, the most relevant instruments providing loans and
guarantee to SMEs involved in GMES-related areas are GIF, SMEG, RSI, JEREMIE and EIB
Loans.
Types of Loans &
Guarantees
Brief Description
GIF
GIF provides SMEs with access to venture capital both in the early
stages and in their expansion phase. GIF targets activities such as
technological development, innovation (including eco-Innovation),
technology transfer and cross-border expansion of business.
SMEG
SMEG facilitates the access of SMEs to loans, mezzanine finance
and equity. SMEG addresses, among others, investment in tangible
and intangible assets, business transfers, working capital and
innovation activities (incl. technological development).
RSI
RSI facilitates the access by SMEs to loans covering investments in
tangible and intangible assets as well as working capital. RSI is the
SME-specific component of the Risk-Sharing Finance Facility (RSFF)
established under FP7.
JEREMIE
In the Member States and regions where it is implemented,
JEREMIE enables the financing of SMEs by means of equity, loans
or guarantees. It covers all kind of activities, from the creation of a
new business to the expansion of an existing one.
EIB Loans
EIB loans support the investments necessary for a small business to
develop, such as purchases of plant and equipment, R&D
expenditure, building up or taking over distribution networks, and
company transmission in order to safeguard economic activity.
Table 2: Overview of most relevant loans and guarantees
GIF
The High Growth and Innovative SME Facility (GIF) enables innovative SMEs with high
growth potential to get access to venture capital in their early stages and in their
expansion phase.
GIF is well adapted to SMEs seeking funding to finance for a new product or service, to
finance working capital or for entry into a new market.
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The supply of equity is made through a number of financial intermediaries (generally
venture capital funds) selected within the Member States of the European Union.
GIF has been developed under the Entrepreneurship and Innovation (EIP) specific
programme of the Competitiveness and Innovation Framework Programme (CIP). It is
managed by the European Investment Fund (EIF) on behalf of the European Commission.
SMEG
The SME Guarantee Facility (SMEG) provides guarantees to a number of financial
intermediaries (banks) selected within the Member States of the European Union who in
turns are incited to propose loans to SMEs.
SMEG is well adapted to the funding of starting-up business and to the financing of new
products.
Different types of loans can be envisaged, such as mid-term loans, long-term loans, microloans as well as lease transactions. These loans can address investments in tangible and
intangible assets, business transfers, working capital, or innovation activities, such as
technological development and the acquisition of licences.
As for GIF, the SMEG has been developed under the Competitiveness and Innovation
Framework Programme (CIP) and is specifically tailored to SMEs. SMEG is also managed
by the European Investment Fund on behalf of the European Commission.
RSI
The Risk Sharing Instrument for Innovative and Research-oriented SMEs and small MidCaps (RSI) complements the SMEG. It aims at facilitating access to loans and leases to
SMEs investing in R&D and innovation by providing financial intermediaries with
guarantees enabling them to extend loans and leases.
RSI loans can address investment in tangible and intangible assets as well as in working
capital.
RSI is a joint pilot guarantee instrument of the European Investment Fund, the European
Investment Bank and the European Commission (DG Research and Innovation). RSI was
created early 2012 as a component of the Risk-Sharing Finance Facility (RSFF) and is
financed under FP7.
JEREMIE
The Joint European Resources for Micro and Medium Enterprises (JEREMIE) is designed to
optimise the use of ERDF funding. It aims to improve access to finance through the supply
of micro-credit, venture capital finance or guarantees and other forms of innovative
financing.
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SMEs can access loans and equity participation through a number of intermediaries
(venture capital funds, banks, guarantee funds). These loans and equity participation can
address a wide range of activities such as the development of new products, market
expansion, business-oriented R&D, modernisation of productive structures, technology
transfer, etc.
JEREMIE has been developed jointly by the European Commission and the European
Investment Fund, with the European Investment Bank, in the context of the European
Regional Development Fund (ERDF). However, JEREMIE has been conceived as an
optional mechanism and is therefore not available in all Member States and regions. To
date, only a limited number of JEREMIE Funding Agreements have been signed5.
EIB Loans
The European Investment Bank (EIB) provides loans to SMEs through financial
intermediaries (local partner banks).
These loans may address tangible and intangible investments necessary for a small
business to develop, such as purchases of plant and equipment, R&D expenditure,
building up or taking over distribution networks in domestic or other markets within the
EU and even company transmission in order to safeguard economic activity.
5
JEREMIE funding agreements have been signed in the following Member States and regions: Greece,
Romania, Latvia, Lithuania, France (Regions Languedoc-Roussillon and Provence Alpes Côte d'Azur), Italy
(Regions Campania, Sicily and Calabria), Slovakia, Cyprus, Bulgaria and Malta.
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4
Beyond 2013
Most of the funding opportunities described in this document are strongly related to the
current Multi-annual Financial Framework (MFF) which sets out the budget's spending
priorities of the European Union for the period 2007-2013.
A new MFF covering the period 2014-2020 is currently under discussion between the
European Institutions and the Member States. Several of the funding opportunities
described in the previous chapters will evolve when this new MFF enters into force.
Although discussions on the next MFF are still on-going, the expected evolution of current
funding opportunities (at least the main trends) is known. They are summarised below.
First of all, future funding opportunities will still take the form of grants on the one hand
and of loans and guarantees on the other hand.
As far as grants are concerned, it is expected that those proposed through the ERDF and
EAFRD will still be available, probably under similar conditions to the current ones.
The LIFE+ programme will be continued through the "LIFE Programme for the
Environment and Climate Action". The current LIFE+ components ("strands") will be
replaced by "sub-programmes" covering Environment and Climate Action, which will still
include grants.
The main evolution concerns the grants available through the Seventh Framework
Programme for Research and Technological Development (FP) and the Competitiveness
and Innovation Programme (CIP).
Indeed, FP7 and CIP will be replaced by two new programmes corresponding to a new
sharing of activities: a new programme called "Horizon 2020" will combine all research
and innovation funding currently provided through FP7 and CIP while "COSME" (the
Programme for the Competitiveness of enterprises and SMEs) will replace the
"competitiveness" component of the CIP.
In practice, FP7 grants and CIP grants will be replaced by Horizon 2020 grants, which will
apply a single set of rules.
As far as loans and guarantees are concerned, it is expected that those proposed by the
EIB will still be available, probably under similar conditions to the current ones. JEREMIE
will also be provided until the end of 2015 under the same conditions as the current ones.
The main evolutions concern the other instruments, namely GIF, SMEG and RSI. These
instruments, which were available through FP7 or CIP, will be replaced by new
instruments implemented under Horizon 2020 or COSME. These new instruments are
listed in the table below.
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HORIZON 2020
COSME
Loans and Guarantee Service for
Research and Innovation ("RSFF II")
Loan Guarantee Facility
SMEs and Small Midcaps Guarantee
Facility for Research and Innovation
("RSI II")
SME Loan Securitization
Equity Facility for Research and
Innovation
Equity Facility for Growth
Table 3: Horizon 2020 and COSME financial instruments
In practice, GIF, which addressed both innovation and growth, will be replaced by two
instruments: Equity Facility for Research and Innovation (Horizon 2020) and Equity Facility
for Growth (COSME). SMEG will be replaced by the Loan Guarantee Facility (COSME) and
RSI will be continued through RSI II (Horizon 2020).
The table below summarises the correspondence between current and future
instruments, for both grants and loans.
Funding Opportunities (2007-2013)
Funding Opportunities (2014-2020)
FP7 grants
Horizon 2020 grants
CIP grants
Horizon 2020 grants
LIFE+ grants
LIFE Programme for the Environment
and Climate Action grants
ERDF grants
ERDF grants
EAFRD grants
EAFRD grants
GIF
Equity Facility for R&I (Horizon 2020)
Equity Facility for Growth (COSME)
SMEG
Loan Guarantee Facility (COSME)
RSI
RSI II (Horizon 2020)
JEREMIE
JEREMIE (until 2015)
EIB loans
EIB loans
Table 4: Correspondence between current/future funding opportunities
Beyond 2013, the matrix provided in Chapter 3 should therefore be replaced by the
matrix provided on the next page.
Page: 21 of 58
Figure 3: Matrix of correspondence beyond 2013
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5
Support Services
In addition to the funding opportunities mentioned in the rest of this beginner's guide,
several support services or networks exist that can also help SMEs developing their
business. Some of them are listed below.
The Enterprise Europe Network
The Enterprise Europe Network (EEN) has been established by the European
Commission's Directorate-General for Enterprise and Industry. The objective of the
network is to provide small enterprises with a wide range of free-of-charge services
through business and innovation service centres all around the European Union.
For instance the Enterprise Europe Network can help SMEs to develop their business in
new markets, to source or license new technologies or to find access to EU finance and
funding.
All the services offered by the Enterprise Europe Network are described on the following
website: www.enterprise-europe-network.ec.europa.eu.
The European Small Business Portal
The European Small Business Portal is also managed by the European Commission
Directorate-General for Enterprise and Industry.
This portal gathers all the information provided by the EU on and for SMEs, ranging from
practical advice to policy issues, from local contact points to networking links.
The portal is available
business/index_en.htm.
at
the
following
address:
http://ec.europa.eu/small-
The IPR Help Desk
The European IPR Helpdesk offers free of charge, first-line support on IP and IPR matters
to beneficiaries of EU funded research projects and EU SMEs involved in transnational
partnership agreements, especially within the Enterprise Europe Network (EEN).
The IPR Helpdesk provides general information and personalized advice for all questions
dealing with intellectual property rights related to a research or innovation project
funded by the EU.
Information on the helpdesk is available at the following address: www.ipr-helpdesk.org.
Page: 23 of 58
Europe Direct
Europe Direct offers a central information service reachable by phone or internet as well
as local information services in every European Member State.
Europe Direct's role is to answer any question about the European Union, including
questions such as "What EU grants can my organisation apply for?"
The Europe Direct information relays, with hundreds of information points all over
Europe, can for instance provide help and advice on how to get EU regional funding.
Information on Europe Direct is available
http://europa.eu/europedirect/index_en.htm.
at
the
following
address:
Page: 24 of 58
ANNEX 1
Funding Opportunities’ Fact Sheets
The fact sheets available in this annex present the different funding opportunities
mentioned in this Beginner's Guide in a systematic way.
The fact sheets have a common structure, which consists of the following sections:
Brief description (includes a table addressing the following items: Eligible activities /
Domains of application / Funding / Duration / Time span from application to award /
Type of management);
Who can benefit from this opportunity?
How to proceed?
What are the access conditions
Where can I find detailed information?
Page: 25 of 58
A1.1
FP7 Grants
A1.1.1
Brief Description
The Seventh Framework Programme for Research and Technological Development (FP7)
is the EU instrument specifically targeted at supporting research and development.
Its two major strategic objectives are to strengthen Europe's scientific and technological base
and to support its international competitiveness while promoting research that supports EU
policies.
The programme provides funding through grants to co-finance research, technological
development and demonstration projects.
FP7 consists of four Specific Programmes6:
The Cooperation programme that fosters collaboration among research entities
from academia and industry and research institutes to gain leadership in key
technology areas;
The Ideas programme that supports basic research at the frontiers of science;
The People programme, that supports mobility and career development for
researchers both within and outside Europe;
The Capacities programme that helps develop the capacities that Europe needs to
be a thriving knowledge-based economy.
The Cooperation Specific Programme is most relevant to companies interested in
developing GMES-related products. The information provided hereafter focuses on this
Specific Programme.
Co-funding is the general rule for FP7 grants and the ratio of co-funding depends on
several parameters including the funding scheme (type of grant), the legal status of the
beneficiaries of the grant (e.g. large company, SME, public entity …) and the type of
activity (R&D, demonstration …).
6
FP7 also include a specific component called FP Euratom that supports European research in fusion energy
and in nuclear fission and radiation protection
Page: 26 of 58
Item
Description
Eligible activities
Research, technological development and demonstration.
Domains of
application
The Cooperation programme focuses on ten thematic areas, among
which food, agriculture and fisheries; energy; environment (including
climate change); and space and security may provide opportunities for
GMES related activities.
Funding
Usually, small or medium projects are below €4 million. Large projects
are equal or above €4 million. Each call for project can specify a
maximum budget.
In general, for SMEs, R&D activities may be funded up to 75% of the
eligible costs, while the funding rate is up to 50% for demonstration
activities.
Duration
Applicants can decide on the project duration within certain limits
(depending on the specific rules applying to the call). Typically, small
projects last for 1 year or occasionally less whereas medium to large scale
projects last from 2 to 4 years.
Time span from
application to award
9-11 months in general.
Type of management
Centralised management by the European Commission.
A1.1.2
Who can benefit from this opportunity?
A wide range of research organisations can benefit from FP7 grants: universities, research
centres, multinational corporations, SMEs, public administrations, funding bodies, even
individuals.
As a general principle, FP7 is open to participation from any country in the world.
However, the procedures for participation and the funding possibilities vary for different
group of countries:
Organisations from EU Member States and from countries associated to FP7 (i.e.
Switzerland, Israel, Norway, Iceland, Liechtenstein, Turkey, Croatia, Former Yugoslav
Republic of Macedonia, Serbia, Albania and Montenegro, Bosnia and Herzegovina,
Faroe Islands and the Republic of Moldova) enjoy the broadest rights and access to
funding.
The procedures for participation and the funding possibilities for organisations from
other countries need to be checked.
Page: 27 of 58
A1.1.3
How to proceed?
Every year, an annual Cooperation Work Programme presents the implementation plan
(i.e. the concrete scientific-technical, economic and societal objectives of each activity,
providing both a broad background and the detailed technical content) including a
“roadmap” of the planned calls for proposals to be published7 during the year. Each call
for proposal usually covers a specific research area.
To apply, a project proposal must be submitted in response to one of the abovementioned calls for Proposals.
Proposals need to answer to the call's specifications in terms of topics covered,
partnership, structure, etc. In particular this requires considering a number of typical
questions before submitting a project proposal: What are the main objectives (objectives
must be measurable)? Does it fit the topic described in the call? Why does it have to be
your consortium working on this? Why is the proposed consortium well tailored to the
activities to be performed?
Useful information on the application procedure (including deadline and the place for
submitting proposals) can be found in a Guide for Applicants published with each call. The
average delay from the call release date to the proposal submission deadline is of 3-4
months.
Proposals are then evaluated by a panel of independent evaluators, based on a set of preestablished criteria (e.g. scientific content, implementation, potential impact).
When successfully evaluated, proposals are then discussed between the European
Commission services and proposers. If the negotiation concludes successfully, a grant
agreement between each participant and the European Commission is drawn up and
signed.
A1.1.4
What are the access conditions?
Transnational partnerships from at least three different EU Member States are the rule
for FP7, unless specified differently in the call.
A1.1.5
Where can I find detailed information?
The Community Research & Development Information Service (CORDIS) has established
an information portal dedicated entirely to FP7. The portal provides information enabling
7
Calls for Proposals are announced in the EU's Official Journal but can also be found with the annual work
programme on the FP7 Participant Portal.
[http://ec.europa.eu/research/participants/portal/page/fp7_calls/].
Page: 28 of 58
potential applicants to understand FP7 and its specific programmes, how to participate in
FP7, how to find a call, how to find a document, etc.
The portal is available at: http://cordis.europa.eu/fp7/home_en.html
CORDIS also offers a “CORDIS Partners Service”, which is a free on-line tool designed to
help organisations locate suitable partners for participation to EU-funded research
projects or private collaboration.
The portal is available at: http://cordis.europa.eu/guidance/services/partners_en.html
A network of National Contact Points (NCP) also exists, which provides guidance, practical
information and assistance on all aspects of participation in FP7 in all Member States and
Associated Countries (http://cordis.europa.eu/fp7/ncp_en.html).
Latest information related to FP7 can also be found through the Finance Helpdesk
(www.finance-helpdesk.org).
Page: 29 of 58
A1.2
CIP Grants
A1.2.1
Brief Description
The Competitiveness and Innovation Framework Programme (CIP) aims to foster the
competitiveness of European enterprises. With SMEs as its main targets, the programme
supports innovation activities including eco-innovation, provides better access to finance
(cf. GIF and SMEG instruments for instance) and delivers business support services in the
regions. It encourages a better take-up and use of information and communications
technologies (ICT) and helps to develop the information society. It also promotes the
increased use of renewable energies and energy efficiency.
In particular the programme co-finances pilot and market replication projects on ecoinnovation, sustainable energy or ICT.
The CIP is structured in three specific programmes:
The Entrepreneurship and Innovation Programme (EIP) (that includes specific
support actions on eco-innovation);
The Information Communication Technologies Policy Support Programme (ICT-PSP);
The Intelligent Energy Europe Programme (IEE).
Eco-innovation is understood as any form of innovation aiming at significant and
demonstrable progress towards the goal of sustainable development, through reducing
impacts on the environment or achieving a more efficient and responsible use of
resources, including energy.
Among the three operational programmes that compose CIP, the Entrepreneurship and
Innovation Programme (EIP) is the most relevant to companies developing GMES-related
products. In particular, this programme includes Eco-innovation projects for the testing of
innovative products in real conditions, processes and services aimed at reducing
environmental impacts, preventing pollution or achieving a more efficient use of natural
resources.
Co-funding is the general rule for CIP grants and the ratio of co-funding is dependant on
several parameters including the Specific Programme and the type of project.
Page: 30 of 58
Item
Description
Eligible activities
First applications or market replication of innovative or eco-innovative
techniques, processes, products or practices of European relevance,
which have already been technically demonstrated with success but
which, owing to residual risk, have not yet significantly penetrated the
market. Research activities are therefore not eligible under CIP.
Domains of
application
All domains affected by eco-innovation, energy efficiency, and a wider
uptake and best use of ICT for citizens, governments and businesses.
Funding
The budget depends on the nature of the project (duration, tasks needed
to meet the objectives, size of the consortium, etc.). However, the
average funding for grants is €800 000 for EIP (eco-innovation projects),
€3 million for ICT-PSP and €1 million for IEE.
The EU co-financing rate depends on the CIP specific programme and
project type (it ranges between 50% for IEE and 75% for ICT-PSP).
Duration
Applicants can decide on the project duration within certain limits (the
maximum project length being indicated in the relevant work
programme). Typically, small projects last 1 year and medium to large
scale projects last from 1.5 to 4 years.
Time span from
application to award
6-8 months.
Type of management
Centralised management by the European Commission.
Grants supporting eco-innovation pilots and market replication projects
(through EIP) and IEE are managed by the Executive Agency for
Competitiveness & Innovation (EACI) on behalf of the European
Commission.
A1.2.2
Who can benefit from this opportunity?
Pilot and market replication projects in the area of ICT or eco-innovation are open to
companies, independent of their size, although CIP eco-innovation actions (pilot and
market replication projects, specific support to eco-innovation oriented investment funds,
networks) mainly target SMEs (more than 70% of participants are SMEs). Research
organisations/universities can participate in certain projects, depending on the conditions
described in the respective call for proposals. Similarly NGOs can carry out pilot and
market replication projects if set out in the relevant call for proposals. Public bodies can also
apply for most of the CIP calls for proposals related to networking, innovation policy
development, intelligent energy and ICT.
IEE programme also funds projects in which SMEs can be beneficiaries.
To participate in the CIP, the stakeholders listed above need to be established in Member
States of the European Union. The CIP is also open to other third countries, when
Page: 31 of 58
agreements and procedures allow. The list of countries participating in CIP is provided at
http://ec.europa.eu/cip/faq/index_en.htm#0901262484312773
A1.2.3
How to proceed?
Each specific programme (EIP, ICT-PSP, IEE) has its own annual work programme, which
indicates the exact themes and objectives addressed in the calls for proposals planned to
be published during the year. Information about calls for proposals is published in the
“news” area of the CIP website and on each CIP specific programme website.
To apply, a project proposal must be submitted in response to one of the abovementioned calls for proposals.
Proposals need to answer to the call specifications in terms of content, structure and
costs. Particular attention should be paid to demonstrate the EU dimension of the market
barriers to be tackled, justify the benefits of addressing the subject of the proposal at
European level or explain the contribution of the project to improving the
competitiveness of the EU economy.
Useful information on the application procedure (including deadline and place for
submitting proposals) can be found in the call documentation. The average delay from
the call release date to the proposal submission deadline is of 3.5 months.
Proposals are then evaluated by the EC with the assistance of independent evaluators,
based on three sets of criteria (eligibility, award and selection). Eligibility criteria differ
from one funding scheme to the other. They might also differ between two different calls
within the same funding scheme. These criteria are defined in the respective call
documentation.
A1.2.4
What are the access conditions?
A single organisation may propose pilot and market replication projects if the relevant call
for proposals allows so (this is the case in eco-innovation pilots and market replication
projects).
The minimum number of partners is specified in the relevant call documentation and
depends on the project type. Transnational partnerships in the EU countries are the
general rule for projects.
Page: 32 of 58
A1.2.5
Where can I find detailed information?
CIP (general information, calls for proposals in the “news area”)
(http://ec.europa.eu/cip/index_en.htm)
CIP Programmes (general information, calls for proposals):
The Entrepreneurship and Innovation Programme (EIP),
(http://ec.europa.eu/cip/eip/index_en.htm)
The Information Communication Technologies Policy Support Programme (ICT-PSP),
(http://ec.europa.eu/information_society/activities/ict_psp/index_en.htm)
The Intelligent Energy Europe Programme (IEE).
(http://ec.europa.eu/energy/intelligent/)
The Eco-innovation initiative as part of the CIP.
(http://ec.europa.eu/cip/eip/eco-innovation/index_en.htm)
National Contact Points :
For the ICT-PSP
(http://ec.europa.eu/information_society/activities/ict_psp/contacts/ncp/index_en.
htm)
For the IEE
(http://ec.europa.eu/energy/intelligent/contact/national-contact/index_en.htm)
ICT PSP Help Desk: [email protected]
Page: 33 of 58
A1.3
LIFE+ Grants
A1.3.1
Brief Description
The LIFE+ programme is the European Union’s funding instrument for the environment. It
co-finances pilot or demonstration projects that contribute to the implementation,
updating and development of EU environmental policy (the Sixth Environmental Action
Programme and related Thematic Strategies).
The LIFE+ programme consists of three strands:
LIFE+ Nature and Biodiversity;
LIFE+ Environment Policy and Governance;
LIFE+ Information and Communication.
The first two strands, i.e. LIFE+ Nature and Biodiversity and LIFE+ Environment Policy and
Governance (only component supporting innovation) should provide opportunities to
companies interested in developing GMES-related businesses.
Co-funding is the general rule for LIFE+ grants. Each beneficiary of a grant receives a share
of the EC financial contribution that is proportionate to its financial contribution to the
project budget.
Item
Description
Eligible activities
All activities included after the research phase and before market
replication and that include a prototyping activity (prototype setting-up
and testing).
Domains of
application
Environment
Funding
There is no fixed minimum budget imposed, but in general large and
ambitious LIFE+ proposals with a substantial budget are favoured (in
average in excess of 1M€).
In general, the co-financing rate by EU is up to 50% of the total eligible
project costs. By way of exception, this rate can reach up to 75% of the
total eligible project costs for LIFE+ Nature proposals focusing on
concrete conservation actions for priority species or habitat types of the
Birds and Habitats Directives.
Duration
Most projects last for 2 to 5 years.
Time span from
application to award
13-16 months in average.
Type of management
Centrally managed by the EC.
Page: 34 of 58
A1.3.2
Who can benefit from this opportunity?
Public bodies, private companies (incl. SMEs), NGOs, individuals and any organisation
legally established in the European Union.
A1.3.3
How to proceed?
Each programme strand has its own calls for Proposals, which are published annually, in
general during the first semester of the year (e.g. the 2012 call for proposals was
published on 13th March 2012).
To apply, a project proposal must be submitted in response to one of the calls issued
under LIFE+.
Proposals shall be submitted to the competent national authority of the Member State in
which the project coordinator is established (the list is provided in the call for proposals).
The exact place and relevant time frame for submission are specified in the call
documentation.
Proposals need to answer to the call's specifications in terms of content and structure.
The average delay from the call release date to the proposal submission deadline is of 4-6
months.
Applicants are encouraged to consider the annual national priorities in relation to the call,
if some have been specified by the Member State in which they are established. It must
be noted that an annual guide for the evaluation of LIFE+ project proposals is published
every year. When preparing proposals, applicants should take into account the LIFE+
indicative national allocation per Member State provided in this guide.
Moreover, for each LIFE+ strand, further criteria can be specified in the call relating for
instance to the geographic scope of the project, the proposal’s links to relevant legislation
(e.g. Birds’ and Habitats’ Directives, Communication on Halting the loss of Biodiversity,
Directives connected to the principal objectives set out in annex II of the Regulation).
Proposals are reviewed at EU Member State level. The competent national authority sets
priorities among received proposals and formulates comments taking into account in
particular the national annual priorities.
The proposals are then forwarded to the LIFE+ Unit of the EC Environment Directorate
General, which evaluates them and decides in close coordination with the LIFE+
Committee (made up of representatives of the 27 Member States) upon the list of
projects to be co-financed.
A1.3.4
What are the access conditions?
A project can be proposed by a single organization (beneficiary).
Page: 35 of 58
Projects involving partnerships between several organisations are encouraged when it
brings an added value to the project. However, it is generally recommended not to
involve more than 5 associated beneficiaries in a LIFE+ Environment Policy and
Governance proposal.
Transnational proposals (providing clear evidence of the added-value of the transnational
approach) are favoured.
The project coordinator and (if applicable) any other partner in the project shall provide a
reasonable financial contribution to the project budget. A proposal cannot be submitted if
the financial contribution of any of the beneficiaries to the proposal budget is null.
A1.3.5
Where can I find detailed information?
All the necessary information on the LIFE+ programme can be found on the LIFE
Programme portal operated by the European Commission:
http://ec.europa.eu/environment/life/index.htm
This portal provides in particular information about:
Annual call for proposals, application packages including application and evaluation
guides, national priorities and FAQ (Menu "FUNDING/LIFE+);
LIFE+ Strands (Item "LIFE by theme");
Relevant national authorities (Menu "Contact");
Projects (Items "Project database", "Best projects" and "Project publication").
Annual work programme on grants in the environment policy area for 2012 can also be
found at http://ec.europa.eu/environment/funding/pdf/awp_2012.pdf
In addition, information sessions for potential LIFE+ applicants are organized by the EC in
each EU Member State, in the national language (in general in May, June and July).
Page: 36 of 58
A1.4
ERDF Grants
A1.4.1
Brief Description
SMEs can get financial support to co-finance their investments through the EU’s
Structural Funds and in particular the European Regional Development Fund (ERDF).
Structural Funds aim to reduce disparities in the development of regions and to support
social and economic cohesion within the European Union. Structural Funds are allocated
to the different thematic programmes and community initiatives implemented in the
regions. Each Member State has its own operational programme(s), which can be of
different types: national, regional, multiregional, as well as cross-border, transnational
and interregional co-operation programmes. Their number and types depend on each
Member State.
Item
Description
Eligible activities
RTD, innovation, technology transfer, information and
communication technologies, human resources development and
business development.
Domains of application
Domains of application depend on the strategy and priorities set in
the relevant operational programme.
Funding
Funding rules depend on each operational programme.
Duration
The applicant can decide on the project duration within certain
limits. The duration depends on the relevant operational
programme and type of activity. In any case, the funding cannot
continue beyond 2015.
There is a 3 to 5 year minimum time during which an investment or
jobs created by SMEs have to be maintained after the end of the
support and the project cannot undergo substantial modifications
affecting its nature or its implementation conditions.
Time Span from Proposal
submission to Contract
Award
A quick funding decision may be possible but it depends on the
relevant operational programme.
Type of management
Each MS has its own operational programme(s) and appoints for
each programme a Managing Authority (at national, regional or
another level), which will inform potential beneficiaries, select the
projects and generally monitor their implementation.
The EU and the Member States contribute to the programmes
funding.
Page: 37 of 58
A1.4.2
Who can benefit from this opportunity?
Virtually all research and innovation actors, i.e. public bodies, private sector organisations
(especially SMEs), universities, associations, NGOs and voluntary organisations can apply.
However as it may be linked to the strategy and priorities set in each operational
programme, it is recommended to contact the relevant Managing Authority for more
information.
A1.4.3
How to proceed?
To apply, a project proposal needs to be submitted in the frame of one of the operational
programmes of the Member State in which the applicant is established. It has to be
submitted to the relevant Managing Authority in charge of it and according to its
application procedure. Some have an on-going procedure. Others accept applications at
certain times only. The project application must meet the selection criteria and
investment priorities of the programme.
See the website of the relevant managing authority to find out calls for proposals, the
eligibility and funding conditions, project selection criteria and award procedures.
There is no minimum size for projects. What counts is their European added value, their
impact on employment, their innovative nature and whether they contribute to your
region's economic competitiveness.
The Managing Authority of the operational programme will evaluate projects and decide
whether to grant funding.
The list of the managing authorities of structural funds in every region is published at:
http://ec.europa.eu/regional_policy/manage/authority/authority_en.cfm.
A1.4.4
What are the access conditions?
Projects involving several partners from the same region/country are the norm even
though in principle projects involving one single beneficiary are possible.
Projects (and financing rules) involving partners from other Member States of the
European Union may be possible but it depends on the operational programme and its
Structural Fund objectives (i.e. “convergence”, “Regional competitiveness and
employment", “European territorial cooperation”). Partnership conditions depend on the
operational programme (e.g. they will be different in the frame of a regional,
multiregional, cross-border, transnational and interregional co-operation programme). It
is therefore recommended to consult the relevant operational programme for details.
Page: 38 of 58
A1.4.5
Where can I find detailed information?
The list of the managing authorities of structural funds in every region is published at:
http://ec.europa.eu/regional_policy/manage/authority/authority_en.cfm.
Eligible areas in the EU under the Convergence Objective and the European
Competitiveness
and
Employment
Objective
are
presented
at:
http://ec.europa.eu/regional_policy/atlas2007/index_en.htm.
The MS operational programmes adopted by the EC are published at:
http://ec.europa.eu/regional_policy/country/prordn/index_en.cfm. Each programme
presents the priorities selected by the national and regional authorities for the
programme period (2007-2013).
Information
on
the
Structural
Funds
and
http://ec.europa.eu/regional_policy/thefunds/regional/index_en.cfm.
the
ERDF:
Page: 39 of 58
A1.5 EAFRD Grants
A1.5.1
Brief Description
The European Agricultural Fund for Rural Development (EAFRD) offers funding
possibilities at national and/or regional level to companies operating in fields that
contribute to fulfil the EU Rural Development Policy strategic objectives. These objectives
address three different themes (also known as "thematic axes"):
Improving the competitiveness of the agricultural and forestry sector;
Improving the environment and the countryside;
Improving the quality of life in rural areas and encouraging diversification of the
rural economy.
Companies willing to develop GMES-based products could possibly obtain support
through the funding of projects addressing the second axis (i.e. "Improving the
environment and the countryside).
Indeed, although most projects funded through EAFRD focus on the creation or
modernization of infrastructures (e.g. creation of water tanks to increase protection
against forest fires) or equipment (e.g. replacement of stables in a farm), a few examples
of previous projects show that projects can also include activities which are more relevant
to GMES, such as the setting-up of geographical information systems for environmental
monitoring purposes.
In practice, each Member State of the European Union defines its national strategy and
operational priorities according to its own situation. Based on this national strategy and
operational priorities, each Member State then establishes one or several Rural
Development Programme(s) (RDPs). For instance, a Member State can have a single
programme for its entire territory or a set of regional programmes. RDPs (and the
allocated Community resources8) are discussed with and approved by the European
Commission.
Projects proposed in view of obtaining an EAFRD grant must be in line with the objectives
of the Rural Development Programme(s) of the Member State or region in which the
applicant is located.
8
Community resources can be complemented by national, regional and private co-financing.
Page: 40 of 58
Item
Description
Eligible activities
All kinds of activities are eligible provided that the results and benefits of
these activities are in line with the priorities established in the RDP of the
Member State or region where the activities will be implemented.
Domains of
application
Environment, biodiversity preservation, water management, climate
change mitigation, renewable energy.
Funding
Project funding conditions (e.g. max project budget and co-financing
rate) depend on the RDP.
Duration
The applicant can in principle decide on the project duration but it
depends on a number of criteria and the content of the relevant RDP.
The relevant Managing Authority should be contacted for more
information.
Time span from
application to award
A quick funding decision may be possible but it depends on the relevant
RDP.
Type of management
RDPs are managed at national or regional level. This includes in particular
the selection, control and assessment of projects.
For each operational programme, the Member State appoints a
Managing Authority (a national, regional or local public authority or
public/private body).
A1.5.2
Who can benefit from this opportunity?
In principle, all research and innovation actors (e.g. private companies, including SMEs,
research organisations/universities, NGOs, public authorities) can apply depending on the
conditions and topics of the RDP. It is therefore recommended to consult the RDPs in
each Member State or region for details.
A1.5.3
How to proceed?
To apply, a project proposal must be submitted in response to a call for proposals issued
under a Rural Development Programme. The application process may differ between
countries and RDPs.
The first step is therefore to contact the Managing Authority of the relevant RDP, or to
look for information on the Managing Authority's website about calls for proposals, as
well as the eligibility and funding conditions and award procedures.
The project selection criteria for each Rural Development Programme are agreed by each
RDP’s Monitoring Committee and are published (e.g. on Managing Authority websites).
Page: 41 of 58
Projects are evaluated according to these criteria. A research or innovation project
submitted for funding under a RDP will in addition be judged on its relationship to the
objectives and priorities set in the programme and its scope given the context of the
measure under which support is provided.
A1.5.4
What are the access conditions?
Access conditions may vary depending on the Rural Development Programme in each
Member State or region.
A1.5.5
Where can I find detailed information?
The
EC
European
Network
for
Rural
Development
website
(http://enrd.ec.europa.eu/en/home-page_en.cfm) provides detailed information in
particular on:
The EU Rural Development
action/en/policy-in-action_en.cfm)
Policy,
(http://enrd.ec.europa.eu/policy-in-
EU
Strategic
Guidelines,
(http://enrd.ec.europa.eu/policy-in-action/ruraldevelopment-policy-overview/eu-strategic-approach/en/eu-strategicapproach_en.cfm)
National Strategies, National and Regional Programmes (RDPs), Managing
Authorities and Paying Agencies as well as National Rural Networks (interactive
map) (http://enrd.ec.europa.eu/en/home-page_en.cfm)
National Rural Networks (NRNs) bring together a variety of rural stakeholders to promote
communication and information exchange at regional, national and European level. They
provide an important link at Member State level between the national administrations
and organisations involved in rural development.
Page: 42 of 58
A1.6
GIF (Venture Capital & Risk Capital)
A1.6.1
Brief Description
The High Growth and Innovative SME Facility (GIF) is an instrument specifically tailored to
SMEs with the objective to contribute to the establishment and financing of SMEs and the
reduction of the equity and risk capital market gap on the one hand, and to support
innovative SMEs with high growth potential, in particular those undertaking research,
development and other innovation activities on the other hand.
GIF consists of two investment windows:
GIF 1, which covers early stage (seed and start-up) investments;
GIF2, which covers expansion stage investments.
In both cases, the support is provided through a number of financial intermediaries,
which are selected within the Member States of the European Union and provide quasiequity or equity to SMEs (there is no direct financial support to SMEs by the European
institutions).
By sharing risk and reward with these financial intermediaries, the programme provides
important leverage for the supply of equity to innovative companies.
For GIF1, financial intermediaries are venture capital funds (e.g. early stage funds, funds
operating regionally, funds focused on specific sectors, technologies or research and
technological development and funds linked to incubators). The EU investment
represents 10 to 25% of total commitments to the intermediary (it can reach up to 50% in
some specific cases).
For GIF2, financial intermediaries are risk capital funds. The EU investment represents 7.5
to 15% of total commitments to the intermediary (it can reach up to 25% in some specific
cases).
In both cases, the amount committed to a single intermediary cannot exceed
EUR 30 million.
Some of the financial intermediaries implementing GIF are generalist while others are
very selective about the businesses in which they are ready to invest.
GIF belongs to the Entrepreneurship and Innovation Specific Programme (EIP) of the EU
Competitiveness and Innovation Framework Programme (CIP). GIF is operated by the
European Investment Fund (EIF) on behalf of the European Commission.
Page: 43 of 58
Item
Description
Eligible activities
Eligible activities include technological development, innovation
(including eco-innovation), technology transfer and cross-border
expansion of business.
Domains of
application
Typical areas of investment comprise information technology and life
science/biotechnology fields.
Funding
Investments under GIF are typically in the order of millions of euro.
Maximum level (and when relevant minimum level) of financial
transactions depend on the financial product and the financial
intermediary.
Duration
The beneficiary can decide on the duration of its financial transaction in
so far as it respects the minimum and maximum length set for the
financial product by the financial intermediary.
Time span from
application to award
In principle, a quick funding decision can be obtained. This however
depends on each financial intermediary.
Type of management
The European Investment Fund (EIF) is mandated by the European
Commission to implement and manage the GIF on behalf of the European
Union.
The concrete implementation (investment decision and provision of
equity to SMEs) is made by financial intermediaries selected by the EIF.
A1.6.2
Who can benefit from this opportunity?
Innovative SMEs can benefit from GIF provided that they are established and operating in
a participating country9.
For GIF1, SMEs must have a high growth potential in their establishment or early stages.
Furthermore, they must be established or operating for not more than ten years (at the
ratification date of the respective agreement with the fund).
For GIF2, SMEs must have a high growth potential in their expansion stage.
Although in principle GIF also addresses very young companies, available statistics on the
SMEs having benefited from GIF show that a majority of companies were older than 5
years (53%). A majority of GIF beneficiaries (also 53%) were in their expansion stage.
9
"Participating countries" include the EU Member States as well as a number of countries among which
Norway, Liechtenstein, Iceland, Croatia, Serbia, FYROM, Turkey. An updated list of the participating
countries can be found on EIF’s website. (www.eif.org)
Page: 44 of 58
A1.6.3
How to proceed?
SMEs wishing to apply for an equity investment need to contact the relevant financial
intermediary in their country. The list of intermediaries is published on the Access to
Finance website.
(http://www.access2finance.eu/en/France/venture_capital.htm)
Information about the application procedure, schedule, selection criteria, etc. shall be
gathered directly through the relevant financial intermediary.
In principle, applications can be made on a continuous basis. However, each fund has an
investment period deadline. This information is provided with the list of funds on the
Access to Finance website.
(http://www.access2finance.eu/en/Attachments/List_of_Deals_20_09_2011.pdf).
All investment decisions are based on standard commercial criteria. It is up to the
financial intermediary to decide whether or not to invest in particular SMEs.
A1.6.4
What are the access conditions?
Specific conditions to be fulfilled need to be checked with the relevant financial
“intermediary”.
A1.6.5
Where can I find detailed information?
CIP Financial Instruments (general information)
(http://ec.europa.eu/enterprise/policies/finance/cip-financial-instruments/)
Information on EU finance for SMEs, in particular on Venture Capital finance and relevant
financial intermediaries (venture and risk capital funds) in CIP eligible countries (Access to
Finance Website).
(http://www.access2finance.eu/en/France/venture_capital.htm)
Information about raising early stage finance can be found at the European Commission’s
Gate2Growth website: http://entrepreneurs.gate2finance.com/
Page: 45 of 58
A1.7
SMEG (Loan Guarantees)
A1.7.1
Brief Description
Thanks to the guarantees provided by the SME Guarantee Facility (SMEG), SMEs can have
a facilitated access to loans.
The SMEG facility provides co-, counter- and direct guarantees to selected financial
intermediaries in the EU countries providing SMEs with loans, mezzanine finance and
equity (there is no direct financial support to SMEs by the European institutions).
These intermediaries can be public guarantee institutions, mutual guarantee
organisations, microfinance institutions and commercial or publicly owned or controlled
banks.
SMEG addresses mid-to long-term financing, such as loans and/or lease transactions as
well as micro-loan transactions not exceeding €25 000.
The SMEG facility comprises four business lines:
Guarantees for loans, which aim to reduce the particular difficulties SMEs face in
accessing finance either due to the perceived higher risk associated with
investments in certain knowledge-related activities such as technological
development, innovation and technology transfer, or due to a lack of sufficient
collateral.
Guarantees for microcredits, which aim to encourage financial institutions to play a
greater role in the provision of loans of a smaller amount which would normally
involve proportionately higher unit handling costs for borrowers with insufficient
collateral.
Guarantees for equity and quasi-equity, which aim to provide seed capital and/or
capital in the start-up phase, as well as mezzanine financing, in order to reduce the
particular difficulties which SMEs face because of their weak financial structure, and
those arising from business transfers.
Securitisation guarantees, which aims to mobilise additional debt financing for
SMEs.
As for GIF, SMEG belongs to the Entrepreneurship and Innovation Specific Programme
(EIP) of the EU Competitiveness and Innovation Framework Programme (CIP). SMEG is
operated by the European Investment Fund (EIF) on behalf of the European Commission.
Page: 46 of 58
Item
Description
Eligible activities
SMEG can address investment in tangible and intangible assets, business
transfers, working capital, or innovation activities, such as technological
development and the acquisition of licences.
Domains of
application
Any domain covered by the EU Competitiveness and Innovation
Framework Programme.
Funding
Investments under SMEG are typically in the order of thousands of euro
(for micro-credits, investment cannot exceed €25 000).
Maximum level (and when relevant minimum level) of financial
transactions depend on the financial product and the financial
intermediary.
Duration
The beneficiary can decide on the duration of its financial transaction in
so far as it respects the minimum and maximum length set for the
financial product by the financial intermediary.
For mid-to long-term financing, the term of transactions is at least 18
months. Depending on the financial intermediary, long term bank loan
financing is usually available with duration up to ten years.
For micro-loan transactions, the term of transactions is at least 12
months.
Time span from
application to award
In principle, a quick funding decision can be obtained. However this
depends on each financial intermediary.
Type of management
The European Investment Fund (EIF) is mandated by the European
Commission to implement and manage the SMEG Facility on behalf of
the European Community.
The concrete implementation (investment decision and provision of
equity to SMEs) is made by financial intermediaries selected by the EIF.
A1.7.2
Who can benefit from this opportunity?
In general, any SME can benefit from SMEG provided that it is established and operating
in a participating country10.
In the specific case of the business line "Guarantees for microcredits", it is only accessible
to micro-enterprises, which means, enterprises which employ fewer than 10 persons and
10
"Participating countries" include the EU Member States as well as a number of countries among which
Norway, Liechtenstein, Iceland, Croatia, Serbia, FYROM, Turkey. An updated list of the participating
countries can be found on EIF’s website. (www.eif.org)
Page: 47 of 58
which have an annual turnover and/or annual balance sheet total not exceeding EUR 2
million.
In the specific case of the business line "Guarantees for equity and quasi-equity", SMEs
must be in their seed or start-up phase or, if already founded, they must have been
established or operating for less than ten years.
According to the available statistics on the SMEs having benefited from SMEG, a majority
of companies (59%) are younger than 5 years. In the subgroup of beneficiaries of the
SMEG’s micro credit window, the share of the firms younger than 5 years reaches 71%.
A1.7.3
How to proceed?
SMEs wishing to apply for an EU-backed loan need to contact the financial intermediary in
their country that provides the relevant financial product. The list of financial
intermediaries and the type of financial products proposed by each are published on the
Access to Finance website. (http://www.access2finance.eu/).
Information about the application procedure, schedule, selection criteria, etc. shall be
gathered directly through the financial intermediary.
In principle, applications can be made on a continuous basis.
All investment decisions are based on standard commercial criteria. It is up to the
financial intermediary to decide whether or not to invest in particular SMEs.
A1.7.4
What are the access conditions?
Specific conditions to be fulfilled need to be checked with the relevant financial
intermediary.
A1.7.5
Where can I find detailed information?
CIP Financial Instruments (general information)
(http://ec.europa.eu/enterprise/policies/finance/cip-financial-instruments/)
Information on EU finance for SMEs, in particular on EU-backed loans and their relevant
sources (financial intermediaries) in CIP eligible countries (Access to Finance Website).
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A1.8
RSI (Loan Guarantees)
A1.8.1
Brief Description
The Risk-Sharing Instrument (RSI) targets Research-intensive & innovative SMEs & smaller Midcaps and enables them to access loans and leases.
RSI does not provide financing directly to SMEs or small Mid-caps. It provides financial
intermediaries established in EU Members States or Associated Countries (banks and
other financial or credit institutions duly authorised to carry out lending or leasing
activities) with guarantees. In turn, these guarantees enable financial intermediaries to
extend loans and financial leases, thus allowing them to lend more to companies and to
do so at more attractive rates.
In practice, RSI enables SME and smaller Mid-caps to get access to loans and leases ranging
from EUR 25 000 to EUR 7.5 million.
RSI was jointly created early 2012 by the European Commission, the European Investment
Bank (EIB) and the European Investment Fund (EIF). EIF is responsible for the operational
management of RSI.
RSI is a component of the Risk-Sharing Finance Facility (RSFF) of the EU 7th Framework
Programme (FP7). The RSFF funds for risk coverage for the period 2007-2013 are jointly
provided by the EC (through FP7) and the European Investment Bank (EIB). These
contributions translate into billions of additional financing available to innovative
companies and research communities.
Item
Description
Eligible activities
Investments in assets (tangible or intangible) and/or working capital.
Domains of
application
RSI supports Research, Development and Innovation activities
Funding
Loans and leases are between €25 000 and €7.5 million (the maximum
amount depends on the Guarantee Agreement signed between the
financial intermediary and the EIF and thus may be lower).
Duration
Loan periods are from 2 to 7 years, except in the case of a SME
transaction financing working capital whereby the minimum duration
shall be of 12 months provided that it contains at least one year
renewable option. In practice, it depends on transaction maturity (min
and max) specified in the Guarantee Agreement signed between the
financial intermediary and the EIF.
Time span from
application to award
-
Type of management
RSI is managed by the European Investment Fund (EIF).
Page: 49 of 58
A1.8.2
Who can benefit from this opportunity?
Research-based and innovative SMEs and Small Mid-Caps established and operating in
one or several of the EU 27 Member States or Associated Countries eligible under the
RSFF (such as Iceland, Liechtenstein, and Norway, Switzerland, Israel, Turkey, Croatia, the
former Yugoslav Republic of Macedonia and Serbia, Albania and Montenegro, Bosnia &
Herzegovina, Faroe Islands and Moldova).
Other countries may become associated during the course of FP7 subject to certain
conditions. The up-to-date list will be published in the RSI section of the EIF’s website.
(http://www.eif.org/what_we_do/guarantees/RSI/index.htm?lang=-en)
A1.8.3
How to proceed?
SMEs wishing to apply for a loan/lease transaction need to contact the relevant financial
intermediary participating in the RSI Facility in order to gather information about the
application procedure, schedule, eligibility criteria, etc.
The up-to-date list of RSI Financial “intermediaries” should be published soon in the RSI
section of the EIF’s website (selection process kicked off in 2012).
(http://www.eif.org/what_we_do/guarantees/RSI/index.htm?lang=-en)
General eligibility criteria to comply with are shared in 3 different categories (RSI
eligibility criteria, SME eligibility criteria and SME transaction eligibility criteria) some of
them requiring being met at all times, others only on the signing date of the SME
transaction. Other specific eligibility criteria may have to be fulfilled as specified in the
relevant Guarantee Agreement signed between the Financial Beneficiary and the EIF.
It is entirely up to the financial intermediary to examine loan/lease applications and
decide whether or not to enter into the loan/lease with the applicant organisation.
A1.8.4
What are the access conditions?
Specific conditions to be fulfilled need to be checked with the relevant financial
intermediary.
Page: 50 of 58
A1.8.5
Where can I find detailed information?
RSI (general Information including soon the list of RSI Financial Intermediaries)
(http://www.eif.org/what_we_do/guarantees/RSI/index.htm?lang=-en).
RSFF (general information)
On the EIB website
(http://www.eib.org/products/loans/special/rsff/index.htm?lang=en)
On the European Commission website
(http://ec.europa.eu/invest-in-research/funding/funding02_en.htm)
FP7 National Contact Points in Member States and Associated Countries
(http://cordis.europa.eu/fp7/ncp_en.html)
Page: 51 of 58
A1.9
JEREMIE (Equity, Loans and Guarantees)
A1.9.1
Brief Description
The Joint European Resources for Micro and Medium Enterprises (JEREMIE) initiative
offers EU Member States, through national or regional Managing Authorities, the
opportunity to use part of their EU Structural Funds to finance SMEs by means of equity,
loans or guarantees.
The implementation of JEREMIE by a Member State or region requires that a "Holding
Fund" is created. Depending on the decision of the Managing Authority, the Holding Fund
can be managed either directly by the European Investment Fund (EIF) or by a national
institution. This allows the Managing Authority to delegate some of the operational tasks
to appropriate professionals.
Acting as an umbrella fund, the Holding Fund can then establish partnerships with a wide
spectrum of local financial intermediaries such as SME finance operators, venture capital
funds, loan funds, technology transfer vehicles, micro-finance providers, banks and
guarantee funds. These intermediaries are responsible for making funds available to SMEs
through a tailor-made portfolio of financial instruments providing loans and equity
participation.
The Holding Fund has a revolving nature, which means that it receives re-payments from
financial intermediaries (e.g. when loans are reimbursed), thus enabling re-investment in
the SME sector.
Moreover, the structural funds engaged through JEREMIE may be complemented either
at the EU Member State Holding Fund level by additional capital from financial
institutions, and/or at the level of the financial instruments offered by intermediaries
through public/private co-financing.
JEREMIE has been developed jointly by the European Commission and the European
Investment Fund, with the European Investment Bank, in the context of the European
Regional Development Fund (ERDF). However, JEREMIE has been conceived as an
optional mechanism and is therefore not available in all Member States and regions. To
date, only a limited number of JEREMIE Funding Agreements have been signed11.
11
The list of funding agreement sis provided in the JEREMIE leaflet available in the JEREMIE section of the
EIF website (http://www.eif.org/what_we_do/jeremie/index.htm)
Page: 52 of 58
Item
Description
Eligible activities
Creation of new business or expansion of existing ones; access to
investment capital by enterprises to modernise and diversify their
activities, develop new products, secure and expand market access;
business oriented research and development, technology transfer,
innovation and entrepreneurship; technological modernisation of
productive structures to help reach low carbon economy targets;
productive investments which create and safeguard sustainable jobs.
Domains of
application
With the exception of sectors excluded by the ERDF regulation, any
sector can be addressed through JEREMIE.
Specific objectives and market priorities can be defined by the Managing
Authorities.
Funding
Funding depends on the financial instruments provided by financial
intermediaries.
Duration
Duration depends on the financial instruments provided by financial
intermediaries.
Time span from
application to award
Depends on financial intermediaries.
Type of management
National or regional management. A Holding Fund Manager manages
JEREMIE on behalf of the (national or regional) Managing Authority. The
Holding Fund Manager selects the financial intermediaries and monitors
the programme.
A1.9.2
Who can benefit from this opportunity?
All SMEs registered in a EU Member State or region having signed a JEREMIE Funding
Agreement with the European Investment Fund (EIF).
Some additional restrictions may be defined by financial intermediaries (e.g. age of the
SME in case of loan).
A1.9.3
How to proceed?
SMEs are invited to submit investment proposals to the relevant financial intermediary,
which will make final investment decisions.
Information about the application procedure, schedule, selection criteria, etc. shall be
gathered directly through this financial intermediary.
A1.9.4
What are the access conditions?
Page: 53 of 58
Specific conditions to be fulfilled need to be checked with the relevant financial
intermediary.
A1.9.5
Where can I find detailed information?
General Information on JEREMIE on the EIF website.
(http://www.eif.org/what_we_do/jeremie/index.htm)
General Information on JEREMIE on the EC website.
(http://jeremie.europa.eu)
JEREMIE Representative Offices.
(http://www.eif.org/what_we_do/jeremie/External_Offices/index.htm)
Page: 54 of 58
A1.10
EIB Loans
A1.10.1 Brief Description
The European Investment Bank (EIB) provides loans to SMEs through financial
intermediaries (local partner banks).
EIB lends money to financial intermediaries at keen rates to support their lending to small
businesses. These financial intermediaries are requested by the EIB to match the funds
provided by its loan with at least the same amount, thus creating a leverage effect. They
are also obliged to pass on a financial benefit to the beneficiary SMEs, which appears in
most of the funding in the form of a favourable interest rate (i.e. cheaper credit).
Item
Description
Eligible activities
All tangible and intangible investments necessary for a small business to
develop, such as purchases of plant and equipment, R&D expenditure,
building up or taking over distribution networks in domestic or other
markets within the EU, company transmission in order to safeguard
economic activity (for a buy-out cost of not more than EUR 1 million).
Land purchases can be included if they are essential to the project. The
purchase of farmland is totally excluded.
Loans cannot be for short-term working capital needs.
Domains of
application
All economic sectors (except for a limited number of exclusions12)
Funding
EIB loans can support investment for any amount ranging from very small
projects to investments costing up to EUR 25 million.
The EIB’s contribution can be up to 100% of the investment, with a
maximum of EUR 12.5 million.
Duration
Loans must be for a minimum of 2 years and are generally up to 12 years.
The actual length of the loan will depend on the economic life of the
project financed.
Time span from
application to award
-
Type of management
Loans for SMEs are managed by financial intermediaries (commercial
banks) that have received an EIB credit line.
12
Excluded activities include the production of weapons, activities in violation of human rights, etc. A
detailed list is available at http://www.eib.org/about/documents/excluded-activities-2011.htm.
Page: 55 of 58
A1.10.2 Who can benefit from this opportunity?
All autonomous SMEs with fewer than 250 employees in the 27 EU Member States are
eligible, as are MidCaps (autonomous enterprises with less than 3,000 employees). The
subsidiaries or holding companies of groups with more than 250 employees are not
eligible.
A1.10.3 How to proceed?
Loan applications have to be submitted to the financial intermediaries (commercial
banks) that have received an EIB credit line.
(http://www.eib.org/projects/topics/sme/intermediaries/europe.htm)
Applicants will be subject to each financial intermediary's own lending criteria, credit
assessments, and terms and conditions, which may vary.
The financial intermediary who bears the credit risk is entirely responsible to decide
whether or not to grant the loan.
A1.10.4 What are the access conditions?
Specific conditions to be fulfilled need to be checked with the relevant financial
intermediary.
A1.10.5 Where can I find detailed information?
General information on EIB Loans for SMEs
(http://www.eib.org/projects/topics/sme/intermediaries/index.htm)
List of financial “intermediaries by EU MS” (interactive map)
(http://www.eib.org/projects/topics/sme/intermediaries/europe.htm)
Page: 56 of 58
ANNEX 2
A2.1
Sources
Bibliography
Documents
Documents
Dates
European Union Support Programmes for SMEs, An
overview of the main funding opportunities available to
European SMEs.
-
-
–
–
-
-
Page: 57 of 58
Sources
Documents
Dates
-
-
–
–
A2.2
Subject
Websites
URL
-
-
-
-
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