Businesses: How to Apply for EU Funding?

In today's world, innovation and economic development are essential. The European Union has established funding programs to support these initiatives and help businesses thrive. This article guides you through the various types of grants, subsidies, and calls for proposals available, their main objectives, how to apply for them, and, most importantly, how they can boost your business's growth.

Grants, subsidies, and calls for proposals: what are we talking about?

To begin with, you may have heard of Horizon Europe, which is the European Commission’s main funding program. These programs provide financial resources to support R&D&I ecosystems and businesses, particularly in certain priority sectors. They aim to address the major challenges and issues of our time, particularly those related to the green and digital transitions.

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_{The European Commission is implementing Horizon Europe with European funding for the 2021–2027 period.}

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Calls for proposals are the incentive-based component of major European policies designed to steer research and innovation through financial incentives. They function as sets of specifications—that is, a set of conditions that project proposals must meet in order to be eligible for a share of the funding, given that these calls are generally competitive in nature.

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For projects selected through calls for proposals, funding is provided in the form of grants, loans, and equity investments:

• The aid includes loans and repayable advances that must be repaid.
• Grants do not need to be repaid
• Equity investments represent a direct investment in a company's capital.

The purpose of European funds

European Union funding is primarily aimed at stimulating economic development and innovation within the European Union. It is designed to support initiatives that contribute to the achievement of the EU’s strategic priorities.

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These priorities include:

• Innovation and research: To make Europe smarter, the funds help finance projects that promote technological innovation.
• Support for SMEs: Small and medium-sized enterprises (SMEs) are at the heart of the European economy. The funds support their growth and development.
• Territorial cohesion: By reducing development disparities between regions and strengthening cooperation among businesses, research institutions, and governments, the European Union aims to boost Europe’s competitiveness.

Why take advantage of this funding?

Funding is available regardless of the technological maturity of the project you wish to finance: from basic research through the Marie Sklodowska-Curie Actions (MSCA) to accelerating the market launch of disruptive innovations via the European Innovation Councils (EICs); and including industrial research and the experimental development of new technologies through the numerous calls for proposals under the Horizon Europe program.

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They therefore offer a number of key benefits for the growth of your business:

• First and foremost, this funding helpsreduce the cost of innovation, research, and developmentprojects.
• However, the financial aspect is not the only benefit. By participating in these programs, you become part of a network of European stakeholders, thereby fostering the transfer of expertise and the establishment of strategic partnerships.
• In addition, securing European funding can enhance your company’s credibility with partners and investors by demonstrating the quality and ambition of your projects.

Who is eligible for this government assistance?

SMEs, mid-sized companies, large corporations, research labs, associations, universities… There’s something for everyone! European funding programs, more so than national ones, serve a wide range of objectives and target diverse groups. In fact, it isthe scope and maturity of your project —rather than the nature of your organization—that determines the types of funding you should seek.

Who benefits most from this European Union aid?

In 2023, France is the third-largest recipient of European Union funding in financial terms, behind Germany and the United Kingdom.

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In terms of business types, SMEs remain the focus, as they are central to the EU’s growth strategies and account for 85% of jobs in Europe, along with large public research institutions, which serve as the scientific engine driving innovation based on scientific excellence.

How can you obtain this funding from the European Union?

To obtain this funding, you should first research the available funding programs that are relevant to your project. It is important to choose the one that best meets your needs.

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It is also important not to overlook the formation of a consortium of key partners, an essential component of responding to a call for European project proposals. This phase is often underestimated by lead organizations seeking to submit a project proposal.

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Next, you will need to submit an application following the specific procedure for each program, which generally involves submitting a detailed application package and a project plan. Eligibility criteria may vary by program, but they may include the nature of your organization, the scope of your project, and its alignment with the EU’s strategic objectives.

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To facilitate this process, the EU provides a range of support tools, such as information platforms and practical guides.

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Finally, you can also hire specialized consultants to assist you with this process.

What are the main sources of funding?

Funding is administered by various managing authorities, which select, finance, and oversee the implementation of funded projects. The leading European body in this area is the European Commission and its agencies (REA, CINEA, etc.), which manages the Horizon Europe program but works in collaboration with numerous organizations, particularly public ones, in member states. For example, regional councils manage ERDF (European Regional Development Fund) grants for territorial cohesion, and national agencies such as the ANR (National Research Agency) or the BPI coordinate funding programs in partnership with the European Union.

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The main sources of European Union funding for associations, research centers, universities, and businesses of all sizes therefore include:

• The Horizon Europe program, dedicated to research and innovation (EIC Pathfinder, EIC Accelerator, EIC Transition)
• The European Regional Development Fund (ERDF), managed by regional councils, which promotes territorial cohesion.
• Funding programs are coordinated by national agencies such asthe ANR (National Research Agency),ADEME (French Environment and Energy Management Agency), and BPI (Public Investment Bank), as well as by regional and departmental authorities.

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There are also specific programs, such as:

• Innovfin, designed for innovative companies.
• COSME, for the competitiveness of businesses and SMEs.
• Eurostars, for R&D projects carried out in collaboration between SMEs from different European countries.
• The Employment and Social Innovation (EaSI) program, which provides microfinance support.

What are the amounts of the grants available from the European Union in France?

Once again, this depends largely on the calls for proposals and the status of your organization (laboratory, company, or public institution). However, calls for proposals under Pillar II of the Horizon Europe program typically offer funding ranging from €3 million to €10 million per consortium, with an unbeatable funding rate ranging from 70% to 100% depending on the type of company. Thanks to the EIC program (Pillar III for SMEs and mid-caps), funding can even reach up to €15 million through an EIB investment in the company’s equity!

Dynergie, the firm that helps you secure European grants

Consulting firms offer the services of an expert to assist you in communicating with management and funding authorities.

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What sets Dynergie apart in this ecosystem when it comes to securing EU funding? Experts with a scientific background (engineers, PhDs, MSc holders), economic expertise (MBAs, professional experience at BPI, in industry, in entrepreneurship, etc.), a genuine interest in the issues at hand, and, as a result, an extraordinary level of commitment.

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If you'd like to learn more, please check out our offerings on this topic.