Financing for companies for the preparation of Horizon and EDF projects

Preparatory funding is for companies that are preparing an extensive consortium project in which the Finnish partner will play a significant role. The application must describe the consortium required for the EU project, which generally means that the applicant has known partners from at least three EU or associated countries.

1. The total cost of an EU project must be at least €3 million.
2. Business Finland can accept the costs of a project in the preparation phase as a maximum of 5% of the total costs of the participant in question recorded in the application for the EU project in question (e.g. €1 million = €50,000).
3. Business Finland's share of funding is 75 per cent of the costs, but no more than €60,000.
4. The costs of preparing an EU application can be accepted as part of the preparation costs.

Disbursement of funding

1. No advance payment is made in this financial service.
2. You can account for the costs of Business Finland's preparatory project once the EU application has been evaluated. An EU application must meet the thresholds defined in each EU programme in order for the grant to be paid:
   1. Horizon Europe: at least 3 points for each of the three evaluated components (excellence, impact, implementation).
   2. EDF (European Defence Fund): research projects at least 30 points, development projects at least 37 points.
3. As a report for Business Finland, a brief description of the prepared EU project, a cost statement and an EU evaluation report are sufficient.
4. An auditor's statement is not required.

What is required of your company?

1. Personnel in Finland at least 2 person-years, of which at least one must be a full-time employee
2. Net financial assets in the balance sheet at least equal to the total costs of the preparatory project
3. This funding is de minimis aid. Your company can receive a maximum of €300,000 in de minimis aid over a three-year period. De minimis financing of companies belonging to the same group or control (e.g. on the basis of majority ownership or contracts) is aggregated.

Financing for companies in the preparation of Innovation Fund projects

The aim of the EU Innovation Fund is to bring solutions to the market to reduce carbon dioxide emissions from European industry. The fund provides companies with grants for the commercialisation and scaling up of innovative low-carbon technologies. Business Finland offers funding for the preparation of projects.

1. Business Finland can accept the costs of a project in the preparation phase as a maximum of 5% of the total costs of the participant in question recorded in the application for the EU project in question (e.g. €3.5 million = €175,000).
2. Business Finland's funding share is 50 per cent of the costs, but no more than €200,000.
3. The costs of preparing an EU application can be accepted as part of the preparation costs

Disbursement of funding

1. No advance payment is made in this financial service.
2. An application for preparatory funding must be submitted as soon as the costs are to be accrued. Costs incurred before the filing date will not be accepted.
3. You can account for the costs of the preparatory project once the EU application has been evaluated. A condition for the payment of funding is that the EU application has been assessed in all respects. The GHG emission avoidance, degree of innovation, replicability, project maturity and cost efficiency sections must all be assessed. If the applicant is informed that the Innovation Fund project will not be fully evaluated, the information must be submitted to Business Finland without delay.
4. As a report for Business Finland, a brief description of the prepared project, a cost statement and an EU evaluation report are sufficient.
5. An auditor's statement is usually not required. The need will be assessed in connection with the processing of the application.

What is required of your company?

1. The company must have credible prerequisites for implementing the Innovation Fund project.
2. In order for a project to be eligible for funding from the Innovation Fund, it must be sufficiently mature in terms of planning, business model, and financial and legal model.
3. The company's board of directors must not yet have made the final investment decision.
4. The company is prepared to collect the required self-financing share
5. Preparatory funding is de minimis support. A company can receive a maximum of EUR 300,000 in de minimis aid over a three-year period. De minimis financing of companies belonging to the same group or control (e.g. on the basis of majority ownership or contracts) is aggregated.

Preparation of a Horizon, EDF or Innovation Fund application as part of a research, development and piloting project funded by Business Finland

The preparation of Horizon Europe projects, European Defence Fund (EDF) projects and EU Innovation Fund projects can also be funded as part of another project funded by Business Finland, if the goal is, for example, to expand the project or continue it into an international cooperation project.

1. The preparation of an EU project must be described in the project plan of the corresponding Business Finland project as a separate work package.
2. The project plan must also describe how the EU project you are pursuing would expand or continue the Business Finland project.
3. It is also possible to apply for a change in the project plan and cost estimate for ongoing projects funded by Business Finland, if it becomes necessary to expand the project into an EU project. However, including the preparation costs of an EU project in an ongoing Business Finland project will not increase the funding originally granted by Business Finland.
4. The acceptable preparation costs must be reasonable in relation to the targeted EU funding.
5. For example, the costs of mapping and preparing partners and cooperation opportunities are accepted as preparation costs. The preparation of an application for EU funding is not funded.