Funding for companies for the preparation of Horizon and EDF projects

Who can apply?

Preparation funding is intended for companies preparing a large consortium project in which the Finnish partner(s) will play a significant role. The application must describe the consortium required for the EU project, which means that the applicant must usually have secured partners from at least three EU states or Associated Countries.

Preparation funding may be granted to a company with a personnel of at least two person-years in Finland, at least one of whom is a full-time employee. The company’s net financial assets in its balance sheet must be at least equal to the total cost of the preparatory project.

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

Preparation funding for companies undertaking large-scale Horizon and EDF projects

• The total cost of the EU project must be at least EUR 3 million.
• Business Finland accepts a maximum of 5% of the total cost to be paid by the participant for the targeted project as the cost of the preparatory project (e.g., EUR 1 million = EUR 50,000).
• Business Finland’s contribution is 75% of the costs up to a maximum of EUR 60,000.
• The costs of preparing the EU application may be accepted as preparation costs.

Funding cannot be granted

• Funding cannot be granted if the company’s de minimis quota (the applicant company and the Finnish companies belonging to the same group or under its control) is full.
• We do not grant funding to single-person businesses. The minimum team in Finland is at least 2 person-years, of which at least one must be a full-time employee.
• Preparation funding may not be granted to a company in difficulty as defined by the EU. The company’s net financial assets in its balance sheet must be at least equal to the total cost of the preparatory project.

Payment of funding

• No advance is paid in this funding service.
• You can declare the costs of the Business Finland preparatory project after the EU application has been assessed. The EU application must meet the threshold values defined in each EU program for the preparation funding to be paid.

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

• The preparation of the EU project must be described as a work package of its own in the project plan of the corresponding Business Finland project.
• The project plan must also describe how the targeted EU project would expand or continue the Business Finland project.
• You can also apply for a change in the project plan and cost estimate for ongoing projects funded by Business Finland if the project is expanded into an EU project. However, the inclusion of an EU project’s preparation costs in an ongoing Business Finland project will not increase the funding originally granted by Business Finland.
• The accepted preparation costs must be reasonable in relation to the desired EU funding.
• For example, the costs of identifying and preparing partners and cooperation opportunities are accepted as preparation costs. The preparation of an EU funding application is not funded.     

 How to apply

• You can apply for the preparation funding according to the normal process in Business Finland's application service. Companies select the “Tempo” funding, which is granted according to the terms and conditions of de minimis aid. Note! "Startup" is selected as the type of applicant organization regardless of the applicant’s actual type, so that the correct application form opens.
• In possible parallel projects involving several participants, the common identifier should be the name of the EU project.
• All participants are not required to apply for Business Finland’s funding, but the preparatory project must mention the participants of the EU application, their contact details and roles, as well as their planned cost estimates.
• The name of the Business Finland preparatory project you are applying for should be “HorizonEU/EDFEU – [name of your EU project]”. This will speed up the processing of your application.
• You can apply for funding on an ongoing basis, but you must submit your application before the deadline for the EU funding call.
• Costs can be accepted at the earliest from the date when the application has been submitted to Business Finland with the required information. Mandatory information includes, for example, a brief project plan and the deadline of the call. Preparation costs may be accepted up to a maximum of six months after the end of the EU call in question. This means that Business Finland accepts project preparation costs also for one month of the preparation phase of the grant agreement. The latter preparation costs may include, for example, costs arising from the preparation of the consortium contract and project management.
• In two-stage EU funding calls, costs may already be accepted from the preparation of the first-stage application, provided that the application was submitted to Business Finland before the deadline of the first-stage application. The application must qualify for the second stage of the assessment. Preparation costs may be accepted up to a maximum of six months after the deadline for the second phase of the call in question.
• You can declare the costs of the Business Finland preparatory project after the EU application has been assessed.
  • The Horizon Europe application must achieve at least 3 points for each assessed section.
  • EDF application must achieve at least 30 points for research projects and at least 37 points for development projects.
• The report submitted to Business Finland only has to contain a brief description of the prepared EU project, a cost statement, and the EU evaluation report. An auditor’s report is not necessary.