Being awarded the EIC Accelerator offers significant value to an SME — not only trough funding but also by granting access to an elite club of leading innovators. But what does receiving this grant actually mean? How can you ensure the awarded funds are actually fully granted? The EU has strict requirements in place to monitor this subsidy scheme till the end– and a failure to comply can jeopardize the full payment of the approved grant.
An EIC Accelerator typically lasts for 2 years and has various steps throughout to ensure monitoring of the project, resulting in the subsidy funding being received:
1. Grant Agreement preparation and prefinancing
This is the first step after the grant has been awarded. The grant agreement is a legally binding document that outlines the project activities, timelines, budget and the EU’s rules regarding project reporting, financial declaration, payment terms, obligations etc.
The document is generated after filling up the required details on the portal, followed by a review, and finally the signatures from the beneficiary and the funding agency. After this process, the EU releases the prefinancing payment within 30 days.
However, this process can sometimes take a few months, depending on any changes that may be introduced at this stage. Such changes should be avoided as much as possible at this stage, to avoid delays in the money release and project start. Check out our blog post on the grant agreement for a more detailed overview of the process.
2. Continuous Monitoring
Regularly monitoring project progress is essential. Not only for internal purposes, but also for reporting to the EU. The portal always shows the ‘continuous reporting’ section, whereby you have several subsections that need to be updated regularly.
One of these is the section on the deliverable reports. You need to ensure early on that you have a report template established (complying to EU guidelines), and then fill this up for the respective deliverables and ensure a timely submission.
Other sections include ‘milestones’, ‘dissemination and communication’ (including publications), ‘project summary’, ‘critical risks’ etc. Ensuring these sections are regularly updated also eventually helps with the periodic reporting (see point 5 below).
3. Amendments
Once the project starts, you may discover that your original workplan, timeline, or the budget breakdown is no longer realistic. When the changes are significant, an amendment of the grant agreement needs to be initiated officially via the portal. Starting this process early on and informing the project officer on time becomes crucial to ensure the activities do not get stalled. Take into consideration that depending on the complexity, this process can take up to a few months.
Note that you cannot make major changes to the project or the budget.
The overall budget is always set in stone; upon justification the budget can be transferred from one category to another. Always ensure that the overarching project aims and goals remain the same. Specifically, for an EIC Accelerator funded project you need to ensure that any changes to the workplan do not affect the project’s Technology Readiness Level (TRL), as the EIC grant component is strictly awarded for TRL 6-8.
4. Periodic reports and payments
Periodic reports take place at the end of each year of the EIC. Two periodic reports are usually required for a project lasting 24 months. Approval of these reports is essential, as it directly impacts the next payment term.
These reports present an overview of the technical progress, including reaching specific milestones. It’s important to regularly update the project portal, as it will ensure a smooth running of the periodic reporting process. With the EIC Accelerator now following the lump sum funding model, the financial reporting has been simplified, since the payments now depend on the work actually performed. To this end, you need to specify the status of work packages on the portal during periodic reporting — fully complete, partially complete, or incomplete. This should also be reflected accurately in the detailed technical report.
Note that while the lump sum funding no longer requires submission of invoices to the EU, we still strongly recommend keeping a good track of the finances for internal purposes, and for a potential audit.
5. Project progress meetings
Apart from the periodic reporting, EIC also requires two mandatory project progress meetings — one in the middle of the project duration and one towards the end (these can then be linked to the periodic report and thereby payment release). In some cases, additional meetings may be scheduled in the duration of the project (for example every 6 months), especially if the project has been extended.
These meetings involve the project officer and an external reviewer, and sometimes a representative from the EIB. The beneficiary is informed a month prior to prepare for the meeting. The goal of these meetings is to update the EU on the progress of the project, and to bring up any potential issues (technical and/or financial) which may entail an amendment.
Having a well-prepared presentation for this meeting is a must to show the activities are being carried out properly following the contractual agreement with the EU. This meeting is also a great opportunity to get direct feedback from the EU on the work and next steps in the project.
How can FFUND help?
At FFUND we take care of all the above-mentioned requirements and provide strategic advice to ensure a smooth running of the grant. Contact us on info@ffund.nl or use the contact form to get further information.
About the EIC Accelerator
The EIC Accelerator provides non-dilutive grant funding of up to €2.5 million for innovation development costs and investments of up to €10 million for commercialization and scaling of technologies of strategic European interest. In addition, EIC-selected companies receive coaching, mentoring, access to investors and corporates, and many other opportunities as part of the EIC community.
