EU grants:
essential guide to applying for public funding
If this is your first time navigating the complex world of EU grants, first of all welcome. You are probably wondering “what are grants?”, “how do I get started?”, “how can I find the right funding opportunities?”, “is my business even eligible?” and, more importantly, “why are grants one of the best strategies for business growth?”.
As you probably already noticed, the funding journey is not a straightforward path. The truth is, many businesses miss out on grants simply because the system feels too bureaucratic or overwhelming.
That’s exactly why we’re here to break the cycle. So, let’s start by answering these questions and exploring the fundamentals of EU grants.
Types of funding
Starting with the basics. Not every funding opportunity is a grant. The EU provides different routes, each with specific rules and goals. Spotting the right one for your business is the first step to improving your chances of success.
Grants, for example, are direct financial contributions, usually project based and cost reimbursed, requiring measurable results and reporting. Financial instruments, such as loans or guarantees, complement grants and can be combined to fill financing gaps.
There are also trust funds, where several donors finance a common objective under shared rules; prizes, the financial rewards granted after a contest or challenge; and subsidies, which can include direct payments or support for operating costs, often channelled through funds such as the Cohesion Fund.
Management Models
To better understand how funding works in Europe, it is important to know how it’s managed, as this impacts the application process and the execution of your project. All the programmes funded by the EU budget use one of three management types: direct, shared and indirect management.
In direct management, the European Commission runs the entire funding cycle. This includes issuing calls, evaluating applications, distributing funds, and assessing the results. One example of this is the Competitiveness of Enterprises and Small and Medium-sized Enterprises (COSME), whose main goal is to support the creation and expansion of SMEs.
Shared management involves a partnership between the European Commission and national or regional authorities. In this case, both sides share responsibility for managing the funds. The country’s administration selects which projects will be financed and follows the day-to-day , while the Commission deliverablesmakes sure the money is used correctly and the project is executed. Around 70% of EU programmes are run this way.
In indirect management, the European Commission delegates the administration of funds to national authorities or international organisations, such as the World Bank and the European Investment Fund. These institutions are responsible for implementing EU programmes, assessing applications, and distributing funds locally.
How do EU grants work?
Let’s move forward and deep dive into this specific type of funding.
Grants are non-repayable amounts of money awarded by public institutions, foundations, or organisations to support a specific project or activity. That means you do not give away equity or pay back the money when the project finishes.
Instead, you accept clear requirements, measurable deliverables and regular reporting complying with each opportunity criteria. In other words, they are a form of non-dilutive support that lets your business explore R&D, validate pilots, hire talent, buy equipment or scale a product that matches public policy goals.
In the EU, grants are offered at European Union level, via national and regional programmes, and occasionally by private foundations. It can be funded by the EU general budget or the European Development Fund (EDF), and divided into two categories: action grant, which funds a specific project aimed at achieving one of EU policy objectives; and the operating grant, which covers the operating costs of an organisation pursuing an objective that supports the policies.
Some of the most well known programmes include Horizon Europe, the flagship programme for research and innovation; Erasmus+, which funds education, training, youth and sport projects; and NextGenerationEU, the post pandemic recovery plan delivering national investments and reforms for the green and digital transition.
Consortia vs Individual Grants
Within the grant ecosystem, there are also different ways of applying for an opportunity. You can either do it individually or via consortium. Let’s understand each one.
A consortium is a collaboration between multiple organisations (e.g., businesses, research centres, and universities) working together on a joint application for EU funding. This is particularly common in R&I projects that require diverse expertise or resources. In these cases, working as part of a consortium, with cross-border and cross-sector collaboration, can increase your chances of success and also provide access to larger budgets.
On the other hand, if your project is smaller or more focused, applying for a grant individually may be more appropriate. Individual grants are typically simpler to manage and can be faster to execute. This is often the case for HR and digital transformation grants, which tend to target startups and small businesses.
The decision depends on your project’s scale, complexity, and the resources you have available.
Understanding co-financing in EU grants
We usually say that grants are like “free money”, but that doesn’t mean your business will secure the complete amount necessary to execute your project.
When applying for EU grants, you may come across the term co-financing, which refers to the process of sharing the financial responsibility of a project between the European Union and the applicant. In simple terms, co-financing means that the EU will fund a part of the project’s costs, but you, as the applicant, are required to contribute the remaining amount.
It is commonly used for larger, more complex projects, particularly those involving infrastructure, research, or innovation. It ensures that, both the European Union and the ones applying, share the risks and rewards, and prevents businesses from relying solely on EU funds, proving they have the necessary financial stability and resources to see the project through.
Typically, the EU will provide a portion of the funding. This percentage varies depending on the grant programme, but most EU grants with co-financing require the applicant to provide between 20% to 50% of the total project costs.
The EU grant application lifecycle
Now that you are more familiar with grants and the European system, let’s break down what are the main steps your business needs to face when navigating this funding opportunity.
The first step is finding the right grant programme for your project. It requires understanding the criteria of each call and whether your business aligns with them. This part alone can take weeks if you’re tackling it in the traditional way.
Once you decide which opportunity to apply for, it’s time to prepare your application. That means gathering all the necessary information to structure your proposal. You’ll need to submit a detailed application that outlines your project’s objectives, expected results, and how the funding will be used. Most grants also require a project timeline, a budget breakdown, and partner details if you’re applying via consortium.
Next is submission. With your proposal ready to go, you’ll fill out the forms in the official government portals to complete your application. It will then undergo an evaluation process to assess the project’s feasibility, innovation, impact, and alignment with EU goals.
If successful, you’ll receive the grant, and a formal agreement will be signed. This agreement will outline your responsibilities, reporting requirements, and deliverables.
It’s also important to note that the opportunity can be lump-sum, meaning the complete amount of funding is provided at the beginning of the project to cover all associated costs, regardless of how many stages or milestones it has. In other cases, instead of receiving the full amount upfront, the funds are distributed in instalments, typically upon the completion of predetermined milestones or deliverables.
The post-approval phase will depend on that and on the specific requirements of the programme. Your business might be required to submit regular progress reports and financial statements to ensure compliance with the grant conditions, as well as a final report detailing the results achieved, how funds were used, and any other necessary documentation.
Seems like a lot, and definitely it is, especially if you’re taking the traditional route of doing it manually and on your own. Estimates show that a regular grant application can take more than 50 hours to complete, spread across months of research, preparation, writing, and submission. With that, many businesses give up before they even begin and end up losing real growth opportunities.
Where to find the right grant opportunities
As mentioned before, the first step to secure an EU grant is to find the right opportunity. But how can you do that? You might think that looking at the European Commission website is th easiest way, but that’s not always the case.
We know that the public funding system is fragmented and resources are often outdated. The information tends to be scattered all over government portals, making it difficult to know where to start. And it’s not only a matter of finding an opportunity, but making sure that the grant you choose matches with your business profile.
Relying on traditional consultants can be expansive and still very time-consuming. Using generic AI tools, like ChatGPT, to try to optimize your search and reduce time spent reading through every single call, can only get you so far. Even specific grant aggregators won’t give the necessary assistance to help you find the opportunity that fits your goals.
Most of these options only cover one fraction of this complex journey, missing out on two very important steps that come after the discovery part: the eligibility check and the writing process. It all comes down to making sure that the opportunity is the right one for your business and that your proposal is strong enough to improve your chances of success.
Decoding eligibility and grant writing
One of the first questions most businesses ask themselves when applying for grants for the first time is “How do I even know if this is the right opportunity for me?”. And to answer that question, we need to understand the role of eligibility as the very first filter of any application.
"Eligibility" refers to the state of being qualified to something, meeting specific requirements or criteria. In the context of grants, it means meeting all the necessary conditions set out by that specific call, such as the type of business, project goals, or location.
For EU grants, it varies depending on the programme. For example, many EU grants are available to SMEs (Small and Medium Enterprises) and startups. Others are focused on particular research themes, such as biotechnology and renewable energy.
Some grants are only available to businesses located in specific EU member states or regions, others can require cross-border partnerships. And there’s also the financial component, where depending on the size of the grant, some programmes may require applicants to demonstrate financial stability or the ability to co-finance the project.
Beyond that, there’s also one of the most important factors: the admissibility and relevance of the project. For your business to even be considered, your project must align with the goals of the funding programme. For example, if applying for a R&I grant, it must demonstrate a significant level of innovation and technology.
Then grant writing enters the game. That step is the one that usually takes the most time and effort to successfully conclude. The proposal should clearly translate what are your company goals, the purpose of your project and every relevant information that could justify and support your idea, showing why this is not only relevant for your business, but to the specific objectives of the programme you’re applying for.
Seems easy, right? But there’s a lot that goes into it to make your application really stand out.
Application tips to avoid common mistakes
Writing a strong grant proposal can be a rocky road, especially for first-timers. Here are some tips to help you avoid common mistakes and navigate easily through this important step:
Be clear and concise
The grant process is already too complex. Your proposal doesn't need to follow the same path. Avoid unnecessary jargon and filer words into your content. Evaluators are not looking for the most elaborated and far-fetched applications, they are looking for projects that spark attention and show relevance. Be cohesive and make your case in a way that is easily understandable.
Follow instructions
It may sound like something pretty straightforward, but many businesses miss the mark on basic things. Each programme has specific instructions for submission. Pay close attention to deadlines, formatting requirements, and requested documentation.
Provide detailed budgets and timelines
Of course, the financial aspect of your project is just as important as your motivation. As we mentioned before, there are different types of grants and management models, and they all have their necessary steps and requirements regarding your financial report and reimbursement. So, make sure your budget and project timelines are realistic and detailed. This demonstrates that you’ve carefully planned the project and can manage the resources effectively.
Highlight your impact
We said it before, and we’ll say it again: your project needs to be relevant. Grant reviewers want to see the positive impacts your proposal will have not only for your own business, but for the overall community. Be sure to highlight the potential benefits and how it will align and contribute to the EU’s goals.
Triple check your application
Before applying, make sure your proposal fits all the grant criteria, and that you have the necessary documentation and resources to support your project.
How to streamline your grant process
Now that you’re aware of every step and the complexity of the grant journey, you might feel overwhelmed with so much to do. As pointed out earlier, the traditional process might take months and require some level of knowledge and investment most businesses don’t have. But that doesn’t mean that grants aren’t an option for you.
Granter is here to change the game and make grants accessible to all kinds of businesses. We created the world’s first AI Grant Consultant to optimize the funding system and make grants a real growth engine for companies and institutions.
Our end-to-end solution, guides you through every step of the application process; from discovery to submission. The AI agent learns with your company information and scans every official portal to find you the best opportunities. It continually runs your company’s eligibility and project’s admissibility to make sure you’re applying for the right grant opportunity.
Once you’re ready to start your application, it will help you write the complete proposal, giving structured feedback based on official grant criteria. All that to make the writing process faster, smarter and intuitive.
It will also help you submit in government portals and act as your own employee, managing every application submitted. From start to finish, your business is able to completely handle your funding journey in one single platform.
