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Grant Analysis

Purpose & Target

This grant aims to foster bottom-up social entrepreneurship as a key driver for the co-creation of neighbourhoods that align with the values of the New European Bauhaus. It seeks to generate new scientific evidence, empower inhabitants and civil society actors, and create positive economic and social impacts within communities. This is a SECTOR-SPECIFIC grant targeting organizations involved in social entrepreneurship, including small businesses, collectively owned companies, cooperatives, civil society and community-building initiatives, neighbourhood associations, grassroots initiatives, and community land-trusts. The focus is on the built environment and the social economy, within urban, peri-urban, and rural neighbourhoods. The geographic scope requires projects to implement pilots in at least 3 different EU Member States or Associated Countries. Key filtering criteria include a strong emphasis on social impact, community engagement, and alignment with New European Bauhaus principles of sustainability, aesthetics, and inclusiveness. The grant is part of the Horizon Europe Work Programme 2025, specifically designed for this call.

Financial Structure

Funding Amounts and Limitations This grant provides a lump sum contribution for each successful project. For the specific topic 'HORIZON-NEB-2025-01-BUSINESS-02', the maximum and minimum grant amount per project is 4,000,000 EUR. A total budget of 12,000,000 EUR is allocated to this topic, with an expectation to fund 3 projects. Co-financing and Matching Fund Obligations

The grant operates on a lump sum basis, meaning payments are fixed amounts linked to the completion of specific work packages, rather than reimbursement of actual costs incurred. This inherently simplifies financial management and auditing.
Applicants propose the lump sum amount based on their estimated direct and indirect costs. While the EU contribution may partially cover total project costs, explicit matching fund percentages are not stated for this lump sum model. The proposal's estimated costs must be greater than the requested EU contribution to comply with co-financing principles.

Eligible and Ineligible Costs

The lump sum covers costs that would be eligible under a traditional actual costs grant. These include:
- Personnel costs (employees, natural persons under direct contract, seconded persons, SME owners, natural person beneficiaries)
- Subcontracting costs
- Purchase costs (travel and subsistence, equipment, other goods, works, and services)
- Other cost categories (financial support to third parties, internally invoiced goods and services, research infrastructure access, PCP/PPI procurement costs).
Indirect costs are calculated at a flat rate of 25% of the direct cost categories that qualify under Horizon Europe rules.
Costs that are ineligible under standard Horizon Europe rules must be excluded from the lump sum calculation.

Payment Schedule and Mechanisms

Payments are made upon the proper implementation of corresponding work packages, as defined in Annex 1 of the grant agreement. Payment does not depend on actual costs incurred.
Pre-financing follows standard Horizon Europe rules.
Lump sum contributions for work packages whose conditions are not met will not be paid.

Financial Guarantees and Security

Between 5% and 8% of the total lump sum is retained as a contribution to the Mutual Insurance Mechanism.

Financial Reporting and Audit Requirements

Beneficiaries have no obligation to report actual costs incurred or to document them for the granting authority. This significantly reduces administrative burden.
Financial checks and audits are generally minimal, focusing instead on the technical implementation of the action and the fulfillment of work package conditions.

Eligibility Requirements

Eligible Organization Types This grant is open to a wide range of organizations engaged in social entrepreneurship. This broadly includes: * STARTUP (if considered small businesses) * SME (if considered small businesses) * ENTERPRISE (e.g., collectively owned companies, cooperatives) * NGO (e.g., civil society and community-building initiatives, neighbourhood associations, grassroots initiatives) * OTHER types such as collectively owned companies, cooperatives, civil society and community-building initiatives, neighbourhood associations, grassroots initiatives, and community land-trusts. Geographic Eligibility Organizations must be established in EU Member States or countries associated with Horizon Europe. A crucial requirement is to deliver at least 3 bottom-up social entrepreneurship pilots in at least 3 different Member States or Associated Countries. Consortium Requirements A consortium is required for this grant. Proposals are expected to adopt a participatory and transdisciplinary approach, integrating diverse actors and disciplines. This includes, but is not limited to: * Public authorities * Local actors from targeted neighbourhoods (including social economy and civil society organizations) * Investors * Grassroots neighbourhood associations * Local businesses * Experts from disciplines such as architecture, design, arts, business, economics, and finance. * Effective contribution and involvement of Social Sciences and Humanities (SSH) experts is also explicitly required. Organizational Capacity and Experience While specific size is not defined for all eligible organization types, the grant targets those capable of implementing pilot projects and conducting research on social entrepreneurship. Financial and operational capacity will be assessed as per Annex C of the Horizon Europe Work Programme General Annexes. Exclusion Criteria Organizations must meet the general eligibility conditions described in Annex C of the Work Programme General Annexes, which cover financial and operational capacity and exclusion criteria. No specific exclusion criteria beyond general Horizon Europe rules are detailed.

Application Process

Application Deadlines and Submission Windows

The application submission window opened on 2025-05-06.
The definitive deadline for proposal submission is 2025-11-12 00:00:00+0000.

Application Procedure and Steps

This is a single-stage submission process.
Applications must be submitted electronically via the EU Funding & Tenders Portal Electronic Submission Service.
Applicants will need to sign in (or create) an EU Login account to access the submission system.

Required Documentation and Materials

Applicants must use the specific application form template available in the Submission System, which aligns with Standard Application Form (HE RIA, IA).
Proposals require a detailed breakdown of the proposed lump sum contribution, showing the share per work package and per beneficiary/affiliated entity.
A declaration stating that beneficiaries have followed their own accounting practices for budget preparation must be included.
All documentation must comply with the page limits and layout described in Annex A and E of the Horizon Europe Work Programme General Annexes and Part B of the Application Form.

Types of Support Offered Beyond the funding provided, applicants and potential participants can access a range of support services: * Resources: Online Manual, Horizon Europe Programme Guide, FAQs, Reference Documents. * Guidance and Assistance: Research Enquiry Service, National Contact Points (NCPs) in EU and associated countries, Enterprise Europe Network (EEN) for SMEs, IT Helpdesk for technical issues. * Specialized Advice: European IPR Helpdesk for intellectual property, CEN-CENELEC Research Helpdesk and ETSI Research Helpdesk for standardisation. * Networking: Partner Search facility to find collaborators for consortia. Project Implementation Timeline and Reporting Obligations

Project duration is not explicitly stated, but it is an Innovation Action (IA) requiring the delivery of at least 3 bottom-up social entrepreneurship pilots in different eligible countries.
Financial reporting is simplified due to the lump sum model; the focus is on demonstrating technical implementation and fulfillment of work package conditions.
A specific reporting obligation requires proposals to dedicate at least 0.2% of their total budget to share intermediate and final results with the 'New European Bauhaus hub for results and impact' Coordination and Support Action (HORIZON-MISS-2024-NEB-01-03).

Post-Award Requirements and Compliance Obligations

Post-award, focus will be on the technical implementation of the action, including ethics and research integrity, dissemination and exploitation of results, management of intellectual property, and gender equality. While financial reporting of actual costs is minimal, compliance with agreed work package deliverables is paramount for payment.

Evaluation Criteria

Applications for this grant will be evaluated based on the standard Horizon Europe criteria: Excellence, Expected Impact, and Quality and Efficiency of the Implementation. Innovation Requirements

Proposals must demonstrate development of innovative funding mechanisms and new business models for the transformation of neighbourhoods.
This includes fostering innovative supply chains based on circular economy principles and sustainable practices.
Projects should leverage innovative processes, methods, and techniques for building and infrastructure renovation, emphasizing design innovation, creativity, and cost-effectiveness.

Social Impact Expectations

A core evaluation component is the potential to increase inhabitants’ quality of life and well-being, foster social cohesion, and create new economic impulses and employment opportunities in neighbourhoods.
Proposals will be assessed on how they engage marginalized and vulnerable groups in public decision-making and co-creation processes.
Expected impacts include driving positive cultural, social, and environmental change and enhancing the long-term sustainability and competitiveness of the ecosystem.

Competitive Advantage Factors

Projects demonstrating clear economic attractiveness and affordability of their solutions for neighbourhood revitalization will be favored.
The ability to overcome perceived barriers and risks (e.g., market demand, consumer preferences) associated with New European Bauhaus-aligned renovation projects.
Evidence of strong public-private partnerships and transdisciplinary approaches integrating diverse stakeholders and academic disciplines.
Generating returns beyond financial capital, including environmental, aesthetic, social, and cultural value, will be a strong advantage.

Quality Thresholds and Excellence Benchmarks

The research component is critical, requiring thorough analysis of local social, cultural, economic, financial, regulatory, and legal barriers and drivers for social enterprises.
Robust assessment of business cases and investment potential for bottom-up social entrepreneurship will be expected.

Cross-Cutting Themes Impact on Scoring

Social Sciences and Humanities (SSH): The effective contribution and involvement of SSH disciplines and experts is mandatory and will be assessed for enhancing societal impact.
Social Inclusion: Strong emphasis on engaging and benefiting marginalized and vulnerable groups is central to the grant's objectives and evaluation.
Sustainability: Integration of circular economy principles, life cycle thinking, and sustainable practices throughout the project is key.
New European Bauhaus (NEB): Direct alignment with NEB values (sustainable, inclusive, beautiful) is fundamental to all aspects of the proposal.

Compliance & Special Requirements

Regulatory Compliance Requirements

General Annexes: Adherence to the Horizon Europe Work Programme General Annexes is mandatory, covering admissibility (Annex A), eligible countries (Annex B), financial and operational capacity/exclusion criteria (Annex C), evaluation and award procedures (Annex D, F), and legal and financial setup of grants (Annex G).
Financial Regulations: Compliance with the Financial Regulation 2024/2509 and the Decision of 7 July 2021 authorising the use of lump sum contributions under Horizon Europe.
Legal Entity Validation: Rules for Legal Entity Validation, LEAR Appointment, and Financial Capacity Assessment must be followed.

Data Protection and Privacy

Applicants and beneficiaries must adhere to data protection and privacy regulations, implied by the Funding & Tenders Portal Privacy Statement and general EU data protection laws.

Environmental and Ethical Standards

Projects must align with and contribute to environmental sustainability, particularly through circular economy principles, life cycle thinking, and reducing the environmental footprint in the built environment.
Checks and reviews will specifically include aspects of ethics and research integrity.

Intellectual Property Policies

The management of intellectual property is an area subject to checks and reviews during the project implementation.

Risk Management

Proposals should demonstrate an understanding of and strategies to overcome perceived barriers and risks (e.g., market demand, consumer preferences, price sensitivity) associated with renovation projects aligned with the New European Bauhaus.

Unique Aspects (Lump Sum Grant)

This grant operates on a lump sum funding model. This means that the grant amount is a fixed sum agreed upon at the outset, and payments are tied to the successful completion of predefined work packages and deliverables, rather than a reimbursement of actual costs incurred. This significantly reduces the administrative burden of financial reporting and ex-post audits on beneficiaries.
The focus shifts from cost accounting to the scientific/technical performance and output of the project.

Cross-Cutting Considerations

Social Sciences and Humanities (SSH): The topic explicitly requires the effective contribution and involvement of SSH disciplines and experts to enhance societal impact.
Inclusion and Diversity: A strong emphasis on social inclusion, benefiting marginalized and vulnerable groups, and fostering a shared sense of belonging in neighbourhoods.
Gender Equality: Gender equality is mentioned as an area subject to checks and reviews during the grant's implementation.
Digital Agenda/AI: Listed as cross-cutting priorities for the broader program, implying integration where relevant and beneficial.

Grant Details