STAGE Financial Grant Programme Call 3

Beneficiary & submission

Financed Activities under Financial Grant Programme Financial Grant is granted for the preparation of the investment plan which facilitates the transition to the sustainable and agile performance of the company. Minimal requirements for the investment plan are defined in the Appendix E. Financed activities are: 1.Preparation of an investment project plan; 2.Additional services needed for the investment plan preparation: a)Feasibility study; b)Technology audit; c)Due diligence analysis; d)Data collection and analysis for carbon footprint assessment; e)Prototyping; f)Pilot testing; g)Pilot demonstrating; h)Adaptation of business processes; i)Support to use testing facilities; j)procurement of other specialised consultancy and coaching services related to investment plan preparation; Additional services can be financed only if they are needed for investment plan preparation. Financial Grant amount can be spent only for services of Sustainability Advisors registered in the platform. SME is providing the letter of confirmation with a Sustainability Advisor from STAGE platform about the intent to provide services for preparation of the investment project plan. If a specialised consultancy service is needed, the requested consultant needs to register as a Sustainability Advisor in the platform and get approved. The Process of Receiving Financial Grant and Funding Conditions In this chapter the process of receiving Financial Grant is set up, the process includes actions from application to reporting both stages results and receiving a lump sum. •SME application for the STAGE Financial Grant Programme. SME fills in the application form on the STAGE platform, the idea for sustainability transition is presented according to the requirements, all the required documents are submitted. The investment project plan (for sustainability transition) meets the minimal requirements. The company submits the Sustainability Transition Plan and other documents required for eligibility checking and evaluation of the application. •SME Eligibility evaluation, application evaluation according to evaluation criteria. The call is closed on the announced day of application deadline. All the applications are evaluated according to pre-defined eligibility criteria. Eligible applications are evaluated according to pre-defined evaluation criteria. Best evaluated number of applications indicated in the call are granted the financing. The final decision for the evaluation is taken in Evaluation Committee (Panel). The Lithuanian Innovation Centre team performs eligibility evaluation checks. Eligibility checks are performed under the Eligibility criteria laid out in chapter 8 of this document. In this process SMEs might be required to submit additional documents to ensure that all eligibility criteria are met. Evaluation process is laid out in the chapter 9. •Contracting Financial Grant, 2 stages of lump-sum. The list of eligible applicants is presented to the Evaluation Committee for approval. The approved list of SMEs undergoes contracting for Financial Grant. The contract includes 2 stages of Financial Grant: 1st stage – 5000 EUR lump sum for investment project plan (for sustainability transformation), 2nd stage – 0.4 % (maximum 45 000 EUR) of private investment received for investment plan (for sustainability transition) implementation in the form of lump sum. -1st stage lump sum 5000 EUR (Investment plan). Eligible company receives 5000 EUR lump sum when it provides the investment plan (for sustainability transition) described in the application form within the period of 3 months of signing Financial Grant contract. There is no advanced payment. The result is confirmed by the Lithuania Innovation Centre within 10 working days, payment made within 10 work days from evaluation. Financial Grant amount is based on actual expenses (SME acquired actual expenses listed in the section 4 in the process of attracting investment). Before contracting, SME provides financial statements of last fiscal year to verify the information indicated in the application. Contract is signed between Lithuanian Innovation Centre (project STAGE partner responsible for Financial Grant Programme) and the SME. •2nd stage lump sum – 0.4 % of received private investment (investment contract signed), maximum 45 000 EUR. Successful company receives a lump sum – 0.4 % of private investment received, maximum 45 000 EUR, for implementing investment project plan for sustainability transition. The company must provide the contract of private investment received for the evaluation within the period of 6 months from signing the Financial Grant contract and Financial Grant amount is based on actual expenses (SME acquired actual expenses listed in the section 4 in the process of attracting investment). The result is confirmed by the Lithuania Innovation Centre within 10 working days, payment made within 10 work days from evaluation. If company receives financing from private investment after 6 months period, it may submit 2nd stage report for 0,4 % of Financial Grant project private investment received based on actual expenses. This report will be evaluated and approved depending on availability of funds. For reports submitted after 6 months period is over project STAGE may deny partial or full grant of 2nd stage Financial Grant Programme if programme funds were distributed. Eligibility Criteria Type of Beneficiary The accepted applicants for the STAGE Open Call are SMEs acting in various domains, including manufacturing and services. The consortium eligibility criteria are defined as a result of priority on those companies that are closest to being investment ready for sustainable transition. Here are eligibility criteria for the company: 1.An SME will be considered as such if complying with the European Commission Recommendation 2003/361/EC and the SME qualification guide. As a summary, the criteria which define an SME are: a)Independent (not linked or owned by another enterprise), in accordance with      Recommendation 2003/361/EC. b)      Headcount in Annual Work Unit (AWU) 5 - 250. c)Annual turnover less or equal to €50 million OR annual balance sheet total less or equal to €43 million. 2.In case an SME enters the STAGE Financial Grant Programme it will remain eligible even if, at a certain point during the sub-project execution, it does not fulfil criteria (b) or (c) of the SME definition. 3.The SMEs must not have had convictions for fraudulent behaviour, other financial irregularities, and unethical or illegal business practices. 4.The participating companies must not have been declared bankrupt or have initiated bankruptcy procedures. 5.It is not under liquidation or is not an enterprise under difficulty according to the Commission Regulation No 651/2014, art. 2.18. 6.It is not excluded from the possibility of obtaining EU funding under the provisions of both national and EU law, or by a decision of either national or EU authority. 7.Please note that a signed version of the Honour Declaration will be requested during the contract preparation phase. Eligibility criteria for the project idea 1.The submitted investment plan idea has to aim for the investment of €5 million or more (initial estimation of investment to be attracted, this amount may be changed during the elaboration of the investment plan). The investment project plan meets minimal requirements provided in the platform. 2.The investment plan idea foresees technological excellence related action (examples: advanced industrial technologies being adopted, innovativeness of the solution, increase of digital readiness level, implementation of management standards, value stream management, new sustainable business models being implemented, sustainable energy and energy efficiency solutions). 3.The investment plan idea foresees positive economic impact (examples: revenue growth, profit growth, created jobs, reduced waste, reduced carbon footprint, increased energy efficiency, increased energy costs savings) 4.The SME coming to STAGE Financial Grant Programme should be already recruited through the Project STAGE SME Engagement and Recruitment Programme (figure 1) in STAGE platform and has to finish initial steps of STAGE Initial Assessment and prepare Sustainability Transition Plan. Only companies which went through these steps are eligible. SME has to submit Sustainability Transition Plan aiming towards more sustainable enterprise. Guidelines for the Sustainability Transition Plan content is in the STAGE platform www.stagepartners.eu. 5.The SME provides the letter of confirmation with Sustainability Advisor from STAGE platform about intent to provide services preparing investment plan. Any Sustainability Advisor meeting minimal criteria can register in the platform. Eligible Countries Applicants eligible to receive funding through the Open Call are Any legal entity established and based in one of the EU Member States or third countries associated to Horizon Europe as defined in Horizon Europe rules for participation (link to the document): https://ec.europa.eu/info/funding-tenders/opportunities/docs/2021-2027/common/guidance/list-3rd-country-participation_horizon-euratom_en.pdf[1]. Entities subject to EU restrictive measures under Article 29 of the Treaty on the European Union (TEU) and Article 215 of the Treaty on the Functioning of the EU (TFEU) and entities covered by Commission Guidelines No 2013/C 205/05 are NOT eligible to participate in any capacity (including as beneficiaries, affiliated entities, associated partners, third parties giving in-kind contributions, subcontractors or recipients of financial support to third parties, if any). Technological areas The STAGE project involves SMEs from all 14 European Industrial Ecosystems defined by the EC including Textiles; Electronics; Mobility-Transport-Automotive; Energy-Intensive Industries; Renewable Energy; Agri-Food; Health; Digital; Construction; Retail; Proximity & Social Economy; Tourism; Creative & Cultural Industries; and Aerospace & Defence. Companies operating in these technological areas are eligible to be funded by the STAGE Financial Grant Programme. STAGE will not finance any activity, production, use, distribution, business or trade involving: 1.Forced labour[2] or child labour[3] 2.Activities or materials deemed illegal under host country laws or regulations or international conventions and agreements, or subject to international phase-outs or bans, such as: a)    Ozone depleting substances, PCB's (Polychlorinated Biphenyls) and other specific, hazardous pharmaceuticals, pesticides/herbicides or chemicals; b)    Wildlife or products regulated under the Convention on International Trade in Endangered Species or Wild Fauna and Flora (CITES); or c)Unsustainable fishing methods (e.g. blast fishing and drift net fishing in the marine environment using nets in excess of 2.5 km in length). 3.Cross-border trade in waste and waste products, unless compliant with the Basel Convention and the underlying regulations. 4.Destruction[4] of High Conservation Value areas[5] 5.Radioactive materials[6] and unbounded asbestos fibers 6.Pornography and/or prostitution 7.Racist and/or anti-democratic media 8.If any of the following products form a substantial part of a project’s primary financed business activities[7]: a)    Alcoholic Beverages (except beer and wine); b)    Tobacco; c)Weapons and munitions; or d)    Gambling, casinos and equivalent enterprises. 9.Coal prospection, exploration, mining or processing 10. Oil exploration or production 11. Standalone fossil gas exploration and/or production[8] 12. Transport and related infrastructure primarily[9] used for coal for power generation 13. Crude Oil Pipelines 14. Oil Refineries 15. Construction of new or refurbishment of any existing coal-fired power plant (including dual) 16. Construction of new or refurbishment of any existing HFO-only or diesel-only power plant[10] producing energy for the public grid and leading to an increase of absolute CO2 emissions[11] 17. Any business with planned expansion of captive coal used for power and/or heat generation[12] EVALUATION CRITERIA AND PROCESS Eligible companies will be evaluated according to application evaluation criteria and the weight of the criteria: 1.Private investment amount foreseen in the project idea of investment plan, EUR - criteria weight is 40 % of total score; 2.Potential carbon reduction (CO2 eq), tonnes - criteria weight is 30 % of total score; 3.Headcount in Annual Work Unit (AWU) in the company - criteria weight is 10 % of total score; 4.The company turnover in last financial statement before the application is submitted - criteria weight is 10 % of total score; 5.The amount of balance sheet total - criteria weight is 10 % of total score; Each criterion is multiplied by the weight percentage and added together. According this calculated value of all criteria the company list is ranked. Highest scoring companies are financed. Every call is planned to finance 20 companies, the number may vary according to the implementation of Financial Grant Programme. When the eligibility check and evaluation is finalized the list of companies and projects is made for the financing of Grants. Eligibility checking process and application evaluation is planned for 5 weeks. The final list of companies receiving Financial Grants is confirmed by Evaluation Panel within 14 days after the evaluation. [1] UK entities applying as beneficiaries in this call are not eligible. UK companies for Horizon Europe calls for proposals which implement budgetary commitments for 2021, 2022 and 2023 will not be able to receive EU funding, even if the signature of the grant agreement takes place in 2024 or later. [2] Forced labor means all work or service, not voluntarily performed, that is extracted from an individual under threat of force or penalty as defined by ILO conventions. [3] Persons may only be employed if they are at least 14 years old, as defined in the ILO Fundamental Human Rights [4] Destruction means the (1) elimination or severe diminution of the integrity of an area caused by a major, long-term change in land or water use or (2) modification of a habitat in such a way that the area’s ability to maintain its role is lost. [5] High Conservation Value (HCV) areas are defined as natural habitats where these values are considered to be of outstanding significance or critical importance (See http://www.hcvnetwork.org). [6] This does not apply to the purchase of medical equipment, quality control (measurement) equipment or any other equipment where the radioactive source is understood to be trivial and/or adequately shielded. [7] For companies, “substantial” means more than 10 % of their consolidated balance sheets or earnings. For financial institutions and investment funds, “substantial” means more than 10% of their underlying portfolio volumes. [8] Gas extraction from limnically active lakes is excepted from this exclusion [9] “Primarily” means more than 50% of the infrastructure’s handled tonnage [10] For indirect equity through investment funds, investments (up to a maximum of 20% of the fund) in new or existing HFO-only or diesel-only power plants are allowed in countries that face challenges in terms of access to energy and under the condition that there is no economically and technically viable gas or renewable energy alternative. [11] I.e. where energy efficiency measures do not compensate any capacity or load factor increase [12] This does not apply to coal used to initiate chemical reactions (e.g. metallurgical coal mixed with iron ore to produce iron and steel) or as an ingredient mixed with other materials, given the lack of feasible and commercially viable alternatives

Further information

link to the Call 3 documentation STAGE Financial Grant Programme | STAGE (stagepartners.eu)