HOW DOES THE BUDGET OF THE SME INSTRUMENT WORK?
The budget of the SME Instrument is a part of the Horizon 2020 budget. It represents 7% of the Company’s Challenges and Leadership in Industrial Technologies.
The European Commission publishes a biannual work program including the amounts dedicated to each topic. For the SME Instrument 500 million € have been allocated for 2014 and 2015; 10% for Phase 1, 88% for phase 2 and 2% for evaluation and coaching. The quantities are equally divided among the four cuts.
The services of the European Commission in charge of the different subjects could decide to increase their contribution annual budget in order to avoid a premature exhaustion of the budget. This depends on budget availability in other areas of Horizon 2020.
The most complicated part refers to areas with little budget. The amount allocated to projects is not reduced during the process of preparing the grant. Therefore, a single project could use more money than expected for a cut-off point, thus exhausting the budget towards the end of the year.