EIC Lump Sum Projects: Smooth or Lumpy?

4 Key Things to Keep in Mind with the Lump Sum Scheme

Have you recently received the great news of being one of the SMEs awarded with an EIC Accelerator grant? Congratulations for making it in such a competitive programme with one of the lowest success rates in the EU-funded projects world!

Your brand-new EU project is certainly funded under the lump sum scheme. If you have already heard about this scheme, you probably believe that it will make the management of your EU project smoother and more user-friendly for SMEs like yours: in a word… simplification for everybody!

And you are correct, as the introduction of the lump sum scheme in EIC aims at reducing the administrative burden for beneficiaries and allowing them to focus on their innovation… however, it is not always as simple as it seems, and we suggest you always keep in mind the following 4 issues while implementing your EIC LS project:

1. It is the first time for everybody!
Lump sum in EIC was introduced for the first time in 2024, and the first EIC Accelerator projects in this scheme have just recently started. Thus, not only beneficiaries but also the European Commission and its officers need to adapt to the new rules. This lack of practical experience may lead to some confusion in analysing and following the indications, and it can also generate minor delays, especially in the Grant Agreement preparation phase: don’t panic and be patient, it is the first time for everybody!

2. EIC Accelerator is a “special” lump sum case
In other types of lump sum projects, such as collaborative projects like RIA and IA, the legal and financial structure applicable to the project implementation needed only minor adjustments. The EIC Accelerator, however, was already a “special” case before switching to the lump sum scheme: a mono-beneficiary scheme designed for SMEs with very close-to-market innovations and including an equity component. In other words, the EIC Accelerator has all the exceptions possible. For instance, the project cash-flow is prepared differently than in other types of projects, in EIC Accelerator the second payment is still  additional pre-financing, not an interim payment. Be careful, as very different rules apply for the release of additional pre-financing other than interim payments!

3. Progress meetings are even more important
Progress meetings had a very important role in EIC Accelerator projects under the old actual costs scheme. They allowed the EC to assess the status of your project development, analyse any deviations and be informed about budget consumption. All indicates that in the lump sum scheme, progress meetings will have an even more important role given that the focus is more on the implementation and technical development of your project, so progress meetings (either online or in person) are necessary to assess the work done.

But does this mean no financial information at all will be requested during LS progress meetings?

4. No financial audit doesn’t mean no control
Not at all. Remember that transversal obligations, for example the ones related to conflicts of interest and sound financial management are also applicable to lump sum projects. The fact that you don’t need to present a specific breakdown of actual costs spent under the project does not mean that the EC won’t make sure that public money is invested properly and always in compliance with other obligations under the Grant Agreement. Moreover, in the implementation of your project, you must always respect national constraints on public-funded projects.

Therefore, here is our final advice: enjoy the smoothness and simplification of the lump sum funding scheme but always keep an eye on proper implementation and transversal obligations!

If you need help in understanding more about these obligations,  do not hesitate to get in touch! hello@getpolite.eu