New opportunities for SMEs in the Innovation Fund call opening in December 2026

The Innovation Fund has announced a new funding call designed in particular for small and medium-sized enterprises (SMEs) with smaller projects. It aims to make it easier for SMEs to apply for Innovation Fund funding without needing previous experience with EU grant applications. Here is our take on this new funding opportunity, get in touch with us to learn more.

European Commission recently announced that Innovation Fund 2026 call (IF26 SME) has reserved an additional budget of €200 million to support small and medium-sized enterprises (SME) developing smaller projects. This is a great opportunity for smaller players to contribute to the mitigation of climate change alongside the large industry players, which apply for funding through Innovation Fund’s large-scale and flagship projects.

The €200 million budget covers two cut-off dates during year 2027 and is not necessarily divided equally between them. Eligible project CAPEX is €2.5–20 million. What is good to understand is that all consortium members must qualify as SMEs: companies with fewer than 250 staff and annual turnover of no more than €50 million.

All applicants must complete an online SME self-assessment and submit it to the Participant Register. Component manufacturing is eligible, but maritime projects are excluded because they are covered by a separate Innovation Fund call.

How does the small-scale Innovation Fund call differ from large-scale?

Less paperwork: Less information will be required on replicability and fewer annexes will be requested, although the precise reductions are not yet clear.
A simpler way to calculate climate benefits: A new GHG calculator embeds the calculation methodology, so no separate methodology document will be needed. Online tutorials will also be available.
Simpler reporting and monitoring: Reporting during implementation will be reduced.
Two opportunities to apply in the year: The first cut-off is planned for March 2027 and the second for September 2027.
Support for projects that may carry more risk: A higher Innovation Risk Premium for SMEs could lead to larger grants.
Degree of innovation: National-level innovation is sufficient, as in the small-scale topic of the main call, but European-level innovation can earn more points.
Cost efficiency will be assessed on a pass/fail basis.
A location bonus applies to projects in low-effective-participation countries: Austria, Bulgaria, Croatia, Cyprus, Czechia, Estonia, Hungary, Ireland, Latvia, Liechtenstein, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia.

Timeline (first application round)

December 2026: Publication of the IF26 SME call
End of March 2027: deadline for applications
Apr-Jun 2027: Evaluation of proposals
Jul-Dec 2027: Grant Agreements signed for awarded projects.

If your company is not yet ready for the first application round, there will be a second application round planned to start in April 2027.

The call text is expected to be published on 3 December, followed by an IF26 SME call information day on 10 December. Online Orientation Dialogues will begin when the call text is published, offering applicants weekly opportunities for a 25-minute conversation with CINEA.

Are you new to Innovation Fund? Talk to our experts to learn more about this new opportunity for SMEs.