Non-thematic development actions by SMEs

European Defence Fund call EDF-2026-LS supports non-thematic development actions led by SMEs to develop defence products and technologies starting at TRL 4 and above. The topic has an indicative budget of €30,000,000 with a maximum EU contribution of €6,000,000 per project and uses lump-sum grants tied to work-package completion. Consortia must comprise at least three independent SME beneficiaries from three eligible countries and comply with SME self-assessment, security, co-financing and subcontracting provisions. Submissions are single-stage via the EU Funding & Tenders Portal between 11 February 2026 and 29 September 2026, 17:00 CET, with evaluation and grant preparation following the EDF 2026 work programme.

Non-thematic development actions by SMEs (EDF-2026-LS-DA-SME-NT)

What the call funds

Scope in one line

Development actions for innovative defence products, solutions and technologies (TRL 4+), including add-on adaptations of civil technologies for defence. Proposals must address at least one of: design, system prototyping, testing, qualification, certification or increasing efficiency.

Form of funding:Lump sum grants (EDF-LS). Actions implemented in indirect management by the European Defence Agency (EDA); funding awarded via Contribution Agreement.

Who can apply

Consortia of SMEs only: minimum three independent SME beneficiaries from three different eligible countries. Coordinator must be an SME. Beneficiaries, affiliated entities and subcontractors must be established in EDF-eligible countries and meet ownership/control requirements.

1. 1Applicants: SMEs (no research organisations unless they qualify as SMEs).
2. 2Consortium: minimum 3 independent SME beneficiaries from 3 different eligible countries.
3. 3Subcontracting limited and subject to EDF rules (30% cap per beneficiary for subcontracting where applicable).
4. 4Associated partners, affiliated entities and recipients of financial support to third parties (FSTP) have specific conditions.

Money and deadlines

Indicative topic budget €30,000,000 for this topic. EU contribution per proposal cannot exceed €6,000,000. The call opens 11 February 2026 and the submission deadline is 29 September 2026 (17:00 Brussels time).

Key conditions and evaluation highlights

Proposals must be multi-beneficiary (SME-focused), fit EDF defence priorities, and comply with security, ownership/control and SME self-assessment requirements. Lump sums are fixed on the basis of the detailed budget table submitted and will be paid on achievement of deliverables/work packages. FSTP (cascade funding) is allowed within ceilings and rules.

1. 1Eligible activities: integrating knowledge, studies, design, prototyping, testing, qualification, certification, or efficiency improvements (must cover at least one of design/prototyping/testing/qualification/certification/increasing efficiency).
2. 2TRL: proposals must address technologies at TRL 4 or above.
3. 3Security: projects handling classified information require facility/personnel clearances and will follow the EDF security instruction (PSI).
4. 4SME self-assessment: SMEs must register and complete the SME self-assessment in the Participant Register before submission.
5. 5Funding rates and bonuses: funding rates depend on activity type and possible SME/mid-cap/PESCO bonuses; detailed rules in the call document.

How to apply / where to get documents

Submit electronically via the EU Funding & Tenders Portal. Required materials include Application Form Part A and Part B (password-protected zip), detailed budget table, participant information and mandatory annexes (ownership control, co‑financing declarations, harmonised capability declarations and others as specified). Read the call document and templates on the Portal carefully.

Support

For call-specific help contact DEFIS-EDF-PROPOSALS@ec.europa.eu. Use the Funding & Tenders Portal helpdesk for IT issues and the Online Manual for submission guidance. Partner search features are available in the Portal.

Footnotes

1. 1Official topic page and call documents (call fiche, call document, application templates and annexes) are available on the EU Funding & Tenders Portal Topic page.

European Defence Fund: Non-thematic development actions by SMEs (EDF-2026-LS-DA-SME-NT)

Call type: Call for proposals under the European Defence Fund (EDF) 2026 Work Programme. Topic: Non-thematic development actions by SMEs. Type of action: EDF Lump Sum Grants for Development Actions (EDF-LS). Management mode: Indirect management by the European Defence Agency (EDA) via a Contribution Agreement, following award decisions by the European Commission. Opening date: 11 February 2026. Deadline: 29 September 2026 at 17:00 Brussels time. Single-stage submission through the EU Funding and Tenders Portal Topic page.

Opportunity scope and objectives

Scope: Proposals must develop innovative defence products, solutions or technologies that improve readiness, deployability, reliability, safety and sustainability of forces. Examples include operations, equipment, infrastructure, energy solutions, surveillance systems and digital solutions. Proposals must address disruptive knowledge, products or technologies in any defence area from TRL 4 and above. The topic also welcomes add-on development actions that adapt solutions originally developed for civil applications but not yet applied in the defence sector (spin-in).

Targeted types of activities eligible for Development Actions under Article 10(3) of the EDF Regulation are: integrating knowledge, studies, design, system prototyping, testing, qualification, certification, and development of technologies or assets increasing efficiency across the lifecycle. Generating knowledge activities are not eligible under this topic. Each proposal must include at least one of the following activities: design, system prototyping, testing, qualification, certification, or increasing efficiency.

Funding, budget and rates

Total indicative topic budget: €30,000,000. Additional €1,050,000 is allocated for remuneration of the entrusted entity. Maximum EU contribution per project: up to €6,000,000. Number of grants is not fixed; awards depend on evaluation results and available budget.

Form of funding: Lump sum grants. Lump sums are fixed ex ante based on a detailed estimated budget and applicable funding rates. Beneficiaries do not report actual costs; they receive the agreed lump sum upon proper completion of work packages and achievement of results.

Baseline funding rates per activity type for Development Actions vary and can be increased by bonuses. Indicative baseline rates: integrating knowledge 65 percent, studies 90 percent, design 65 percent, system prototyping 20 percent, testing 45 percent, qualification 70 percent, certification 70 percent, increasing efficiency 65 percent. Bonuses may raise rates up to the following maxima: up to 100 percent for studies, integrating knowledge, design and increasing efficiency; up to 80 percent for testing, qualification and certification; up to 55 percent for prototyping. Bonuses include PESCO bonus (+10 percentage points), SME bonus linked to SME cost share with enhanced multiplier for cross-border SMEs, and mid-cap bonus (+10 percentage points) when applicable. PESCO bonus requires confirmation from the national PESCO project coordinator at grant preparation.

Equipment cost rule: Depreciation is the normal rule. Full purchase cost may be eligible for listed equipment specifically for system prototyping activities.

Indirect costs: 25 percent flat rate of eligible direct costs by default, or actual indirect costs using an accepted usual cost accounting practice if supported by the Actual Indirect Cost Methodology Declaration and national authority confirmation.

Subcontracting: Strictly limited to 30 percent of total eligible costs per beneficiary and per affiliated entity in this SME topic. Subcontractors or associated partners may be non-SMEs. Subcontracted work must be performed in eligible countries. Subcontractors cannot lead core work packages.

Financial Support to Third Parties (FSTP): Allowed, up to a maximum of 5 percent of the requested EU contribution, and up to €60,000 per third party. FSTP sub-calls must be open and transparent and may target SMEs and innovators across Member States, EDF associated countries and Ukraine. FSTP-related organisational costs are budgeted under standard categories and reimbursed at applicable rates; FSTP grants to third parties are reimbursed at 100 percent.

Mandatory evidence and Member State support

• For design activities: harmonised defence capability requirements jointly agreed by at least two Member States or EDF associated countries (or at minimum a joint intent if studies are still needed).
• For prototyping, testing, qualification or certification activities: at least two Member States or EDF associated countries must intend to procure the final product or use the technology in a coordinated manner, including through joint procurement where applicable, and agree on common technical specifications (or at minimum a joint intent if design is still needed). Declarations must be submitted with the proposal using the dedicated templates.

Geographic and eligibility conditions

Eligible participants: Legal entities established in EU Member States, including their overseas countries and territories, and in EDF associated countries. For this call, Norway is associated to EDF. All applicants must have their executive management structure in an eligible country and must not be controlled by a non-associated third country or entity unless national guarantees under Article 9(4) EDF Regulation are provided and approved by the competent national authority. Natural persons are ineligible (except sole traders without separate legal personality under national law). International organisations are ineligible unless composed exclusively of Member States or EDF associated countries with executive management in those countries.

SME restriction: All beneficiaries and affiliated entities must be SMEs as defined in EU Recommendation 2003/361. The coordinator must be an SME. Research organisations may participate only if they qualify as SMEs and pass the SME self-assessment. SME status must be confirmed in the Participant Register via the SME self-assessment no older than the last closed accounting period and not older than 31 December 2024 at proposal deadline.

Consortium composition: Minimum of three independent SMEs from three different eligible countries. Associated partners and subcontractors involved in the action must also be established in eligible countries and comply with ownership and control restrictions. Associated partners not established in eligible countries may participate only exceptionally without EU funding and subject to strict conditions and granting authority approval.

Geographic place of performance: Activities and use of infrastructure, facilities, assets and resources must be in eligible countries. Exceptionally, non-eligible locations may be authorised without funding and only if there are no readily available competitive substitutes and if no conflict with EU and Member State security and defence interests arises.

Special participation notes: UK is not eligible for EDF participation under the current programme. Ukraine-based entities cannot be beneficiaries, affiliated entities or subcontractors in EDF projects; however, entities established in Ukraine are eligible as recipients of FSTP under this topic’s FSTP conditions. Entities established outside the EU and Norway may be associated partners exceptionally without EU funding and with safeguards.

Technical maturity and expected impacts

Project maturity: TRL 4 and above at start. The action is a Development Action, covering activities from design through system prototyping, testing, qualification and certification, and lifecycle efficiency improvements.

• Expected outcomes include innovative and cost-effective defence solutions; novel or ground-breaking concepts and tools; spin-in of civil technologies to defence; stronger participation of SMEs and growth acceleration; enhanced EDTIB autonomy, security of supply and reduced strategic dependencies; and new or strengthened EU-wide research and industrial ecosystems and supply chains.

Security, ethics and IPR

Security: Proposals and grants may undergo security scrutiny. If classified information is involved, the project will operate under a Security Aspects Letter and a Programme Security Instruction annex, potentially including a specific Member State security framework under Article 27(4) EDF Regulation. Projects involving EUCI above RESTREINT require Facility Security Clearance for relevant premises and Personal Security Clearances for involved staff, as applicable. Tasks involving classified information may be subcontracted only to entities established in the EU or in countries with appropriate security of information agreements and with prior written approval. No funding for information classified TRES SECRET UE/EU TOP SECRET or equivalent.

Ethics: All projects must comply with EU, national and international ethics laws and highest standards of research integrity. An ethics self-assessment is required; ethics review and specific ethics deliverables may be imposed in the Grant Agreement.

IPR: Results are owned by the consortium as agreed internally. Background and results must remain free from control or restriction by non-associated third countries or entities. EDF rules allow the consortium to define detailed ownership, protection, transfer, licensing and access rights, within EDF Regulation and Grant Agreement constraints. A robust IP strategy supporting competitiveness and growth is an award criterion.

Evaluation, award criteria and bonuses

Single-stage evaluation. Proposals are first checked for admissibility and eligibility, then evaluated and ranked per topic. An overall threshold of 37 out of 55 points applies. The criteria and maximum scores are: Excellence and potential of disruption (max 5, weighting 2), Innovation and technological development (max 5, weighting 1), Competitiveness (max 5, weighting 1), EDTIB autonomy (max 5, weighting 2), Creation of new cross-border cooperation (max 5, weighting 2), Lifecycle efficiency (max 5, weighting 1), Member State cooperation (max 5, weighting 1), Implementation (max 5, weighting 1). Ties are broken by criterion scores in the following order: Excellence and potential of disruption, Innovation and technological development, Competitiveness, Creation of new cross-border cooperation, and then number of countries of applicants.

STEP alignment: Successful proposals may receive a STEP Seal if they pass the thresholds but are not funded, subject to compliance checks, enabling access to other funding instruments under the Strategic Technologies for Europe Platform where applicable.

Financial and operational capacity; payments

Financial capacity is checked at grant preparation for beneficiaries, except public bodies and grants with individual requested amounts below €60,000. Operational capacity is assessed via the Implementation criterion, covering staff profiles, experience and resources. Pre-financing is normally 55 percent of the maximum grant amount, with possible additional pre-financing or interim payments. Prefinancing guarantees may be requested. Payments are to the coordinator, with distribution to partners. No-profit rule does not apply to lump sum grants.

Key legal and cost rules specific to this call

• Work Package 1 Project management and coordination must use the funding rate of activity type Studies.
• Lump sum calculation must follow the detailed budget table template; estimated budgets must respect eligibility rules of actual cost grants, including best value for money for purchases and subcontracting and conflict of interest avoidance.
• Eligible country restriction applies to costs and activities. Assets, infrastructure, facilities or resources outside eligible countries are not eligible for reimbursement even if exceptionally authorised for use.
• Project websites as separate sites are not eligible; communication via participants’ websites or social media is eligible. Kick-off meeting travel is eligible only if after the project start date.
• In-kind contributions for free are cost-neutral and cannot be declared as cost.
• Ownership control assessment and, where required, Ownership Control Guarantees and approvals by competent national authorities are mandatory for entities controlled by non-associated third countries (beneficiaries, affiliated entities, associated partners and subcontractors involved in the action).
• Subcontractors involved in the action include those with a direct contract to a beneficiary or affiliated entity, those with at least 10 percent of total eligible costs allocated, and those requiring access to classified information.

Application process and timeline

Submission is through the EU Funding and Tenders Portal using the Electronic Submission Service. Part A is completed online, and Part B with annexes must be uploaded as a single AES-256 password-protected ZIP archive. The password and proposal ID must be emailed before the deadline to the dedicated address provided in the call document. Classified materials must not be submitted via the Portal; separate arrangements with the granting authority are required.

• Proposal page limit: Part B is limited to 100 pages including work package descriptions. Templates and formatting rules apply.
• Indicative evaluation period: September 2026 to March 2027. Information on results: March 2027. Grant agreement signature by 31 December 2027, subject to any change of management mode or entrusted entity timelines.
• Single-stage submission and evaluation. Consortium Agreement is obligatory and should be in place by grant signature.

Templates, forms and annexes to prepare

Standard application package and model grant documents are accessible from the topic page under Call documents and annexes. The following templates and structures apply:

• Application Form Part A Online screens capturing consortium administrative data, budget summary, declarations.
• Application Form Part B Technical narrative, uploaded as PDF inside a password-protected ZIP. Structure includes Project Summary, sections on Excellence and potential of disruption; Innovation and technological development; Competitiveness; EDTIB autonomy; Creation of new cross-border cooperation; Lifecycle efficiency; Member State cooperation; Implementation with Work Plan, Work Packages with tasks, milestones and deliverables; Consortium setup and management; Project management, quality assurance and monitoring; Cost effectiveness and financial management including coherence with co-financing; Risk management; Communication and dissemination; Ethics; Security; Declarations including PESCO and SME mid-cap bonuses, PRS, previous activities, double funding and FSTP details.
• Detailed Budget Table EDF LS DA Lump sum calculator detailing costs by activity type and Work Package and respecting funding rates, subcontracting limits and country restrictions.
• Participant Information EDF for each participant, affiliated entity, associated partner and subcontractor involved in the action. Includes legal details, descriptions, key staff to demonstrate operational capacity, relevant projects, and information on affiliated entities and associated partners including safeguards where relevant Participant Information template.
• List of Infrastructure, Facilities, Assets and Resources EDF listing all relevant assets, precise locations, and justifications for any exceptional use outside eligible countries, plus facility security clearance where applicable List of Infrastructure template.
• Cofinancing Declarations EDF Mandatory if the EU grant does not cover total eligible costs. Each co-financer must state form, amount, indicative availability date, process and timeline, and expected IPR-related return Cofinancing Declaration template.
• Actual Indirect Cost Methodology Declaration EDF DA Optional, only if declaring actual indirect costs. Must be signed by the participant and competent national pricing authority and include at least two comparable national defence projects accepted by the authority Actual Indirect Cost Methodology template.
• Harmonised Defence Capability Requirements Declaration EDF DA and DA LS Required for design activities, signed by competent authorities of at least two Member States or EDF associated countries, or intent if studies are still needed Harmonised Capability template.
• Declaration on Procurement Intent and Common Technical Specifications EDF DA and DA LS Required for prototyping, testing, qualification or certification activities, signed by competent authorities of at least two Member States or EDF associated countries stating coordinated procurement or use and common specifications or intent Procurement Intent template.
• Ownership Control Declaration and Ownership Control Guarantee Where relevant under Article 9 EDF Regulation, including approvals by competent national authority. A separated Ownership Control Guarantee template is available with detailed measures and approvals Ownership Control Guarantee template.
• PRS Declaration If Galileo PRS access is required, declaration by competent PRS authority stating authorisations or process started PRS Declaration template.
• Model Grant Agreement EDF, ASAP and EDIRPA Lump Sum MGA Legal and financial terms governing the action, including specific Annex 5 rules on security, ethics, IPR, communication and EDF-specific provisions MGA.
• Programme Security Instruction EDF PSI Generic and model-specific PSI texts governing security of classified information where applicable, including EUCI handling, transport, visits, sub-contracting security, and RESTREINT and higher classifications EDF PSI.

Who should apply

• Innovative SMEs established in EU Member States or in Norway with executive management in those countries, active in defence or with spin-in civil technologies at TRL 4 and above seeking to develop defence products, components, subsystems or enabling technologies.
• SME-led cross-border consortia of at least three SMEs from three different eligible countries aiming to carry out design, prototyping, testing, qualification, certification or lifecycle efficiency improvements.
• SMEs with planned uptake by at least two Member States or Norway for prototyping, testing, qualification or certification; or SMEs aligning design activities to harmonised capability requirements.
• SMEs planning to include FSTP to attract additional innovators, niche suppliers or start-ups into the defence value chain.

Frequently applied constraints and notes

• SME self-assessment in the Portal is mandatory for SME-only topics and must be completed by the proposal deadline. Changes in SME status during the project can affect funding bonuses and may trigger grant amendment or reduction.
• Subcontracting to two tiers down is possible, but subcontractors of subcontractors that need classified access or significant cost allocation must also provide ownership control declarations where applicable.
• Purchase of equipment outside EU or Norway may be eligible only if located and used on the territory of a Member State or associated country for the duration of the action and free from third-country control; otherwise, only depreciation is eligible and subject to call rules.
• Dissemination levels and classification will be determined during security scrutiny at grant preparation; plan accordingly in the proposal.

Categorisation and structured extraction

Eligible Applicant Types:SMEs only for beneficiaries and affiliated entities, with the coordinator an SME. SME may include research organisations or universities only if they qualify as SMEs and pass the SME self-assessment. Other actors may participate without funding or as subcontractors or associated partners, including mid-caps and large enterprises as subcontractors or associated partners. Public bodies can be supporting authorities providing capability requirement or procurement intent declarations but are not beneficiaries under this SME-only topic.

Funding Type:Grant in the form of a lump sum under the EDF Lump Sum Grants for Development Actions. Managed through a Contribution Agreement with EDA as entrusted entity after award decisions by the Commission.

Consortium Requirement:Consortium of minimum three independent SMEs from three different eligible countries. Single-applicant projects are not permitted. Coordinator must be an SME. Associated partners and subcontractors may be non-SME and do not count towards the minimum consortium composition.

Beneficiary Scope (Geographic Eligibility):EU Member States including their OCTs and EDF associated countries; currently Norway is associated. Executive management must be in eligible countries and entities must not be controlled by non-associated third countries unless Article 9(4) guarantees are approved by national authorities. Activities and resources must be located in eligible countries, with narrowly defined exceptional use outside without funding.

Target Sector:Defence. Cross-cutting with energy solutions, digital solutions, surveillance systems, infrastructure, operations support, lifecycle efficiency, and other STEP target investment areas. Encourages spin-in from civil technology domains such as ICT, AI, advanced materials, energy systems, sensors and surveillance, software services and industrial processes.

Mentioned Countries:European Union Member States; Norway as EDF associated country; Ukraine is eligible only as recipient of FSTP in this call; the United Kingdom is not eligible for EDF participation under the current programme.

Project Stage:Development stage from TRL 4 upwards. Activities may include design, system prototyping, testing, qualification, certification, and lifecycle efficiency improvements. Demonstration and validation in relevant or operational environments as part of testing and prototyping are expected for higher-TRL tasks.

Funding Amount:Up to €6,000,000 in EU contribution per proposal. Total topic budget €30,000,000. Activity-specific funding rates apply with bonuses potentially raising certain activities up to 100 percent and prototyping up to 55 percent.

Application Type:Open call with single-stage submission via the EU Funding and Tenders Portal. Part B and annexes must be submitted as a single password-protected ZIP archive, with password transmission by email as per call instructions.

Nature of Support:Financial support as grants. Non-financial support includes SME business coaching for successful beneficiaries. Optionally, beneficiaries may redistribute funds via FSTP to third-party innovators.

Application Stages:1 stage for submission and 1-step evaluation leading to invitation to grant preparation. Security scrutiny and ownership control assessment take place during grant preparation as needed.

Success Rates:Not specified in the call documentation. Funding is awarded competitively within the topic budget based on ranked evaluation results and thresholds.

Co-funding Requirement:Development Actions require that costs not covered by the EDF contribution are financed by other means. Cofinancing declarations are mandatory where the EU grant does not fully cover eligible costs. Given activity rates, co-funding is typically required for prototyping, testing, qualification and certification, and may be required for design and lifecycle efficiency activities unless bonuses raise the rate to 100 percent. Studies can reach up to 100 percent with bonuses, potentially removing the need for co-financing for that activity.

Templates: Application Form structures and annexes:Applicants must follow the official templates accessible from the topic page. Key elements are: Part A administrative data; Part B narrative structured across Excellence, Innovation, Competitiveness, EDTIB autonomy, Cross-border cooperation, Lifecycle efficiency, Member State cooperation and detailed Implementation with Work Packages, tasks, milestones and deliverables; Detailed Budget Table for lump sum calculation; Participant Information sheets; List of Infrastructure, Facilities, Assets and Resources; Cofinancing Declarations; Actual Indirect Cost Methodology Declaration if applicable; Harmonised Capability Requirements Declaration for design; Declaration on Procurement Intent and Common Technical Specifications for prototyping, testing, qualification or certification; Ownership Control Declaration and, where applicable, Ownership Control Guarantee with national authority approval; PRS Declaration if needed. Model Grant Agreement and EDF Programme Security Instruction provide the legal, financial and security framework.

How to get support

• Topic page and submission system EDF-2026-LS-DA-SME-NT.
• General EDF programme page, Info Days, tutorials and guidance EDF Programme.
• Call-specific helpdesk for this topic: DEFIS-EDF-PROPOSALS@ec.europa.eu. IT Helpdesk via the Funding and Tenders Portal for account, roles and submission issues.
• Partner search is available on the Portal. National Focal Points can advise on consortium building and national procedures.

Summary

EDF-2026-LS funds SME-led, cross-border development projects at TRL 4 and above across any defence-relevant domain, with a strong emphasis on disruptive innovation, spin-in from civil technologies and concrete pathways to Member State uptake. The topic uses lump sum grants with activity-specific funding rates and bonuses for PESCO context and SME and mid-cap participation, with strict SME eligibility for beneficiaries and a minimum consortium of three SMEs from three eligible countries. Proposals must include at least one of design, prototyping, testing, qualification, certification or lifecycle efficiency activities and, where applicable, attach Member State declarations on harmonised capability requirements and procurement intent with common specifications. The call enforces EDF ownership and control restrictions, security and ethics rules, and requires detailed planning through structured work packages, milestones and deliverables. With up to €6 million per project and €30 million overall, plus optional cascade funding to broaden the supply chain, this opportunity aims to strengthen the European defence technological and industrial base, enhance cross-border SME cooperation, accelerate SME growth, and support the EU’s strategic autonomy, all via a streamlined single-stage application on the EU Funding and Tenders Portal.

Non-Thematic Development Actions by SMEs - EDF 2026 Funding Opportunity

Opportunity Overview

The European Defence Fund (EDF) is launching a dedicated call for non-thematic development actions specifically targeting small and medium-sized enterprises (SMEs). This call encourages innovative SMEs to drive the development of defence products and technologies through a bottom-up, thematic-flexible approach. The opportunity is part of the EU Defence Innovation Scheme (EUDIS), designed to lower entry barriers and support SME-led innovation in the defence sector.

Call Identifier:EDF-2026-LS

Total Available Budget:€30,000,000

Maximum Grant per Project:€6,000,000

Application Period:11 February 2026 to 29 September 2026, 17:00 CET (single-stage submission)

Funding and Grant Structure

Grant Form:Lump sum grants. Unlike traditional cost-based reimbursement, lump sum grants provide a fixed amount determined during proposal evaluation. Beneficiaries do not need to report actual costs incurred; instead, they receive a predetermined amount upon successful completion of work packages. This approach simplifies financial reporting and reduces administrative burden.

Funding Rates by Activity Type:

Funding rates can be increased through bonuses: SME participation bonus (up to 5% for non-cross-border SMEs, up to 10% for cross-border SMEs), mid-cap bonus (up to 10%), and PESCO bonus (up to 10% for projects developed under Permanent Structured Cooperation). Project management and coordination activities are funded at the Studies rate (90% baseline, up to 100% with bonuses).

Prefinancing:Initial prefinancing of approximately 55% of maximum grant amount is typically provided after grant agreement entry into force. Additional prefinancing and interim payments may be available depending on project needs and reporting requirements.

Who Can Apply

Mandatory Consortium Composition

• Minimum 3 independent applicants (beneficiaries) from at least 3 different eligible countries
• All beneficiaries and affiliated entities must be SMEs (per EU Recommendation 2003/361/EC)
• The consortium coordinator must be an SME
• Applicants must register in the Participant Portal and complete SME self-assessment before proposal submission

Eligible Countries

All EU Member States are eligible. Additionally, Norway and other countries with association agreements to the EDF programme may participate. All legal entities must be established with executive management structure in eligible countries. Special provisions apply for international organisations and non-EU participants; the latter must not be controlled by non-associated third countries, though guarantees approved by Member State authorities may permit participation.

SME Definition and Requirements

SME status is mandatory for all applicants. Enterprises must meet EU Recommendation 2003/361/EC criteria: fewer than 250 employees and either annual turnover not exceeding €50 million or annual balance sheet total not exceeding €25 million. SME self-assessment data must be based on financial figures from the last closed accounting period and not older than 31 December 2024. Headcount and turnover must stay below the SME ceilings for two consecutive accounting periods; otherwise SME status is lost.

Scope and Eligible Activities

Technology Maturity Requirement:Proposals must address innovations starting from Technology Readiness Level 4 (TRL 4) and above. This ensures projects focus on development and maturation rather than fundamental research.

Thematic Flexibility:This is a non-thematic, bottom-up call. Proposals can address any defence-related technology development within the Strategic Technologies for Europe Platform (STEP) target investment areas. No predefined technology themes constrain applicants.

Mandatory Activities:

Proposals must include at least one activity from the following mandatory set: design, system prototyping, testing, qualification, certification, or increasing efficiency across product lifecycle. Pure research or knowledge generation activities are not eligible. Proposals must clearly describe work breakdown structure, link tasks to eligible activity types, and define measurable criteria for work package completion and functional progress.

Spin-In Opportunities:The call welcomes add-on development actions adapting technologies originally developed for civil applications and previously not applied in the defence sector. This recognises dual-use innovation and encourages efficient transition of civil technologies to defence markets.

Application Areas:

Proposals should address innovative defence products, solutions and technologies that improve readiness, deployability, reliability, safety and sustainability of defence forces. Examples include military operations, equipment, infrastructure, energy solutions, surveillance systems and digital solutions. All proposals must address at least one STEP target investment area.

Evaluation and Award Criteria

Proposals are evaluated against eight award criteria, each scored 0-5 with half-point increments allowed. The overall evaluation uses weighted scoring, with Excellence and Disruption and EDTIB Autonomy each weighted at 2, and Creation of Cross-Border Cooperation also weighted at 2. The remaining criteria (Innovation, Competitiveness, Lifecycle Efficiency, Member State Cooperation, Implementation) are each weighted at 1.

Overall Scoring:Maximum 55 points total. Minimum pass threshold is 37 points. Proposals not meeting this threshold will be rejected.

Key Evaluation Criteria ¹:

• Excellence and Potential of Disruption: Soundness of approach, compliance with call objectives, and disruptive potential versus existing defence products or technologies
• Innovation and Technological Development: Ground-breaking concepts, novel approaches, application of previously unused defence technologies, integration with existing R&D
• Competitiveness: Competitive advantage analysis, market growth potential, intellectual property strategy
• EDTIB Autonomy: Contribution to European Defence Technological and Industrial Base autonomy, security of supply, alignment with Member State capability priorities
• Creation of New Cross-Border Cooperation: Extent of new cross-border partnerships, especially involving SMEs and mid-caps across multiple Member States
• Lifecycle Efficiency: Improvements in cost-effectiveness, production, operational, maintenance and disposal efficiency
• Member State Cooperation: Demonstration of Member State commitment to jointly use, own or maintain final products or technologies
• Implementation: Work plan structure, milestones, deliverables clarity, management structures, risk assessment and mitigation

In case of tied proposals, priority is determined sequentially by scores on Excellence and Disruption, then Innovation and Technological Development, then Competitiveness, then Creation of New Cross-Border Cooperation. If still tied, priority goes to proposals with involvement from more Member States or EDF associated countries.

Financial Requirements and Conditions

Co-Financing Requirement:Development actions require demonstration that costs not covered by EDF funding are financed through other means such as Member State contributions, associated country funding, or co-financing from legal entities. Mandatory co-financing declarations signed by co-financers must be submitted with proposals.

Budget Flexibility:Budget flexibility does not apply to lump sum grants. Any changes to the estimated budget breakdown require a formal grant agreement amendment. Transfers between work packages are possible only if the work packages concerned are not already completed and declared in financial statements, and transfers must be justified by the technical implementation of the action.

Subcontracting Limits:Subcontracting is strictly limited to 30% of total eligible costs per beneficiary and affiliated entity. Subcontracting costs above this threshold will lead to proposal rejection or grant reduction. All subcontracting must be performed in eligible countries unless approved by the granting authority.

Equipment Costs:Equipment costs are reimbursed via depreciation plus full cost for specifically listed equipment. For system prototyping activities, full cost is applied. All equipment must be located in eligible countries during project duration.

Indirect Costs:Beneficiaries may declare either a flat-rate of 25% on eligible direct costs (excluding subcontracting, financial support to third parties, and certain exempted categories) or actual indirect costs if the beneficiary fulfils conditions and obtains approval from national pricing authorities.

Mandatory Supporting Documents and Declarations

Proposal submissions require extensive mandatory documentation. Failing to provide all documents in correct format by the deadline renders proposals inadmissible, which may also trigger ineligibility of specific participants or rejection of proposals.

Required Application Documents:

• Application Form Part A (administrative information, filled directly online)
• Application Form Part B (technical description, maximum 100 pages)
• Detailed budget table for lump sum development actions
• Participant information form with profiles and previous projects
• List of infrastructure, facilities, assets and resources to be used
• Co-financing declarations from all co-financers (mandatory)
• Actual indirect cost methodology declarations (if claiming actual indirect costs)
• Harmonised capability requirements declarations (if proposing design activities)
• Declarations on procurement intent and common technical specifications (if proposing prototyping, testing, qualification or certification)
• Ownership control declarations for all beneficiaries and affiliated entities
• Galileo PRS declaration (if project requires Galileo Public Regulated Service access)
• Declaration of honour at grant signature confirming continued eligibility

Part B and all annexes must be submitted as a single password-protected zip file using AES-256 encryption. The password must be communicated separately to DEFIS-EDF-PROPOSALS-PWD@ec.europa.eu before the submission deadline. Documents must be readable, accessible and printable. Proposals exceeding page limits will have excess pages disregarded by evaluators.

Special Requirements and Conditions

Harmonised Defence Capability Requirements:Proposals addressing design activities must include evidence that these activities are based on harmonised defence capability requirements jointly agreed by at least two Member States or EDF associated countries. This requires submission of harmonised capability requirements declarations signed by at least two Member States.

Procurement Intent and Common Technical Specifications:Proposals addressing prototyping, testing, qualification or certification activities must provide evidence that at least two Member States or EDF associated countries intend to procure the final product or use the technology in a coordinated manner, including through joint procurement where applicable. Common technical specifications jointly agreed by procuring Member States must be documented through procurement intent declarations.

Security and Classified Information:Projects may involve classified information up to SECRET UE/EU SECRET or national classification levels. Applicants must identify any classified information needs at proposal stage. If selected, the project will undergo security scrutiny to determine classification levels. A Security Aspects Letter (SAL) will be annexed to the grant agreement specifying security requirements. Projects involving classified information at these levels require Facility Security Clearance (FSC) at appropriate levels for beneficiary facilities. At least one beneficiary in a consortium must have FSC before grant agreement signature. Classified information handling follows Commission Decision 2015/444 and applicable national security regulations.

Ethics Compliance:Proposals must comply with highest ethical standards and applicable EU, international and national law. Projects may be subject to specific ethics rules included in grant agreements as ethics deliverables. Ethics issues must be self-assessed in the application; proposals addressing human embryonic stem cells, human embryos, human subjects, personal data, animals, or other ethics-sensitive topics require detailed ethical compliance descriptions.

Intellectual Property and Background:Beneficiaries must provide access to background (pre-existing knowledge, data and information) needed for project implementation. Background is identified in proposals; beneficiaries must ensure ability to comply with obligations regarding background access. The granting authority obtains no ownership of results generated by the project. Beneficiaries retain result ownership, subject to EU visibility and communication rights. Specific IPR arrangements must be included in consortium agreements.

Communication, Dissemination and Visibility:Beneficiaries must promote actions and results through targeted information to media and public in strategic, coherent and effective manner. Before major media impact activities, the granting authority must be informed. All communication must acknowledge EU support and display the European flag with the funding statement translated into local languages where appropriate. The disclaimer 'Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or [granting authority]. Neither the European Union nor the granting authority can be held responsible for them' must be included. For EDF projects, communication activities require prior written approval from the granting authority due to security considerations.

Project Timeline and Payment Schedule

Project Starting Date:Normally the first day of the month following grant agreement entry into force. Retroactive starting dates are exceptionally possible for justified reasons but cannot be earlier than proposal submission date.

Evaluation Timeline:Evaluation is expected to occur September 2026 to March 2027. Information on evaluation results will be provided in March 2027. Grant agreements are targeted for signature by 31 December 2027.

Payment Arrangements:

Initial prefinancing of approximately 55% of maximum grant amount is paid 30 days from entry into force (or from financial guarantee provision if required, whichever is latest). Additional prefinancing payments may be available if less than 70% of previous prefinancing was used. Interim payments are made upon approval of periodic reports, capped at 90% of maximum grant. Final payment follows final report approval. All payments are made to the coordinator and must be distributed to other beneficiaries without unjustified delay. Payments are offset against any debts owed to the granting authority.

Reporting Requirements:Beneficiaries must report continuously on project progress via Portal Continuous Reporting tool (deliverables, milestones, outputs, risks, indicators). Periodic reports are required for additional prefinancings, interim payments and final payment, submitted 60 days after reporting period end. Final report is submitted to request final payment. Financial statements within periodic reports must list lump sum contributions for completed work packages. Incomplete or not-yet-delivered work packages may be rejected.

Risk Management and Compliance

Audit and Verification Rights:The granting authority, OLAF, EPPO, and the European Court of Auditors have rights to conduct checks, reviews, audits and investigations during project implementation and for 5 years after final payment (3 years for grants not exceeding €60,000). Beneficiaries must provide complete information, access to sites and premises, and supporting documentation upon request. On-the-spot visits and inspections may be conducted.

Record-Keeping Obligations:Beneficiaries must keep records and supporting documents for at least 5 years after final payment (3 years for grants under €60,000) to prove proper project implementation. Records must be retained until completion of ongoing checks, audits, investigations or litigation. Digital and digitalised documents are considered originals if authorised by applicable national law.

Grant Reduction and Recovery:The granting authority may reduce grants if beneficiaries commit substantial errors, irregularities, fraud or serious breach of obligations. Extension of findings procedures allow corrections based on systemic or recurrent errors discovered in related grants. Ineligible lump sum contributions are rejected. Recoveries are made through pre-information letters followed by confirmation letters and debit notes. Enforced recovery mechanisms include offsetting against amounts owed to the granting authority, drawing on financial guarantees, joint and several liability of other beneficiaries (if required), or legal action.

Conflict of Interest:Beneficiaries must prevent situations where impartial and objective implementation could be compromised due to family, emotional, political, national affinity, economic interest or other direct or indirect interests. Any actual or potential conflicts must be formally notified to the granting authority without delay, with immediate steps taken to rectify the situation. Breaches may lead to grant reduction, termination, or other measures.

Termination Conditions:The granting authority may terminate grants or individual beneficiary participation if serious breach of obligations occurs, substantial errors or fraud are committed, financial or operational capacity becomes unsatisfactory, exclusion grounds apply, or circumstances make project completion or conditions compliance impossible. Beneficiaries may request termination if circumstances prevent performance. Termination procedures include pre-information letters allowing 30 days for observations before confirmation.

Application Process and Submission

Registration Requirements:All beneficiaries, affiliated entities and subcontractors involved in the action must register in the Participant Register before proposal submission. Beneficiaries and affiliated entities claiming SME/mid-cap bonuses must complete the online SME self-assessment (or mid-cap self-declaration). All entities subject to ownership control assessment must register and complete relevant declarations. A 9-digit Participant Identification Code (PIC) is generated for each participant.

Submission Method:All proposals must be submitted electronically via the EU Funding & Tenders Portal Electronic Submission System. Paper submissions are not accepted. Submission is a 2-step process: Part A (administrative information) is filled in directly online; Part B (technical description) and annexes are downloaded from the Portal, completed, and uploaded as a single password-protected zip file encrypted with AES-256. The password must be communicated separately via email to DEFIS-EDF-PROPOSALS-PWD@ec.europa.eu before the submission deadline along with proposal ID and zip filename.

Submission Deadline:29 September 2026, 17:00 CET (Brussels time). After this deadline, the system closes and no further submissions are accepted. Submission confirmation emails are sent upon successful submission; lack of confirmation indicates submission failure.

Support and Guidance:For IT-related questions and technical issues with the submission system, applicants should contact the IT Helpdesk via the Portal. For non-IT questions related to the call, proposals and evaluation, contact DEFIS-EDF-PROPOSALS@ec.europa.eu with clear reference to the call identifier EDF-2026-LS and topic. The Portal Topic page (Q&A section) contains responses to common questions. The Funding & Tenders Portal Online Manual provides step-by-step guidance on registration, submission and Portal processes. EU Grants AGA (Annotated Grant Agreement) documents provide detailed explanations of grant agreement provisions.

Applicant Advice:Submit applications well in advance of the deadline to avoid last-minute technical problems; deadline extensions cannot be granted. Consult the Portal Topic page regularly for updates and clarifications. If proposals involving classified information will be submitted, contact the granting authority well in time to arrange special delivery procedures. Ensure all mandatory annexes are provided in correct format; incompleteness leads to inadmissibility. Verify that online summarised budget table amounts match detailed budget table calculations; online table amounts prevail in case of discrepancies. Check application readability and layout compliance before submission.

Key Success Factors and Recommendations

• Establish genuine cross-border SME consortia with clear complementary roles and expertise in defence technology development
• Develop well-defined work packages with measurable outcomes; clearly map proposed tasks to eligible activity types (design, prototyping, testing, qualification, certification, efficiency)
• Include at least two Member States committed to procuring or jointly using final products/technologies for prototyping, testing, qualification or certification activities
• Secure documented co-financing from public authorities or industry partners to cover non-EU-funded costs
• Emphasise disruptive innovation potential and competitive advantages over existing defence solutions
• Demonstrate strong market analysis, growth potential and credible intellectual property strategy
• Highlight contributions to European Defence Technological and Industrial Base autonomy and security of supply
• Include robust risk management strategies identifying critical implementation risks and mitigation measures
• Plan effective communication and dissemination activities with security considerations
• Ensure all participants complete SME self-assessments and participate in Participant Register registration before submission
• Conduct internal compliance review confirming all eligibility criteria are met before proposal submission

Contact and Support Resources

Primary Contact for Non-IT Questions:DEFIS-EDF-PROPOSALS@ec.europa.eu

Password Communication Email:DEFIS-EDF-PROPOSALS-PWD@ec.europa.eu

IT Helpdesk:Contact via Portal IT Helpdesk webform for access rights, technical submission issues and forgotten passwords

Online Resources:Funding & Tenders Portal Online Manual, Portal FAQ, Topic page with Q&A section, EU Grants AGA documentation, EDF Work Programme 2026, EDF Regulation 2021/697, EU Financial Regulation 2024/2509

Additional Support:National Focal Points (NFPs) designated by Member States can provide guidance on EDF opportunities and help identify potential partners. EDF Info Days and webinars provide comprehensive orientation on the programme, evaluation criteria and best practices. DG DEFIS webpage lists previously funded projects for sector insights.

Footnotes

1. 1Full award criteria descriptions and scoring methodology are detailed in Section 9 of the Call document. Each criterion is scored 0-5 with half-point increments. Overall threshold for funding is 37 points. Weighting factors apply: Excellence and Disruption (weight 2), EDTIB Autonomy (weight 2), Creation of Cross-Border Cooperation (weight 2), and Innovation, Competitiveness, Lifecycle Efficiency, Member State Cooperation, Implementation (each weight 1).