Transaction Costs Support for social finance intermediaries

Transaction Costs Support for Social Finance Intermediaries ESF-2026-AG-TCS is an ESF+ EaSI call providing grants to subsidise transaction costs for long-term risk capital investments (equity, quasi-equity or hybrid) into social enterprises and mission-driven enterprises. Eligible applicants are established financial intermediaries, such as investment funds, fund managers, fund-of-funds, special purpose vehicles or managing organisations, based in EU Member States, EEA countries or ESF+ associated countries, and single applicants or consortia may apply. The total call budget is €4,700,000 with indicative grants of €400,000 to €750,000 per project at a funding rate of 80% of eligible costs and transaction cost support normally capped at 10% of the expected portfolio (15% for average tickets under €300,000); maximum cumulative investment per investee eligible for support is €1,000,000 over 18 months. Call opens 18 June 2026 and the submission deadline is 23 September 2026 at 17:00 CET, applications must be submitted electronically via the Funding & Tenders Portal using the ESF application templates.

Call at a glance

EU programme: ESF+ (EaSI strand)

What it funds:Grants to cover part of transaction costs linked to long-term risk capital investments (equity, quasi-equity or hybrid finance) into social enterprises and mission-driven enterprises. Eligible transaction costs include due diligence, legal advice, travel, business development, impact measurement setup, etc.

Who can apply:Financial intermediaries or managers/coordinators of investment funds, fund-of-funds, special purpose vehicles or co-investment schemes established in eligible countries (EU Member States and ESF+ associated countries). Applicants may include consortia; affiliated entities and associated partners rules apply as per the call document.

1. 1Target investments: individual tickets below €1 000 000 per investee (cumulative over 18 months).
2. 2Project duration: normally 36–48 months.
3. 3Eligible activities: preparation, conclusion and follow-up of small long-term investments (screening, DD, legal docs, investor mobilisation, investee support, impact measurement), plus EU added-value activities (cross-border cooperation, innovative tools, dissemination).

Expected applicants should ensure transaction-cost support requests do not exceed 10% of the applicant’s expected investment portfolio (up to 15% for applicants with average tickets < €300 000).

Budget and award information:Total estimated call budget €4 700 000; expected to fund about 8–10 projects; typical requested grant sizes indicated €400 000–€750 000 per project; funding rate 80% (budget-based mixed actual cost grant).

1. 1Maximum investment per investee eligible for transaction-cost support: €1 000 000 over 18 months (investments that push cumulative amount above that threshold within 18 months make earlier costs ineligible).
2. 2Project budgets are expected in the €400K–€750Krange but other amounts may be considered.
3. 3Grants are budget-based with unit cost elements for travel and flat-rate indirect costs (7%).

How to apply:prepare Application Form Part A (online) and Part B (PDF upload) and required annexes, register all participants in the Participant Register (PICs) and submit electronically through the Funding & Tenders Portal. Proposals are limited to 40 pages for Part B and must respect eligibility and documentation rules in the call document.

Selection and key conditions

Evaluation based on Relevance (30), Quality (45) and Impact (25), overall pass score 70/100 with individual thresholds. Projects must demonstrate European/trans‑national added value and plans to monitor results. Financial and operational capacity checks apply; certificates may be requested for grants above thresholds.

Key facts and deadlines

Call identifier:ESF-2026-AG-TCS. Programme: ESF+ Employment and Social Innovation (EaSI) strand. Call type: Call for Proposals — ESF Project Grants (Action grant, budget-based mixed actual cost grant). Total estimated call budget: €4 700 000. Expected number of grants to be funded: 8 to 10 projects. Indicative project budget range: commonly €400 000 to €750 000 per project. Funding rate: up to 80% of eligible costs. Call opening date: 18 June 2026. Submission deadline: 23 September 2026, 17:00 CET (Brussels time). Submission modality: single-stage, electronically only via the EU Funding & Tenders Portal Electronic Submission System. Evaluation period: October to December 2026. Information to applicants: January 2027. Grant signature: February–March 2027. Info session: online 10 July 2026 (registration required).

Objective, scope and expected outcome

General objective:to develop the social enterprise finance market by supporting social finance intermediaries that provide long-term risk capital to social enterprises and mission-driven enterprises. Key objective: catalyse risk-capital investments below €1 000 000 per investee (maximum per investee over 18 months), by covering part of the transaction costs associated with small ticket long-term risk capital investments that otherwise would not occur. The scheme supports transaction costs such as due diligence, legal advice, travel, business development support, impact measurement and management system setup, and related costs. The call promotes European added value including cross-border and trans-national schemes, dissemination of good practices and support towards emerging social finance markets. The transaction costs support is provided as grant funding and can be combined with financial instruments.

Eligible activities and investment types

Long-term risk capital investments targeted:equity, quasi-equity and hybrid financing. Eligible transaction cost activities include but are not limited to: travel to meet investees, screening and processing investment applications, legal document preparation, due diligence (including impact assessment), investment readiness and business restructuring support, establishing impact measurement and management plans/systems, bringing in co-investors and investor syndication activities, managing investments and social impact, and testing or developing innovative tools to reduce transaction costs. Activities that support EU added value such as cross-border investments, experience sharing, capacity building in emerging markets, dissemination and policy support are supported.

Who can apply and eligible roles

Eligible applicants:legal entities, public or private bodies, established in eligible countries (EU Member States and ESF+ Associated Countries; EEA and other countries listed in call document where association applies). The lead applicant or single applicant must be either: an established investment fund, fund-of-funds, special purpose vehicle or co-investment scheme; or an organisation that manages a ready-to-be-established investment fund, fund-of-funds, SPV or co-investment scheme (managing entity must be an established legal entity at submission). Natural persons are not eligible except self-employed sole traders. International organisations are not eligible. Affiliates, associated partners, subcontractors and other participants can be included in the proposal in appropriate roles.

Eligible applicant types:Investment funds, fund managers, special purpose vehicles, fund-of-funds, financial intermediaries, public bodies, private bodies, SMEs, non-profit legal entities and other legal bodies established in eligible countries; associated partners, subcontractors and affiliated entities may participate under the conditions set out in the call.

Geographic eligibility, target beneficiaries and sectors

Geographic scope:actions must target and implement activities in EU Member States and ESF+ Associated Countries. Eligible investees: social enterprises as defined by the ESF+ Regulation and mission-driven enterprises (commercial entities that intentionally pursue social or environmental objectives integrated in business model and governance). Sector focus: social enterprise finance and social economy; the call targets the social enterprise / mission-driven enterprise sector and intermediaries operating in social finance and impact investing markets.

Mentioned countries / regions:EU Member States and ESF+ Associated Countries; EEA countries where applicable; specific non-EU participation rules are described in the call document (list of participating countries available in the call document).

Grant characteristics and financial rules

Form of grant:budget-based mixed actual cost grant reimbursing eligible actual costs with unit cost and flat-rate elements. Funding rate: 80% of eligible costs as indicated; no-profit rule applies. Eligible project duration: normally 36 to 48 months. Maximum per-investee long-term risk capital investment covered by the scheme: €1 000 000 over an 18-month period. Transaction costs support should normally not exceed 10% of the total expected investment portfolio; for applicants with average investment tickets under €300 000 the limit is 15%.

Funding Amount and Budget:Call total budget €4 700 000. Indicative request per project normally between €400 000 and €750 000. Expected 8-10 projects to be funded. Applicants may request other amounts but award may be lower than requested ¹.

Eligibility conditions and exclusions

Mandatory eligibility points:applicants must be legal entities registered in eligible countries, registered in the Participant Register (PIC) and validated, and must have the mandate to act for all applicants at submission. Lead applicant must be an investment fund or manager as described. Projects must align entirely with the general objective of the call. Financial support to third parties is NOT allowed under this call. Natural persons except self-employed are not eligible; international organisations are not eligible. Exclusion grounds apply (bankruptcy, fraud, grave professional misconduct, etc.). Entities subject to EU restrictive or conditionality measures are ineligible.

Project design, duration and budget details

Project duration:normally between 36 and 48 months. Project budgets requested typically €400 000 to €750 000. Expected ticket sizes supported: long-term risk capital below €1 000 000 per investee over an 18-month window. Transaction-cost support should cover part of transaction costs only, representing up to 10% of expected investment portfolio (15% for average tickets < €300 000). The grant is budget-based: eligible cost categories include personnel, subcontracting, travel and subsistence (unit costs allowed per Commission decisions), equipment depreciation, other goods and services and indirect costs at a flat rate of 7% of eligible direct costs (categories A-D, excluding volunteer costs where applicable). Non-deductible VAT may be eligible subject to conditions.

Application and submission process

Application must be submitted electronically via the EU Funding & Tenders Portal. Paper submissions are not accepted. Submission is single-stage. Application components: Part A (administrative forms, online), Part B (technical description in the provided PDF template) and mandatory annexes uploaded as PDF files. Required annexes: CVs of core project team, annual activity report, list of previous projects (last 5 years) and other templates available in the Submission System. Proposals must be no more than 40 pages for Part B and must be readable, accessible and printable. Applicants must confirm mandate to act, and declarations of honour will be required before grant signature.

Application type and templates:Single-stage open call via Funding & Tenders Portal. Use ESF & SOCPL application templates available in the Submission System: Application Form Part A (online), Application Form Part B (standard ESF/SOCPL Part B template), detailed budget table (as required), CV templates, activity reports and list of previous projects. Submission system enforces page and format limits; upload mandatory annexes as PDF.

Evaluation, award criteria and selection

Evaluation procedure:one-stage submission with one-step evaluation by an evaluation committee. Admissibility and eligibility checks first; proposals passing those checks are evaluated on award criteria: Relevance (max 30 points), Quality (Project design and implementation max 30; Project team and cooperation arrangements max 15), Impact (max 25). Individual thresholds: Relevance 21/30, Quality (design) 21/30, Quality (team) 10/15, Impact 18/25. Overall threshold 70/100. Ranked projects will be funded within available budget and subject to legal and financial checks during grant preparation (legal entity validation, financial capacity assessment, exclusion checks).

1. 1Award criteria: 1) Relevance (30 pts), 2) Quality (30 + 15 pts), 3) Impact (25 pts).
2. 2Proposals must pass individual and overall thresholds to be considered for funding.
3. 3In case of equal scores, priority rules apply favouring uncovered themes, higher Relevance score, then Impact, then Quality, and finally portfolio balance and synergies.

Application stages, timeline and success path

Number of stages:Submission is single-stage. Overall practical stages to award: 1 Submission, 2 Evaluation and ranking, 3 Invitation to grant preparation (includes legal entity validation, financial capacity checks and possible requests for additional information), followed by Grant Agreement signature if all checks are positive. Grant preparation may include negotiations and adjustments to Annex 1 and the budget. The process includes continuous reporting obligations and grant management through the Portal once awarded.

Info session and help:An online info session is organised for applicants (10 July 2026). For questions contact EMPL-EaSI@ec.europa.eu for general ESF+ queries and EMPL-SOCIAL-ENTERPRISE@ec.europa.eu for call-specific questions. IT helpdesk support is available for submission system issues. Consult the Funding & Tenders Portal Online Manual and call documents for instructions.

Financial capacity, co-funding and rules on revenues

Applicants must demonstrate stable and sufficient financial resources and operational capacity. Financial capacity checks apply except for public bodies or if individual grant requested is ≤ €60 000. Co-funding: the grant finances up to 80% of eligible costs; beneficiaries must bear the remaining share and/or mobilise additional resources (own funds, income or other contributions). No-profit rule applies: grants may not produce a profit; for-profit organisations must declare project revenues and profits will be deducted. Prefinancing and payment schedules depend on project duration; prefinancing guarantees may be requested in grant preparation.

Consortium requirement, partners and roles

Consortium:both single applicants (mono-beneficiary) and consortia are allowed. There is no mandatory minimum number of partners. All consortium members must meet eligibility criteria. Roles: beneficiaries, affiliated entities (participate with similar rights and costs), associated partners (no funding), subcontractors, third parties giving in-kind contributions. Consortium agreement is recommended to define internal arrangements and payment distribution.

Project maturity and stage targeted

Expected project stage:practical implementation of social finance operations and market development activities. Proposals should be at the stage of operational financial intermediation and investment deployment, including demonstration and scaling of cross-border or innovative transaction-cost reducing solutions, capacity building of intermediaries and direct investor activity to catalyse sub-€1 000 000 investments. Research-only or early idea-stage projects are not the primary target.

Success rates and funding chances

The call expects to fund 8 to 10 projects with total budget €4 700 000. No historical numerical success rate is provided in the call document. Successful selection depends on meeting eligibility, passing thresholds and ranking. Given the available budget and typical grants between €400 000 and €750 000, competition may be significant; applicants should aim for strong alignment with objectives, clear EU added value, feasibility and cost effectiveness.

Co-funding requirement

Yes. The grant finances up to 80% of eligible costs. Applicants must therefore provide the complementary funding (minimum 20%) from own resources, other contributions or income. Applicants must demonstrate stable financial resources and capacity to co-fund and implement the action.

Templates, forms and application structure

Applications must be prepared using the templates in the Portal Submission System. Required components: Application Form Part A (administrative details entered online), Application Form Part B (technical description using ESF/SOCPL Part B template uploaded as PDF), annexes and supporting documents uploaded as PDF. Mandatory annexes typically include CVs of core team members, activity report for the last year, list of previous projects (key projects last five years) and any call-specific annexes. Part B must not exceed 40 pages. Budget tables and calculators are provided where relevant. Delivery milestones and deliverables must be included and will be managed in the Portal Grant Management system if selected.

1. 1Application Part A: administrative information and summary budget (entered online).
2. 2Application Part B: technical narrative using the provided template (upload PDF).
3. 3Annexes: CVs, activity report, list of previous projects, detailed budgets where required.
4. 4Maximum Part B length: 40 pages; adherence to formatting rules mandatory.

Reporting, deliverables and monitoring

Beneficiaries must include milestones and deliverables in proposals and manage them via the Portal Grant Management System. Continuous reporting in the Portal is required for progress and deliverables. Final reporting must include monitoring and evaluation strategy, quantitative and qualitative indicators, and evidence on the achievement of expected results. Deliverables demonstrating progress and main results must be made public unless sensitive. Beneficiaries must support EU surveys for events and activities when requested.

Risks and limiting conditions

Key limitations:the long-term capital investment per investee must not exceed €1 000 000 over 18 months. If cumulative investments exceed €1 000 000 within 18 months, costs related to earlier investments become ineligible and any related Commission payments are recoverable. Subcontracting above 30% of total eligible costs requires justification. Financial capacity, exclusion checks and legal entity validation may lead to requests for guarantees, staged prefinancing, or additional arrangements. Projects must respect EU policy priorities and values; ineligible activities include financial support to third parties under this call.

Success checklist for applicants

1. 1Confirm legal entity status and register in Participant Register (obtain validated PIC).
2. 2Ensure lead applicant is an eligible investment fund/manager/SPV or equivalent manager entity established at submission.
3. 3Prepare Part B within the 40-page limit, addressing award criteria and including realistic indicators, milestones and deliverables.
4. 4Prepare annexes: CVs, activity report, list of previous projects and financial documents if requested.
5. 5Demonstrate financial and operational capacity, and provide evidence of co-funding and sustainability.
6. 6Ensure transaction-cost support request aligns with the 10% (or 15%) portfolio guidance and ticket thresholds.
7. 7Submit online via Funding & Tenders Portal before 23 September 2026, 17:00 CET.

Categorization answers (structured extraction)

Practical next steps for applicants

1 Register your organisation in the Participant Register and obtain a validated PIC. 2 Ensure the lead applicant is an eligible investment fund/manager or manager entity and that all partners meet eligibility. 3 Download and use the ESF/SOCPL Part B template from the Submission System and prepare annexes (CVs, activity report, list of previous projects, budgets). 4 Prepare a clear investment portfolio description showing expected portfolio size, average ticket size, and justify the transaction-cost support request, respecting the 10% or 15% guidance. 5 Include a monitoring and evaluation plan with measurable indicators and deliverables. 6 Submit through the Funding & Tenders Portal before the deadline, keeping to the 40-page limit for Part B.

Comprehensive summary

This ESF+ EaSI call funds transaction costs support for social finance intermediaries that provide long-term risk capital investments under €1 000 000 in social enterprises and mission-driven enterprises across EU Member States and ESF+ Associated Countries. The instrument is a budget-based action grant with an available call budget of €4 700 000, expected to finance 8–10 projects. The aim is to remove market frictions and catalyse small-ticket equity, quasi-equity or hybrid investments by subsidising the transaction costs that make these investments commercially and socially viable. Applications must be submitted electronically via the EU Funding & Tenders Portal using the ESF/SOCPL templates (Part A and Part B). Projects typically run 36–48 months, request grants in the €400 000–750 000 range, and will be evaluated on relevance, quality and impact, with strict eligibility, financial capacity and exclusion checks. The grant funds up to 80% of eligible costs and beneficiaries must show co-funding. The call encourages European added value, cross-border cooperation, dissemination of good practice and innovative approaches to structurally lower transaction costs. Successful proposals will enter grant preparation and must comply with the Grant Agreement, reporting, visibility and audit obligations.

For full details, instructions, templates and the definitive list of eligible countries, applicants must consult the Call Document and Submission System on the EU Funding & Tenders Portal and the associated Model Grant Agreement and Online Manual. Registration for the dedicated info session is available via the EU Survey link on the topic page; the info session will be recorded and made available to registrants.

Link to the topic page and call document:Transaction Costs Support for social finance intermediaries — Topic details Call document PDF Submission entry point Info session registration form Portal Online Manual ¹

Footnotes

1. 1Call document and topic page on the EU Funding & Tenders Portal contain the authoritative and detailed rules, templates and country lists. Applicants must consult the Portal topic page and call document before preparing and submitting proposals.

Overview and Key Objective

This call aims to further develop the social enterprise finance market by supporting social finance intermediaries to provide capital to social enterprises and mission-driven enterprises ¹. The key objective is to catalyse risk capital investments below €1,000,000 that otherwise would not happen, by subsidising the transaction costs associated with these low-value investment tickets ².

Who Should Apply

Eligible applicants are financial intermediaries that undertake long-term risk capital investments in ticket sizes of less than €1,000,000 in social enterprises and mission-driven enterprises ¹. Specifically, the lead applicant must be an established legal entity of an investment fund, Fund-of-Funds, special purpose vehicle, or (co-)investment scheme, or the organisation managing such a fund ³. Both single applicants and consortia are accepted ².

Eligible Countries:Applicants must be established in EU Member States (including overseas territories), EEA countries, or countries associated to the ESF+ programme ³.

Investment Criteria and Scope

Investments must be long-term risk capital in the form of equity, quasi-equity, or hybrid financing ². If cumulative investments in the same enterprise exceed €1,000,000 within 18 months, costs related to the first investment become ineligible for grant support ¹.

Activities Funded

1. 1Due diligence and screening of potential investees
2. 2Legal documentation and advice fees
3. 3Travel costs to meet investees
4. 4Business development and investment readiness support
5. 5Development of impact measurement and management plans
6. 6Engagement of co-investors
7. 7Cross-border knowledge exchange and dissemination of good practices

Budget and Financial Details

The grant covers 80% of eligible costs, with the remaining 20% covered by the applicant's own resources or other non-EU sources ¹. Indirect costs are calculated at a flat rate of 7% of eligible direct costs ³.

Timeline and Deadlines

1. 1Call Opening: 18 June 2026
2. 2Submission Deadline: 23 September 2026 at 17:00 CET (Brussels time)
3. 3Info Session: 10 July 2026 at 10:00 CET (Registration required by 8 July)
4. 4Evaluation Period: October - December 2026
5. 5Grant Signature: February - March 2027

Applications must be submitted electronically via the Funding & Tenders Portal; paper submissions are not possible ¹. The proposal (Part B) is limited to a maximum of 40 pages ³.

Evaluation Criteria

Proposals are evaluated based on Relevance (30 points), Quality (45 points total:30 for design, 15 for team), and Impact (25 points), with an overall threshold of 70 points and individual thresholds per criterion ³.

Footnotes

1. 1Official Call Document: Transaction Costs Support for social finance intermediaries ESF-2026-AG-TCS, Version 1.0, 11 June 2026 ESF Call Doc.
2. 2Euro Access Summary: Transaction Costs Support for social finance intermediaries Euro Access.
3. 3Impact Europe Summary: Transaction costs support for social finance intermediaries Impact Europe.