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  1. An institution, body, office or agency established by or based on the Treaty on European Union and the Treaties establishing the European Communities.

    All education and training facilities for people of different age groups.

    An intergovernmental organization having legal personality under public international law or a specialized agency established by such an international organization. An international organization, the majority of whose members are Member States or Associated Countries and whose main objective is to promote scientific and technological cooperation in Europe, is an International Organization of European Interest.

    An NPO is an institution or organization which, by virtue of its legal form, is not profit-oriented or which is required by law not to distribute profits to its shareholders or individual members. An NGO is a non-governmental, non-profit organization that does not represent business interests. Pursues a common purpose for the benefit of society.

    A partnership, corporation, person, or agency that is for-profit and not operated by the government.

    Any government or other public administration, including public advisory bodies, at the national, regional or local level.

    A research institution is a legal entity established as a non-profit organization whose main objective is to conduct research or technological development. A college/university is a legal entity recognized by its national education system as a university or college or secondary school. It may be a public or private institution.

    A microenterprise, a small or medium-sized enterprise (business) as defined in EU Recommendation 2003/361. To qualify as an SME for EU funding, an enterprise must meet certain conditions, including (a) fewer than 250 employees and (b) an annual turnover not exceeding EUR 50 million and/or an annual balance sheet total not exceeding EUR 43 million. These ceilings apply only to the figures for individual companies.

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  1. Administration & Governance, Institutional Capacity & Cooperation 

    This topic focuses on strengthening governance, fostering institutional capacity, and enhancing cross-border cooperation. It includes promoting multilevel, transnational, and cross-border governance by designing and testing effective structures and mechanisms, as well as encouraging collaboration between public institutions on various themes. 

    Innovation capacity and awareness are also key, with actions aimed at increasing the ability of individuals and organizations to adopt and apply innovative practices. This involves empowering innovation networks and stimulating innovation across different sectors. 

    Institutional cooperation and network-building play a crucial role, supporting long-term partnerships to improve administrative processes, share regional knowledge, and promote intercultural understanding. This also includes cooperation between universities, healthcare facilities, schools, sports organizations, and efforts in management and capacity building. 

    This topic focuses on strengthening the agricultural, forestry, and fisheries sectors while ensuring sustainable development and environmental protection. It covers agricultural products (e.g., fruits, meat, olives), organic farming, horticulture, and innovative approaches to sustainable agriculture. It also addresses forest management, wood products, and the promotion of biodiversity and climate resilience in forestry practices.

    In the food sector, the focus lies on developing sustainable and resilient food chains, promoting organic food production, enhancing seafood products, and ensuring food security and safety. Projects also target the development of the agro-food industry, including innovative methods for production, processing, and distribution.

    Fisheries and animal management are essential aspects, with an emphasis on sustainable fishery practices, aquaculture, and animal health and welfare. This also includes efforts to promote responsible fishing, marine conservation, and the development of efficient resource management systems.

    Soil and air quality initiatives play a crucial role in environmental protection and public health. This includes projects aimed at combating soil and air pollution, implementing pollution management systems, and preventing soil erosion. Additionally, innovative approaches to improving air quality—both outdoors and indoors—are supported, alongside advancing knowledge and best practices in soil and air management.

    This topic focuses on protecting the environment, promoting biodiversity, and addressing the challenges of climate change and resource management. It includes efforts to mitigate and adapt to climate change, develop low-carbon technologies, and reduce GHG emissions. Biodiversity promotion and natural protection are key aspects. 

    It also covers improving soil and air quality by reducing pollution, managing contamination, preventing soil erosion, and enhancing air quality both outdoors and indoors. Water management plays an essential role, including sustainable water distribution, monitoring systems, innovative wastewater treatment technologies, and water reuse policies. Additionally, it addresses the protection and development of waterways, lakes, and rivers, as well as sustainable wetland management. 

    This topic focuses on preserving, promoting, and enhancing cultural and natural heritage in a sustainable way. It includes efforts to increase the attractiveness of cultural and natural sites through preservation, valorisation, and the development of heritage objects, services, and products. Cultural heritage management, arts, and culture play a key role, including maritime heritage routes, access to cultural sites, and cultural services like festivals, concerts, and art workshops. 

    Tourism development is also central, with actions aimed at promoting natural assets, protecting and developing natural heritage, and increasing touristic appeal through the better use of cultural, natural, and historical heritage. It also covers the improvement of tourist services and products, the creation of ecotourism models, and the development of sustainable tourism strategies. 

    This topic focuses on the sustainable management, protection, and valorisation of natural resources and areas, such as habitats, geo parks, and protected zones. It also includes preserving and enhancing cultural and natural heritage, landscapes, and protecting marine environments. 

    Circular economy initiatives play a key role, with actions aimed at innovative waste management, ecological treatment techniques, and advanced recycling systems. Projects may focus on improving recycling technologies, organic waste recovery, and establishing repair and re-use networks. Additionally, pollution prevention and control efforts address ecological economy practices, marine litter reduction, and sustainable resource use. 

    This topic covers labour market development and employment, focusing on creating job opportunities, optimizing existing jobs, and addressing academic (un)employment and job mobility. It also includes attracting a skilled workforce and improving working conditions for various groups. 

    Strengthening small and medium-sized enterprises (SMEs) and boosting entrepreneurship are key priorities. This includes enhancing SME capacities, supporting social entrepreneurship, and promoting innovative business models. Activities may focus on creating advisory systems for start-ups, spin-offs, and incubators, fostering business networks, and improving the competitiveness of SMEs through knowledge and technology transfer, digital transformation, and sustainable business practices. 

    This topic focuses on fostering community integration and strengthening a common identity by promoting social cohesion, positive relations, and the development of shared spaces and services. It supports initiatives that enhance intercultural understanding and cooperation between different societal groups. 

    Demographic change and migration address key societal challenges, such as an aging population, active aging, and silver economy strategies. It also includes adapting public services and infrastructure to demographic shifts, tackling social and spatial segregation, and addressing brain drain. Migration-related actions cover policy development, strategic planning, and the integration of migrants to create inclusive and resilient communities. 

    All projects where ICT has a significant role, including tailor-made ICT solutions in different fields, as well as digital innovation hubs, open data, Internet of Things; ICT access and connecting (remote) areas with digital infrastructure and services; services and applications for citizens (e-health, e-government, e-learning, e-inclusion, etc.); services and applications for companies (e-commerce, networking, digital transformation, etc.).

    This is about the mitigation and management of risks and disasters, and the anticipation and response capacity towards the actors regarding specific risks and management of natural disasters, for example, prevention of flood and drought hazards, forest fire, strong weather conditions, etc.. It is also about risk assessment and safety.

    This topic focuses on enhancing education, training, and opportunities for children, youth, and adults. It covers the expansion of educational access, reduction of barriers to education, and improvement of higher education and lifelong learning. It also includes vocational education, common learning programs, and initiatives supporting labour mobility and educational networks. Additionally, it addresses the promotion of media literacy, digital learning tools, and the development of innovative educational approaches to strengthen knowledge, skills, and societal participation. 

    This topic emphasizes the role of culture and media in education and social development. It supports initiatives that foster creativity, cultural awareness, and artistic expression among children and youth. Activities include promoting cross-border cooperation in the audiovisual sector, enhancing digital content creation skills, and boosting the distribution of educational and cultural media products. Furthermore, it encourages the development of media literacy initiatives, helping young audiences critically engage with digital and media content. By connecting education, creativity, and media, this topic strengthens cultural identity and supports inclusive, knowledge-based societies. 

    This topic covers actions aimed at improving energy efficiency and promoting the use of renewable energy sources. It includes energy management, energy-saving methods, and evaluating energy efficiency measures. Projects may focus on the energy rehabilitation and efficiency of buildings and public infrastructure, as well as promoting energy efficiency through cooperation among experienced firms, institutions, and local administrations. 

    In the field of renewable energy, this encompasses the development and expansion of wind, solar, biomass, hydroelectric, geothermal, and other sustainable energy sources. Activities include increasing renewable energy production, enhancing research capacities, and developing innovative technologies for energy storage and management. Projects may also address sustainable regional bioenergy policies, financial instruments for renewable energy investments, and the establishment of cooperative frameworks for advancing renewable energy initiatives. 

    This topic focuses on promoting equal rights and strengthening social inclusion, particularly for marginalized and vulnerable groups. It covers activities enhancing the capacity and participation of children, young people, women, elderly people, and socially excluded groups. Activities can address the creation of inclusive infrastructure, improving access and opportunities for people with disabilities, and fostering social cohesion through innovative care services. It also includes initiatives supporting victims of gender-based violence, promoting human rights, and developing policies and tools for social integration and equal participation in society. 

    This area focuses on improving health and social services, enhancing accessibility and efficiency for diverse groups such as the elderly, children, and people with disabilities. It includes the development of new healthcare models, innovative medical diagnostics and treatments (e.g., dementia, cancer, diabetes), and the management of hospitals and care facilities. Additionally, activities addressing rare diseases, promoting overall wellbeing, and fostering preventive health measures fall under this theme. It also covers sports promotion, encouraging physical activity as a means to improve public health and social inclusion. 

    This area focuses on strengthening justice, safety, and security through cross-border cooperation and institutional capacity-building. It includes initiatives aimed at improving the efficiency and effectiveness of police, fire, and rescue services, enhancing civil protection systems, and rapid response capabilities for emergencies like chemical, biological, radiological, and nuclear incidents. Activities also target the prevention and combatting of organized crime, drug-related crimes, and human trafficking, as well as ensuring secure and efficient border management. Furthermore, it covers initiatives promoting the protection of citizens, community safety, and the development of innovative security services and technologies. 

    This area focuses on the development and improvement of transport and mobility systems, covering all modes of transport, including urban mobility and public transportation. Actions aiming at improving transport connections through traffic and transport planning, rehabilitation and modernisation of infrastructure, better connectivity, and enhanced accessibility. Projects promoting multimodal transport and logistics, optimising intermodal transport chains, offering sustainable and efficient logistics solutions, and developing multimodal mobility strategies. Also, initiatives establishing cooperation among logistic centres and providing access to clean, efficient, and multimodal transport corridors and hubs. 

    Activities focusing on the sustainable development and strategic planning of urban, regional, and rural areas. This includes urban development such as city planning, urban renewal, and strengthening urban-rural links through climate adaptation, sustainable mobility, water efficiency, participatory processes, smart cities, and the regeneration of public urban spaces. Regional planning and development cover the implementation of regional policies and programmes, sustainable land use management plans, integrated regional action plans, spatial planning, and the efficient management of marine protected areas. Rural and peripheral development addresses the challenges of remote and sparsely populated areas by fostering rural community development, enhancing rural economies, improving access to remote regions, and promoting tailored policies for rural sustainability and growth. 

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Call key data

Transaction Costs Support for social finance intermediaries

Funding Program

European Social Fund+

Call number

ESF-2026-AG-TCS

deadlines

Opening
18.06.2026

Deadline
23.09.2026 17:00

Funding rate

80%

Call budget

€ 4,700,000.00

Estimated EU contribution per project

between € 400,000.00 and € 750,000.00

Link to the call

Link to the submission

Call content

short description

The general objective of the call is to further develop the social enterprise finance market by supporting the social finance intermediaries to provide the needed capital to social enterprises and mission-driven enterprises.

Call objectives

The call builds upon previous similar calls and aims above all to support social finance intermediaries who undertake long-term risk capital investments in social enterprises and mission-driven enterprises. Therefore, the key objective of the present call of proposals is to catalyse risk capital investments below EUR 1 000 000 that otherwise would not happen in the area of social enterprise finance. The call aims to support the transaction costs for these low value investment tickets and thus to help to overcome the identified market failure / mismatch in the social investment market.

The present call also encourages the European (trans-national) and innovative dimension of social finance schemes and support towards emerging social finance markets, e.g. via cross-border investments and cooperation, dissemination of good practices, etc.

Under this call for proposals, the transaction costs support scheme will take the form of a grant, and it can be combined with financial instruments as means to address the mismatch of needed and sustainable ticket sizes.

By transaction costs, this call for proposals understands the different costs linked to these investments, such as due diligence related costs, legal advice fees, travel costs, business development support costs, support towards establishing an impact measurement and management plan or system, etc.

The action grants are aimed at financial intermediaries that undertake long-term risk capital investments in ticket sizes of less than EUR 1 000 000 in social enterprises and mission-driven enterprises in EU Member States and ESF+ Associated Countries.

The long-term capital investment can take the form of:

  • equity, understood as the provision of capital to a firm, invested directly or indirectly in return for total or partial ownership of that firm and where the equity investor may assume some management control of the firm and may share the firm’s profits.
  • quasi-equity, understood as a type of financing that ranks between equity and debt, having a higher risk than senior debt and a lower risk than common equity. Quasi-equity investments can be structured as debt, typically unsecured and subordinated and in some cases convertible into equity, or as preferred equity.
  • or hybrid financing, understood as any flexible form of repayable finance combining the characteristics/features of at least two of the three financing instruments: grant, debt, and equity.

The action grants should serve to cover part of the transaction costs for these small investment tickets and thus help overcome a market failure in the social enterprise finance market.

The long-term risk capital investment can reach per investee at maximum EUR 1 000 000 over a period of 18 months.

This means that if a second investment in the same social enterprise or mission-driven enterprise takes place within less than 18 months from the first investment and this raises the cumulative amount invested above the limit of EUR 1 000 000, the costs of the activities related to the first investment become ineligible for grant support, and any related payments already made by the Commission will be subject to recovery.

In relation to the investees, i.e. the social enterprises or mission-driven enterprises that the grant beneficiaries will invest on, the following conditions apply:

The selected investees must be:

  1. social enterprises, as defined in the Article 2(1.13) of ESF+ Regulation, which means an undertaking, regardless of its legal form, including social economy enterprises, or a natural person which:
    1. in accordance with its articles of association, statutes or with any other legal document that may result in liability under the rules of the Member State where a social enterprise is located, has the achievement of measurable, positive social impacts, which may include environmental impacts, as its primary social objective rather than the generation of profit for other purposes, and which provides services or goods that generate a social return or employs methods of production of goods or services that embody social objectives.
    2. uses its profits first and foremost to achieve its primary social objective, and has predefined procedures and rules that ensure that the distribution of profits does not undermine the primary social objective.
    3. is managed in an entrepreneurial, participatory, accountable and transparent manner, in particular by involving workers, customers and stakeholders on whom its business activities have an impact.
  2. or mission-driven enterprises, which defining feature is structural integration of positive contribution into value creation, not merely compliance, operational efficiency, or net-zero internal performance; therefore, regardless their legal forms, mission-driven enterprises are characterised by the following features:
    1. they are commercially operating legal entities that intentionally pursue one or more specific social and/or environmental objectives alongside economic performance and structurally integrate those objectives into their business model and governance.
    2. their business models are designed so that scaling commercial activity is expected to scale intended positive impacts.
    3. they are fundamentally structured to deliver significant positive impacts through core activities while identifying, preventing, and mitigating adverse impacts in line with EU Corporate Social Responsibility (CSR) and Responsible Business Conduct (RBC) principles.
    4. they embed stakeholder-informed governance and maintain credible, proportionate processes to measure, manage, and report their contribution to those objectives.

As an indication, the overall support request for the transaction costs should not exceed 10% of the total expected investment portfolio in social enterprises and mission-driven enterprises. For applicants with average investment tickets of less than EUR 300 000, the support request should not exceed 15% of the total expected investment portfolio.

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Expected effects and impacts

Actions funded under this Call are expected to contribute to increase the number of risk-capital investments of below EUR 1 000 000 in social enterprises and mission driven enterprises.

In the longer term, the Call is expected to contribute to overcome the market failure in the social investment market and to address the mismatch between needed and sustainable ticket sizes.

In line with point 2.5 of the application template “Project management, quality assurance and monitoring and evaluation strategy”, the application shall include a description of evaluation methods and indicators (quantitative and/or qualitative) to monitor and verify the achievement of the main expected results. These indicators should be realistic, measurable and relevant. Their level of achievement or deviations thereof must be detailed and justified in the final reporting.

Expected results

This call will support proposals whose activities contribute to the implementation of the above-mentioned objectives and priorities.

The types of activities which can be funded under this call for proposals include, but are not limited to:

  • The activities related to the preparation, conclusion and follow-up of long-term risk capital investments into social enterprises and mission-driven enterprises which are considered eligible to be funded under this call for proposals. These activities can include a mix of activities such as:
    • travelling to meet (potential) investees
    • screening and processing investment applications
    • preparing legal documents, potentially with the help of legal adviser
    • carrying out due diligence, including assessing (potential) impact of the investment
    • providing investment readiness, scaling readiness or business restructuring support
    • providing support to investees with the development of their impact measurement and management plan or system
    • bringing in co-investors
    • managing the investments and social impact.
  • Activities related to the overall EU value-added and the innovative dimension of the financing schemes which can include activities such as:
    • developing or testing an innovative solution or tool which could help to lower the transaction costs in a more structural and sustainable way
    • cross-border experience sharing and support to peers in emerging social enterprise finance markets
    • activities encouraging investments across the border in emerging social enterprise finance markets
    • dissemination of good practices activities and/or support to other potential funders and/or national and regional authorities to set up equivalent schemes.

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Eligibility Criteria

Regions / countries for funding

EU Member States, Overseas Countries and Territories (OCT)
Moldova (Moldova), Bosnia and Herzegovina (Bosna i Hercegovina / Босна и Херцеговина), Iceland (Ísland), Kosovo (Kosova/Kosovë / Косово), Liechtenstein, Montenegro (Црна Гора), Serbia (Srbija/Сpбија), Ukraine (Україна)

eligible entities

Other, Private institution, incl. private company (private for profit)

Mandatory partnership

No

Project Partnership

In order to be eligible, the applicants (beneficiaries and affiliated entities) must:

  • be legal entities (public or private bodies)
  • be established in one of the eligible countries, i.e.:
    • EU Member States (including overseas countries and territories (OCTs))
    • non-EU countries: listed EEA countries and countries associated to the ESF+ (list of participating countries), or
    • countries which are in ongoing negotiations for an association agreement and where the agreement enters into force before grant signature.

The single applicant or the lead applicant in case of a consortium must be:

  • either the established legal entity of an investment fund, or a Fund-of-Funds, or a special purpose vehicle, in any form, or a (co-)investment scheme of any form.
  • or the organisation managing a ready to be established investment fund, Fund-of-Funds, the special purpose vehicle, or the (co-) investment scheme, of any form. In this case and for the avoidance of doubt, the managing organisation must be already established and registered as legal entity at the time of the submission of the application.

other eligibility criteria

Specific cases

Exceptional funding — Entities from other countries (not listed above) are exceptionally eligible, if the granting authority considers their participation essential for the implementation of the action.

Natural persons — Natural persons are NOT eligible (with the exception of self-employed persons, i.e. sole traders, where the company does not have legal personality separate from that of the natural person).

International organisations — International organisations are NOT eligible.

Entities without legal personality — Entities which do not have legal personality under their national law may exceptionally participate, provided that their representatives have the capacity to undertake legal obligations on their behalf, and offer guarantees for the protection of the EU financial interests equivalent to that offered by legal persons.

EU bodies — EU bodies (with the exception of the European Commission Joint Research Centre) can NOT be part of the consortium.

Associations and interest groupings — Entities composed of members may participate as ‘sole beneficiaries’ or ‘beneficiaries without legal personality’.

Social partner organisations — These include notably the European social partner organisations that are consulted in accordance with Article 154 TFEU (for the list, see List of consulted organisations) as well as other European-level social partner organisations that are not included in this list, but who are for example involved in the preparation and launch of European social dialogue at sector level. Social partner organisations without legal personality are eligible provided that the conditions for entities without legal personality (see above) are met.

Countries currently negotiating association agreements — Beneficiaries from countries with ongoing negotiations for participation in the programme (see list of participating countries above) may participate in the call and can sign grants if the negotiations are concluded before grant signature and if the association covers the call (i.e. is retroactive and covers both the part of the programme and the year when the call was launched).

EU restrictive measures — Special rules apply for entities subject to EU restrictive measures under Article 29 of the Treaty on the European Union (TEU) and Article 215 of the Treaty on the Functioning of the EU (TFEU). Such entities are not eligible to participate in any capacity, including as beneficiaries, affiliated entities, associated partners, subcontractors or recipients of financial support to third parties (if any).

EU conditionality measures — Special rules apply for entities subject to measures adopted on the basis of EU Regulation 2020/2092. Such entities are not eligible to participate in any funded role (beneficiaries, affiliated entities, subcontractors, recipients of financial support to third parties, etc). Currently no such measures are in place.

Additional information

Topics

Competitiveness of Enterprises, Employment/Labour Market, SME & entrepreneurship

Relevance for EU Macro-Region

EUSAIR - EU Strategy for the Adriatic and Ionian Region, EUSALP - EU Strategy for the Alpine Space, EUSBSR - EU Strategy for the Baltic Sea Region, EUSDR - EU Strategy for the Danube Region

UN Sustainable Development Goals (UN-SDGs)

project duration

between 36 and 48 months

Additional Information

Proposals must be submitted electronically via the Funding & Tenders Portal Electronic Submission System (accessible via the Topic page in the Calls for proposals section). Paper submissions are NOT possible.

Proposals (including annexes and supporting documents) must be submitted using the forms provided inside the Submission System (NOT the documents available on the Topic page — they are only for information).

Proposals must be complete and contain all the requested information and all required annexes and supporting documents:

  • Application Form Part A — contains administrative information about the participants (future coordinator, beneficiaries and affiliated entities) and the summarised budget for the project (to be filled in directly online)
  • Application Form Part B — contains the technical description of the project (template to be downloaded from the Portal Submission System, completed, assembled and re-uploaded)
  • mandatory annexes and supporting documents (templates to be downloaded from the Portal Submission System, completed, assembled and re-uploaded):
    • CVs (standard) of core project team
    • activity reports of last year
    • list of previous projects (key projects for the last 3 years) (template available in Part B).

Proposals are limited to maximum 40 pages (Part B). Shorter proposals are welcome.


Financial support to third parties is not allowed.