1. 1 Opportunities for SMEs Favourable conditions: lMedium/long term vision: 7-year programme lImproved conditions in FP7 èStrong support : up to 75% of R&D costs and up to 100% management & training èBetter intellectual rights protection: IPR rules adapted to SMEs needs  Administrative simplification: reduced need for financial checks and bank guarantees thanks to the garantee fund, but …

2. 2 As the Commission is awarding public money, it has a duty to assess participants « capacity » : Operational capacity check, namely capacity to complete technical, scientific, technological, managerial, administrative tasks …  performed during evaluations and negotiation. ===================================== Financial capacity check  performed during negotiation (together with the verification of “SME” status). Contribution up to € 500 000 is covered by the guarantee fund. For higher EC contribution, additional checks and measures are required. Capacity check (1)

3. 3 As the Commission is awarding public money, it has a duty to assess participants « capacity » : Particular attention is placed on coordinators’ financial capacity, as they are responsible for the project entire budget over their entire involvment timeline. Therefore, we advise a preliminary self-check before finalising the role of SMEs in a proposal  SMEs may perform a financial viability check through a “check- tool”. Read the financial capacity rules (see at: http://cordis.europa.eu/fp7/find-doc_en.html). Sometimes two different legal entities may assume scientific coordination and managerial coordination role… Capacity check (2)

4. 4 04/06/2016 ATTENTION In all cases during negotiation the Commission will perform financial capacity check, and if an organization is determined to be financially weak, this organization: May participate but not coordinate. May participate, but with closer monitoring, audits, technical reviews, etc… And occasionally may not participate. (Not legally binding) Capacity check (3)