SME Support in Strategic Technologies for Europe (STEP) and Defence & Security Sectors (Defence)

SME Support in Strategic Technologies for Europe (STEP) and Defence & Security Sectors (Defence)

The pre-publication of the new action “SME Support in Strategic Technologies for Europe (STEP) and Defence & Security Sectors” under the “Competitiveness 2021–2027” Programme has been officially announced.

The action, with a total budget of €80 million, aims to support investment projects by Small and Medium-sized Enterprises (SMEs) focused on strengthening value chains, manufacturing defence-related products, and developing dual-use technologies.

Main Sub-Actions & Funding Rates

The programme is divided into four sub-actions (€20 million each), with a maximum public grant of up to €200,000 under the De Minimis regulation:

  • STEP - Existing Enterprises: Funding rate: 50% Maximum project budget: €400,000 
  • STEP - New & Under-Establishment Enterprises: Funding rate: 67% Maximum project budget: €300,000 
  • Defence - Existing Enterprises: Funding rate: 50% Maximum project budget: €400,000 
  • Defence - New & Under-Establishment Enterprises: Funding rate: 67% Maximum project budget: €300,000

Note: The minimum eligible budget per investment project is set at €50,000, while the maximum implementation period is 18 months.

Eligible Expenses & Criteria

Businesses may receive funding for a wide range of investment needs, provided that the combined costs of equipment and software account for at least 40% of the total project budget.

Main eligible categories include:

  • Mechanical & Laboratory Equipment (including green transition equipment and electric vehicles) 
  • Software & Cloud Services (AI, Cybersecurity, Blockchain, etc.) 
  • Salary costs for newly hired personnel Building Expenses (up to 5% of the total budget) and Indirect Costs (flat rate of 7%) 
  • Certifications (ISO), patents, and participation in trade exhibitions Eligibility Criteria

Existing businesses must meet the following conditions:

At least one (1) completed fiscal year Eligible business activity code (KAD) prior to application At least one Annual Work Unit (AWU) during the previous year

Project proposals will be evaluated on a comparative basis, with a minimum required score of 50 points.

About Entec Consultants

For the timely preparation, proper scoring, and successful submission of your investment proposal under the new STEP & Defence programme, the team at Entec Consultants is at your disposal.

With extensive experience in managing development funding programmes (ESPA, Development Law, Recovery Fund) and specialized expertise in energy, technology, and environmental sectors, Entec Consultants acts as your strategic partner throughout every stage of the process.

For more information and a free pre-assessment of your business, please contact us.