Before granting funding, we may have to check your financial capacity.
When is the financial capacity verified?
For H2020, we verify the financial capacity of project coordinators when the requested EU funding for the action is equal or superior to €500 000 unless the coordinator is:
- a public body
- a higher or secondary education establishment
- an international organisation
- a legal entity whose participation is guaranteed by a Member State or an associated country, in accordance with the H2020 Annotated Model Grant Agreement
- a private individual in receipt of a scholarship
Regardless your role in the project, we may also verify your financial capacity if there are reasonable doubts on it, on the basis of available information.
Financial capacity self-check
You can check your financial capacity yourself by using the H2020 Financial self-check tool.
- The results of this simulation provide only a non-binding indication. If a formal financial viability check by the Commission is required for a participation in a project, either the LEAR of your organisation will be invited to submit data via the Portal or the Commission will inform you about the exact steps to follow.
How is the financial capacity assessed?
We will assess your financial capacity by checking that your organisation:
- has sufficient liquidity (it is capable to cover the short-term commitments)
- is financially autonomous (it is capable to cover the debt costs)
- is solvent (it is capable to cover its medium and long-term commitments)
- is profitable (it is generating profits, or at least has self-financing capacity). This condition does not apply to private individuals.
The results of your financial capacity assessment will be taken into account when evaluating your ability to implement the project (and to take the coordinator's role if it is the case). If these results are weak or insufficient, measures may be imposed, as indicated in the section on Grant Preparation.
If your financial capacity has to be assessed:
- You will be informed in due time via your account in the Participant Register.
- You will have to provide - if not already available in the Participant Register - your financial information and relevant supporting documents covering the last two closed financial years. These documents are:
- Profit and loss statement, balance sheet and accompanying notes
- Audit report if your requested EC contribution is superior to €750 000
- We will carry out a financial capacity assessment on the last two closed financial years.