Dual-Use Funding for SMEs: Who Can Apply and How Much

A dual-use product works in both civilian and defence use. It can be a device, software, a material or a method, for example a sensor, a situational awareness system or an energy solution. Many SMEs already have such a product, even if they have never sold to defence. There is plenty of funding available, but it is scattered: some comes from the regional centres (elinvoimakeskus) and Business Finland, some from the EU and NATO.

Who can apply?

An SME whose product or technology also suits defence or security. No defence background is needed. NATO DIANA specifically looks for companies with little of it.
A subcontractor in the value chain of dual-use or defence products. ReArm funding is also open to subcontractors.
A company alone or together with others. ReArm, Business Finland funding and the EIC Accelerator are applied for alone. An EDF project needs a European consortium.

Each funder’s own conditions, such as company size, location, ownership and technology maturity, are explained on the page for that funding.

How much funding is available?

ReArm funding (elinvoimakeskus): up to 50% of costs for development, as de minimis aid of at most €300,000 over three years. 10–40% for investments, depending on company size and region. The smallest grant is €10,000.
Business Finland: grants of up to 50% of an SME’s costs for research and loans for development work. The Defense and Digital Resilience programme (2024–2028) has a funding target of €120 million.
EDF, the European Defence Fund: up to 100% of costs in research projects and 20–100% in development projects, depending on the activity. Business Finland can top up the funding so that the public share rises to at most 90%.
NATO DIANA: €100,000 for each company selected for the accelerator and up to €300,000 more in the follow-on phase. DIANA takes no equity in return.
EIC Accelerator: for breakthrough technology, a grant of under €2.5 million and an investment of €1–10 million.

Funding can be combined. National funding moves product development forward, and EU funding brings scale. The same cost cannot, however, be funded from two sources.

When to apply?

ReArm: continuous calls by major region, until the region’s call period or budget ends. Call periods vary by region.
Business Finland: at any time.
EDF: once a year, based on the Commission’s work programme.
NATO DIANA: a challenge call once a year.
EIC Accelerator: a short application can be submitted at any time, a full application on six cut-off dates a year.

ReArm and Business Finland applications are submitted before the project starts.

What should you take into account?

Exports of dual-use items are controlled. If the product is on the EU or Finnish control list, exporting it outside the EU requires a licence, which in Finland is granted by the Ministry for Foreign Affairs. Check the product’s classification early, because it determines which countries you can sell to without a licence.

What we do

We find out which funding suits your project and build a schedule in which the different sources support each other. We prepare the applications with their attachments and handle the contact with the funders. In an EDF project this also covers applying for national support from the Ministry of Defence. Bureaucracy is our problem.

Read more about the funding options on the pages ReArm funding, EDF – European Defence Fund, NATO DIANA, Horizon Europe and the EIC and Business Finland. For background, see the article Dual-use funding: the defence industry opens a new growth direction for SMEs.

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Dual-use funding

Who can apply?

How much funding is available?

When to apply?

What should you take into account?

What we do

Sources

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