Financial intermediaries, selected by entrusted entities for the implementation of financial instruments pursuant to Article 139(4) of Regulation (EU, Euratom) No 966/2012 on the basis of open, transparent, proportionate and non-discriminatory procedures, may include private financial institutions as well as governmental and semi-governmental financial institutions, national and regional public banks as well as national and regional investment banks.

Their elements may be combined, with the possible addition of grants (including lump sums), in one or more integrated schemes supporting particular categories of beneficiary or special-purpose projects, such as SMEs and mid-caps with growth potential, or the large-scale demonstration of innovative technologies.

Their implementation will be supported by a set of accompanying measures. These may include technical assistance for financial intermediaries involved in assessing the eligibility of loan applications or the value of knowledge assets; investment-readiness schemes covering incubating, coaching and mentoring SMEs and fostering their interaction with potential investors; measures to raise the awareness of venture capital firms and business angels of the growth potential of innovative SMEs involved in Union funding programmes; schemes to attract private investors to support the growth of innovative SMEs and mid-caps; actions to improve cross-border and multi-country debt and equity financing; schemes for encouraging philanthropic foundations and individuals to support R&I; and schemes to foster corporate venturing and encourage the activities of family offices and business angels.

Bodies such as regional authorities, SMEs associations, chambers of commerce and relevant financial intermediaries may be consulted, as appropriate, in relation to the preparation and implementation of these activities.

Complementarity will be ensured with the facilities of COSME.

SMEs will be supported across Horizon 2020. For this purpose, to participate in Horizon 2020, better conditions for SMEs shall be established. In addition, a dedicated SME instrument is targeted at all types of innovative SMEs showing a strong ambition to develop, grow and internationalise. It will be provided for all types of innovation, including non-technological, social and service innovations, given each activity has a clear European added value. The objective is to help fill the gap in funding for early stage high-risk research and innovation, stimulate breakthrough innovations and increase private-sector commercialisation of research results.

All specific objectives of the priority "Societal challenges" and the specific objective "Leadership in enabling and industrial technologies" shall apply the dedicated SME instrument and allocate an appropriate amount to it, to reach the minimum goal of 20 % of total combined budgets for all specific objectives of the priority "Societal challenges" and the specific objective 'Leadership in enabling and industrial technologies' being devoted to SMEs.

Only SMEs will be allowed to apply for funding and support. They can form collaborations according to their needs, including for subcontracting research and development work. Projects must be of clear interest and potential benefit to SMEs and have a clear European dimension.

The SME instrument will cover all fields of science, technology and innovation in a bottom-up approach within a given societal challenge or enabling technology so as to leave sufficient room for all kinds of promising ideas, notably cross-sector and interdisciplinary projects, to be funded.