To bridge this gap, an advance payment (grant advance) is available, which is explicitly allowed under the call.
How much advance can be requested?
For activities financed on a reimbursement basis, an advance payment may be requested, up to 50% of the approved grant amount.
Exception: if the beneficiary is a company in which the state holds a direct or indirect majority ownership, an advance of up to 100% may be requested (this is a special case).
When is the advance paid?
According to the general guidance, an advance can be disbursed if several basic conditions are met:
- the call and the grant agreement allow the beneficiary to request an advance,
- a valid grant agreement is in place,
- if the beneficiary is required to provide security, it is evidenced no later than upon submission of the advance request,
- the advance request and its supporting documentation are complete and adequate in substance,
- the beneficiary has not yet submitted the final payment claim.
If no grounds for suspension arise during the review, the managing authority pays the advance within 15 days of receipt.
When must the advance be repaid?
DIMOP Plus rules highlight two typical repayment scenarios:
1) Misuse of funds: full repayment
The full amount of the advance must be repaid if an interim payment claim or another circumstance proves that the grant has been used not for its intended purpose.
Use is considered proper if the interim payment claim meets the control requirements and the managing authority approves the supporting documents in whole or in part.
2) The “60% within 12 months” rule: partial repayment (which may still be substantial)
If, within 12 months of the disbursement of the advance (or its first instalment), no interim payment claim is submitted with eligible grant-supported expenditure amounting to at least 60% of the advance, a repayment obligation arises.
Own contribution: unavoidable and relevant already at the advance stage
Non-eligible costs (i.e., costs not reimbursable by the EU) must be covered from own contribution, so this is not a “later issue” but a critical checkpoint already when requesting the advance. When submitting the grant application, a declaration must be made on the availability of own contribution, and its availability must be evidenced no later than when submitting the advance request or the first payment claim.
In practice, own contribution is most commonly evidenced by a bank account balance (cash in bank), but acceptable forms may also include, for example, a credit facility/loan, a shareholder loan, or a capital increase related to the project. The key is that the source of own contribution must be transparently supportable and genuinely available in line with the project schedule. This makes the advance request and subsequent payment claims more predictable and helps avoid financing delays due to administrative issues.
Practical tips to reduce risks when requesting an advance
- Submit the first interim payment claim in time. The 12-month deadline can pass quickly, and under the 60% rule a significant repayment obligation may arise if sufficient eligible expenditure is not reported in time.
- Organise documentation from the start of the project. Spending the advance is not enough on its own: to have costs accepted, eligibility must be supported with invoices and other supporting documents.
- Prepare the evidence of own contribution in advance. Own contribution must be evidenced no later than when submitting the advance request or the first payment claim, so it is advisable to ensure the relevant documents (typically a bank statement/balance) are available early in the process.
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