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1. The total contribution from the ERDF or, where applicable, an external financing instrument of the Union, to small project funds within an Interreg programme shall not exceed 20 % of the total allocation of the Interreg programme. The final recipients within a small project fund shall receive support from the ERDF or, where applicable, the external financing instruments of the Union through the beneficiary and implement the small projects within that small project fund (‘small project’).

2. The small project fund constitutes an operation within the meaning of point 4 of Article 2 of Regulation (EU) 2021/1060 which shall be managed by a beneficiary, taking into account its tasks and remuneration. The beneficiary shall be a cross-border legal body or an EGTC or a body which shall have legal personality. The beneficiary shall select the small projects which are implemented by the final recipients within the meaning of point (18) of Article 2 of Regulation (EU) 2021/1060. Where the beneficiary is not a cross-border legal body or an EGTC, a body involving representatives from at least two participating countries, of which at least one is a Member State, shall select the joint small projects.

3. The document setting out the conditions for support to a small project fund shall, in addition to the elements laid down in Article 22(6), set out the elements necessary to ensure that the beneficiary:

(a) establishes a non-discriminatory and transparent selection procedure;

(b) applies objective criteria for the selection of small projects, which avoid conflicts of interest;

(c) assesses applications for support;

(d) selects projects and fixes the amount of support for each small project;

(e) is accountable for the implementation of the operation and keeps at its level all supporting documents required for the audit trail in accordance with Annex XIII to Regulation (EU) 2021/1060; and (f) makes available to the public the list of the final recipients which benefit from the operation. The beneficiary shall ensure that the final recipients comply with the requirements set out in Article 36.

4. The selection of small projects shall not constitute a delegation of tasks from the managing authority to an intermediate body as referred to in Article 71(3) of Regulation (EU) 2021/1060.

5. Staff and other costs corresponding to the cost categories in Articles 39 to 43 generated at the level of the beneficiary for the management of the small project fund or funds shall not exceed 20 % of the total eligible cost of the small project fund or funds, respectively.

6. Where the public contribution to a small project does not exceed EUR 100 000, the contribution from the ERDF or, where applicable, an external financing instrument of the Union shall take the form of unit costs or lump sums or flat rate financing, except for projects for which the support constitutes State aid. Where the total costs of each project do not exceed EUR 100 000, the amount of support for one or more small projects may be set out on the basis of a draft budget which is established on a case-by-case basis and agreed ex ante by the beneficiary managing the small project fund. Where flat-rate financing is used, the categories of costs to which the flat rate is applied may be reimbursed in accordance with point (a) of Article 53(1) of Regulation (EU) 2021/1060.