According to the EU Financial Regulation, grants are financial contributions from the EU which aim at achieving a polical objective of the Union (e.g. research and innovation funding).
The allocation of grants is based on a Grant Decision or a Grant Agreement which allow for reimbursement of a certain percentage of costs or for payments in the form of lump sums and flat rates. Most funding in Horizon 2020 is provided through Grant Agreements. The award cirtiera depend on the provisions in place for the respective project types.