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I've seen multiple open source projects get such government funding. Does anyone know the process that they go through to get such grants?

For this program, look here: http://www.eib.org/efsi/how-does-a-project-get-efsi-financin... There's also a map of funded projects (most not software projects, as far as I can see): http://www.eib.org/efsi/map/index.htm

It's a loan agreement not a grant.