Applying for a start-up grant

If you receive unemployment benefit and would like to start a business, you can receive financial support for this under certain conditions.

The start-up grant is intended to support you in securing your livelihood and social security after setting up your own business. You can only receive a start-up grant if you are self-employed as your main occupation.

Before you apply for the start-up grant, you must be registered as unemployed and receive unemployment benefit. A direct transition from employment to subsidized self-employment is not possible.

If you are not entitled to unemployment benefit for at least 150 days before you start your self-employed activity, you cannot receive a start-up grant.

Exception: People with disabilities can receive a start-up grant even if they are entitled to less than 150 days or are not entitled to unemployment benefit.

The start-up grant can be paid in 2 phases:

• Phase 1: 6 months start-up subsidy in the amount of the last unemployment benefit received to cover living expenses plus a monthly lump sum of EUR 300.00 for social security
• Phase 2: 9 months subsidy in the amount of EUR 300.00 per month

It must be decided on an individual basis whether funding is possible. There is no legal entitlement to the start-up grant.

If you have fulfilled the requirements for the standard old-age pension, you cannot (no longer) be supported. The start-up grant is not subject to income tax.

You can apply for the subsidy in addition to other business start-up grants.

You can find the office of the Federal Employment Agency responsible for you via the office finder.

You can find the office of the Federal Employment Agency responsible for you via the office finder.

• Proof of your knowledge and skills for exercising the self-employed activity, for example
  • Proof of qualifications,
  • professional experience or
  • Participation in measures to prepare for setting up your own business.

If you wish to exercise a trade or self-employed activity that requires a permit, you will also need

• a permit to exercise the respective trade or self-employed activity
• for trades or trades-related professions:
• confirmation of entry in the register of craftsmen at the Chamber of Crafts

You must also submit a statement from an expert body on the viability of the business start-up. For this you need

• a description of the business start-up project to explain the business idea (business plan),
• Your curriculum vitae, including proof of qualifications,
• a capital requirement and financing plan,
• a turnover and profitability forecast

• You receive unemployment benefit from an employment agency.
• You still have a remaining entitlement to unemployment benefit of at least 150 days when you take up self-employment.
• You can prove that you have the knowledge and skills to carry out the self-employed activity.
• You can provide a positive opinion from an expert body on the viability of the business start-up. Expert bodies are, for example, the Chamber of Industry and Commerce, the Chamber of Crafts or banks.
• You have not yet reached the required age for drawing the standard old-age pension.

• Contradiction

You must apply for the start-up grant at the Federal Employment Agency:

• First make an appointment for a consultation at the Federal Employment Agency. You can do this by calling the employee hotline or online on the Federal Employment Agency's website.
• Your advisor will discuss with you what financial assistance is available for business start-ups and what requirements you need to meet.
• An expert body must then give your start-up project a positive assessment. You are free to choose the expert body. Expert bodies for the preparation of expert opinions are in particular
  • Chambers of Industry and Commerce,
  • Chambers of Crafts,
  • guilds,
  • professional chambers,
  • professional associations or
  • credit institutions.
• You can apply for the start-up grant online.
• The employment agency will also check whether you meet the professional requirements for carrying out the intended self-employed activity.
• The employment agency will initially approve the start-up grant for 6 months if the expert body has certified the viability of your business idea and the other requirements are met.
• You will find the approval notice in your profile in the "Notice filing" section, provided you have agreed to online delivery.
  • If you have not agreed to online delivery, you will receive the approval notice by post.
• You will receive the start-up grant for 6 months.
• Following phase 1, you can apply for the start-up grant for phase 2. You will find all the necessary information in your profile in good time.
• In order to receive the reduced grant for a further 9 months, you must prove that you have actually carried out the self-employed activity and that you can be expected to be able to support yourself after the end of the grant.

Application deadline: You must submit the application before you become self-employed.

There are generally no costs. However, depending on your choice of expert, you may incur costs for the certification of the viability of your business start-up. You must bear these costs yourself.

Before taking the leap into self-employment, check your insurance obligations with your health insurance and pension fund, and find out whether you will still be covered.