Last year, the Federal Employment Agency doubled its budget for start-up support from unemployment. In 2019, the subsidy will help to start directly from unemployment and build up a business of its own. But how does the start-up grant in 2019 work?
So you Apply for the Money at the Start-up Grant in 2019
From unemployment to entrepreneurs: The start-up grant can – if used properly – be the necessary start-up aid for a successful life as a founder and entrepreneur. But you should know a lot – and do the right thing.
Entitlement to Start-up Subsidy: Who can Apply for Funding?
Entitled to apply are basically all recipients of unemployment benefit I, possibly also other benefits under SGB III, if they still have a claim to unemployment benefit of at least 150 days, and want to end their employment with the establishment of a company. However, the granting of the start-up subsidy is a discretionary benefit – that is, your agent decides whether you will receive the support.
Here are some important points that are often overlooked:
- As an applicant you have to take ALG I at least one day before you start.
- It is not permissible to found a child until the unemployment benefit has been exhausted; the remaining entitlement of 150 days must be respected.
- Placement priority in the labor market: The employment agency will check in each case, if there is the alternative placement to founding. In other words, if in doubt, he will try to put you in an adequate employment relationship.
- Since the award is at the discretion of the responsible intermediary, one must convince as an applicant above all one thing:. Best with a good business plan and a sound financial concept.
- The start-up grant ends in any case when reaching the age of 65.
- For recurring unemployment, the renewed entitlement to ALG I will be reduced by the number of days for which the start-up grant was received.
How to create a good business plan? Read our article ” In 7 Steps to the Business Plan ” and ” Top 6 Business Plan Tools for Creating Your Personal Business Plan “.
Start-up Grant Requirements 2019: What is Being Funded?
All independent, full-time jobs are funded if they meet the specified conditions. This must be a viable, promising business concept, the applicant must have the necessary technical and personal qualifications for this activity and also have the material prerequisites for an entrepreneurial activity. All these conditions should, if possible, be proven beyond doubt.
Again, here are some points that are often overlooked:
- The activity must be carried out on a full-time basis and the expected profit must be sufficient to secure the existence.
- Professional aptitudes can be proven, personal suitability should also be proven: by taking the initiative, punctuality, own commitment and reliability. Even as a personality you have to convince.
- Convincing are only hard, verifiable “facts” and clear, logical arguments. Big dreams and very big self-esteem alone do not enable self-employment. This should be kept in mind: business plan, liquidity planning, profitability forecast.
Duration and Amount of the Start-up Subsidy: How High is the Funding and How Long will I Receive Money?
The funding is divided into two phases, each with different levels of funding:
- In the first phase of the start-up grant , which lasts 6 months , the full amount of the ALG I benefit will continue to be paid. In addition, there is an amount of EUR 300 for the social security of the applicant.
- This is followed by a reassessment : The Employment Agency re-examines the activities of the applicant during the six-month funding period and the viability of the concept on the basis of the results achieved. The planned goals for the first six months in the business plan should have been achieved as far as possible.
- Thereafter, a second funding period of a total of 9 months may follow, provided that the assessment is successful. Here, however, only the monthly amount of EUR 300 for social security is provided by the employment agency.
Beware of Additional Income for start-up Subsidy
Sure: with low entitlement to unemployment benefit I, there is only a lower start-up subsidy. Since it seems logical that start-ups during the start-up phase of self-employment to supplement the livelihood by a dependent self-employment. However, caution is advised here: support is only possible if self-employment is carried out full-time. The part-time – non-self-employed – activity may not exceed 15 hours per week. On the merit is not important. The part-time may well give off more than the full-time self-employment.
Additional occupations must be specified during the subsidy to the Employment Agency. Be sure to clarify in advance with your employment agency, whether the planned secondary employment is permitted and could not lead to an abort of funding.
Application for Start-up Grant 2019: Which Documents do I Need?
A corresponding request is made available by the responsible agent of the Employment Agency. In addition, all documents must be provided that are as comprehensive as possible
- prove the professional and personal suitability of the founder
- prove the expected success of the business.
Important document 1: The business plan or business plan
The business plan describes the start-up project as well as a comprehensive financial plan and a forecast of sales and profitability , which should last for at least 3 years .
Important document 2: The viability certificate (= the expert opinion)
An appraisal of this business plan by an appropriate specialized body and a certificate of viability (hence also ” expert opinion ” / ” viability certificate “) of the project must be included. On the one hand, competent bodies can be the respective chambers, but also economic development, starter centers, management consultants or incubators.
Important document 3: Proof of qualification
To prove the personal and professional qualification (eg verifiable professional experience, commercial qualification), a visit to a preparatory course or start-up seminar may be necessary. Ask your employment agency what he expects.
The documents for the start-up grant 2019 again at a glance:
- completed application for start-up grant
- Business plan with capital requirement plan and financing plan
- Sales and profitability forecast
- Certificate of sustainability (= expert opinion)
- curriculum vitae
- Proof of registration of self-employment (Trade Licensing Office or Tax Office)
The most important prerequisite for the successful application for a start-up grant, also in 2019: The Factor Conviction
It is important for every applicant to convince both professionally and personally. Great attention should be paid to that. One can convince both by his personal behavior and his serious effort as well as by his expertise and by always verifiable and comprehensible statements.
Book tips on the topic of start-up subsidy & business start-up