How start-ups can still receive the funding

The application for the granting of the entry fee has been submitted. Then you have to wait and hope that the job center will approve it. But then came the bitter disappointment: the application for the long-awaited funding was rejected. Business start-ups don’t have to bury their heads in the sand and throw their plans overboard. Because it is often worth certain measures to take.

The amount of the entry fee and other important facts about the funding

Anyone who would like to become self-employed out of unemployment can receive a subsidy for this. While ALG-1 recipients can apply for the start-up grant, founders who receive ALG-2 (Hartz4) have the option of receiving the entry fee. This help is one state welfarewhich is intended to encourage self-employment by Hartz 4 recipients.

(reading tip: Entry fee and start-up subsidy – What is the difference between the two grants)

Founders initially receive the entry fee for six months. Subsequent applications can then be submitted. In total, the funding with the entry fee is possible for 24 months.

The entry fee is paid in addition to the Hartz 4 benefits. However, the level of support depends on the type of measurement:

  • flat-rate assessment: Subsidy of a maximum of 50% of the standard service
  • Case-by-case assessment: up to 75% of the ALG 2 standard rate

In addition to the entry fee, founders can receive another subsidy – namely the investment subsidy. Because especially at the beginning of the company foundation, a lot of investments have to be made, for example for the procurement of material resources. However, business founders often lack the necessary resources for this necessary financial meansmaking it very difficult or impossible to start a business.

With the investment subsidy, they can initial investments be performed. With this funding, founders receive a one-off payment of EUR 5,000 for the procurement of material resources (e.g. machines, vehicles and materials for starting a business). The entry fee and the investment subsidy do not have to be repaid, because these are intended to help start-ups to implement their business idea and thus end their unemployment and not let them start immediately with debt.

(reading tip: Apply for an entry fee: instructions and tips )

If the application for an entry fee is rejected, file an objection first

Since 2012, it has been up to us whether the application for an entry fee will be approved discretion the responsible clerk at the job center. Before he decides whether a founder of a business will receive the entry fee, he puts the company foundation through its paces – the business plan in particular is examined more closely here. This is because all the important information about founding a company is recorded in it.

If the application for entry fee is rejected, it makes sense to first to keep calm and file an objection as soon as possible. Business founders have four weeks to do this. If this step is unsuccessful, founders can sue before the social court. But before it gets that far, it makes sense to consider other measures first.

Correct business plan and get better chances of receiving entry money

For example, founders should use the period during which the objection is created and carefully examine the enclosed reason for rejection. In this way, business founders can find out why the job center rejected the application for entry allowance. Common here is one incomplete and/or incorrect business plan to blame. If this is the case, the faulty sections in the business plan must be improved or supplemented.

Once the corrections have been made in the business plan, it is time to create the letter of objection. In particular, business founders should address the reasons for the rejection and explain in detail why the business idea should still be funded with the entry fee.

The objection letter should be drafted carefully. Because if entrepreneurs with very good arguments If you can refute the rejection of the application and show your skills, there is the possibility of getting approval for the receipt of the entry fee in a new examination.

However, it is also possible that business founders cannot make sense of the rejection letter, as it does not contain any precise information on the rejection of the application. Founders should not be afraid here ask the clerk in personto find out the reasons for the rejection.

Increase your chances of getting an entry fee with business start-up advice

In order to increase the chances of getting the start-up grant right from the start, a consultant should be consulted in preparation for founding a company. This can be done as part of business start-up advice, e.g. B. help with the creation of a business plan and the start-up on the conversation with the employment agency prepare (Service tip: Coach and consultant search).

The costs of the consultation can be covered in full with an activation and placement voucher (AVGS). This gives start-ups the opportunity to start their own business without the contribution optimally prepare and start a personal contribution.