The top 8 questions about start-up grants

The start-up grant is one of the most popular forms of funding for founders. However, for those who are new to the topic of “starting their own business” and who are wondering whether they can apply for the start-up grant, they probably have many questions for this promotion such. B.: What requirements do I have to meet to apply? How long can I receive the start-up grant? And does the grant have to be paid back? We have answered the eight most important questions.

1. What are the requirements for applying for a start-up grant?

ALG-1 recipients who have at least 150 days remaining entitlement to unemployment benefit and have not yet reached the age of 65 can apply for the start-up subsidy. In addition, a weekly working time of at least 15 hours is a prerequisite for the granting of a start-up grant. In addition, the expected profit should be sufficient to secure your own existence. In order to ensure the long-term success of the business idea, the viability of the project must be proven by an expert opinion (viability certificate) when applying for a start-up grant. service tip: The expert network Germany offers founders to create such a certificate within 48 hours.

Furthermore, founders must prove to the employment agency that they have the necessary professional and personal requirements to implement the business idea. If this knowledge is missing, participation in an event to determine suitability or in a start-up seminar may be required.

It should also be noted that founders are not entitled to the start-up grant, as this support is a discretionary benefit. The clerk at the Employment Agency first checks whether the founder is in a employment relationship can be placed before the grant for the start-up grant is issued. Entrepreneurs should be well prepared so that they can be convinced of the business model. In particular, a professional business plan including a financial plan must be drawn up for this purpose.

2. How much is the start-up grant?

The start-up grant is two phases divided up. In the first phase, support is granted in the amount of the unemployment benefit last drawn plus 300 euros for six months. In the second phase, the start-up subsidy can be granted for a further nine months in the amount of 300 euros per month if intensive business activity and full-time entrepreneurial activity can be demonstrated. This can e.g. B. be proven by an expert opinion.

3. Does the start-up grant have to be repaid?

No, the start-up subsidy is a state benefit from the employment agency, which in principle not refunded must become. However, the start-up subsidy can be reclaimed by the employment agency if, while receiving the subsidy, livelihood and social security are already secured by a full-time job and the employment agency finds out about this.

4. Can I earn money on top of the start-up subsidy?

If you want to become self-employed, you have to reckon with the fact that it may take several months for the company to be successful. On average, a company even needs three to five years before it has established itself on the market. Bridging the first few years is therefore a challenge for founders. Part-time work is therefore often necessary to make ends meet. As a rule, anyone who receives a start-up subsidy must be self-employed full-time – at least 15 hours per week must be invested in this. However, it is possible in the start-up phase of self-employment to earn money with a mini-job in order to secure their own livelihood. It depends on the time that is spent on the secondary activity (sideline). It is important that this does not exceed 15 hours per week.

5. What about the social security obligation?

Recipients of start-up grants are not socially insured through the Employment Agency, unlike before when they received ALG 1. You have to independent take care of their insurance coverage. In the statutory pension insurance, the self-employed are usually not subject to compulsory insurance. With the start-up subsidy, 300 euros per month are paid out to ensure social security. This amount can be used to contribute to statutory or private health insurance. If you already have statutory health insurance, you can continue to do so as a voluntary member. More information on this: Insurance.

6. Is it also possible to start a business in a team?

Founders who apply for the start-up subsidy can also become self-employed together with others within the framework of a civil law partnership (GbR) or another legal form. It is important for the start-up grant payment that founders actually pay the Entrepreneurship own. This applies to two equal partners with a share of 50% each. If the proportion is less than 50%, e.g. B. three or more founders with equal rights, a corresponding argument is necessary, which proves the decisive influence on the decisions of the company.

7. Despite termination of the job: Can I get the start-up grant?

Anyone who quits their job or terminates an employment contract through a termination agreement usually does not receive unemployment benefits immediately after the end of the employment relationship, since a so-called blocking time of up to three months can be imposed. During this lockdown period, it is usually not possible to apply for the start-up grant. However, in exceptional cases, no blocking period is imposed or that the application for a start-up subsidy is even approved within the blocking period. However, this question must be clarified individually with the responsible clerk.

8. What happens if I quit self-employment for a new full-time job?

Founders who do not want to continue their company foundation and receive an offer for a full-time position during the funding period can accept this. In this case, the start-up subsidy will be so long paid onuntil the new employment begins, already paid start-up grant amounts do not have to be repaid to the employment agency.

Tip: Business start-up advice can help when applying for a start-up subsidy, in that a certified consultant supports founders with the application and beyond the start-up process. The consultant knows which documents are required and helps to prepare and compile them. Depending on the circumstances, a consultation can also be funded (service: funding check).

by the way: ALG 2 recipients who are planning to start a business can also be supported by the so-called entry fee.