Start-up Allowance

Start-up Allowance is a nationwide grant program offered by the Federal Employment Agency that supports individuals in need of assistance under SGB II during their transition into full-time self-employment or dependent employment. Funding is provided for a period of up to 24 months with a maximum amount of 5,000 euros, which is individually calculated based on the duration of unemployment and the size of the beneficiary’s household. The goal is to sustainably end dependency on social benefits through this financial start-up aid. Eligible to apply are all benefit recipients under SGB II who are commencing full-time employment and can demonstrate a lasting prospect of economic independence.

The program offers continuously open application deadlines: funding applications can be submitted at any time before starting the new activity to the responsible basic security agencies. In addition to the start-up allowance, supplementary loans or grants for necessary capital investments as well as support services from third parties (e.g., consulting and qualification measures) can be utilized concurrently. Through the combination of financial security and professional support, potential founders and career starters are enabled to develop a viable business model or take up employment that permanently frees them from reliance on transfer payments. The program targets those who are willing to establish a stable livelihood through entrepreneurial commitment or as employees.