Inclusion of Self-Employed Individuals; Applying for Benefits

You are eligible for this benefit if you

• receive the Citizen’s Income or are eligible for it
• wish to become self-employed (start a business),
• wish to expand a previously minor self-employed activity into your primary occupation, or
• are already self-employed as your primary occupation.

The goal is for you to be able to support yourself permanently within a reasonable period of time and no longer need the basic income benefit.

Financial Support for the Purchase of Equipment

If you want to purchase equipment you need for your work, you can receive a loan or a grant from your Jobcenter. Examples of such equipment include:

• computers,
• software,
• a phone,
• office furniture,
• marketing initiatives, such as creating a website,
• Vehicles, machinery, equipment, tools
• Security deposit for commercial space
• Initial inventory and operational replenishment of your stock of materials, goods, or spare parts.

No ongoing operating costs are covered, such as

• wages and personnel costs,
• rent,
• phone bills, or
• maintenance costs.

Financial support for the purchase of tangible assets is usually provided in the form of a loan. In certain cases, grants of up to 5,000 EUR are possible, and loans may exceed this amount.  A combination of both is possible. Depending on the intended use, loans and grants are disbursed in monthly installments or as a lump sum. You must repay the loan later, but not the grant.

You must apply for funding from the Job Center before making the purchase. It is not possible to receive a loan or grant for assets that have already been purchased.

Free Counseling and Training for the Self-Employed

If you are already self-employed full-time, you may also be eligible for support through

• consultations that help you maintain or realign your self-employment. However, tax and legal consultations are not eligible for funding.
• Training programs that provide you with business skills, for example, in the areas of marketing, accounting, business development, or project management.

Both are free of charge for you. Your Jobcenter will commission, for example, your local Chamber of Industry and Commerce or Chamber of Crafts, private educational institutions, innovation centers, technology centers, or business incubators to provide these services.

Your integration specialist will review and decide which of the aforementioned services you are eligible to receive. This also applies to the amount of a loan or grant. This means you have no legal entitlement to them.

To be eligible for these benefits, the following requirements must be met:

• You are receiving basic income
• You want to become self-employed or are already self-employed, which means
  • you work in your own name and on your own account, and
  • you bear the financial risk of your business activities, known as the entrepreneurial risk.
• Self-employment must be your primary occupation, which means
  • you work at least 15 hours per week as a self-employed person and
  • you are able, within a reasonable period of time, to cover all or a significant portion of your living expenses with the income you earn.
• You must be personally qualified to successfully carry out self-employment. To this end, you must demonstrate that you possess the knowledge and skills required for self-employment, for example by providing
  • evidence of your professional and business qualifications,
  • work experience, or
  • participation in programs that prepare you to start your own business.
• Your self-employment must be economically viable, which means
  • your business model must be well-developed and thoroughly thought out so that your business can be successful in the long term
    • The viability of your self-employment must be documented by an expert opinion. Expert bodies may include professional chambers, trade associations, or startup initiatives. Your Job Center will identify the relevant expert body in your region. You will typically be required to submit detailed documentation to that body.
• The assets you wish to purchase must be appropriate and necessary for your work.
• Other sources of funding are not eligible, such as specific federal and state programs, local economic development funding, or microloans.
• The funding must comply with EU state aid law and the de minimis rule.

You must apply for the subsidy before you can receive financial assistance for purchases or take advantage of the counseling services.

• To do so, first make an appointment with your local Jobcenter.
• Your integration specialist will discuss with you whether self-employment could be a realistic strategy for you to integrate into the labor market and end your need for assistance, and what type of funding might be available to you.
• Loans and grants for the purchase of goods:
  • Your integration specialist will provide you with the application form or activate the online application process for you. It is important that you submit the application—online or in writing – for the financial assistance—before you purchase the goods.
  • The Job Center will review your application and the attached documents.
  • The Job Center will assess your personal suitability for the specific self-employment activity and the financial viability of your business. This includes determining whether you will be able to earn a living through self-employment within a reasonable period of time.
  • You will receive written or digital notification from the responsible Job Center indicating whether your application has been approved.
  • Once you receive approval, you may make the purchases.
  • You must then submit documentation proving how you spent the funds 
  • , such as purchase agreements, receipts, or bank statements.
• Counseling and training to develop knowledge and skills:
  • Your Job Center commissions these counseling sessions and training programs from external educational providers. You can contact your Job Center for more details.

There is no deadline. You must submit the application before making the purchases. Deadlines are set by the respective Jobcenter, such as deadlines for submitting documents.

• Required document(s)
  

  To receive financial assistance, you must submit the required documentation. Your integration specialist will inform you which of the following documents are necessary for the financial assistance you have applied for:

  • an expert opinion confirming that your self-employment is economically viable
  • A de minimis declaration in accordance with European Union (EU) state aid law
  • Capital requirements and financing plan
  • Business plan in written form
  • Resume
  • Tax registration, business registration, or registration with the Chamber of Crafts
  • Certificate of participation in a startup seminar
  • Quotes for investments necessary for business operations
  • If applicable, contractual documents such as articles of incorporation or a lease agreement
  • At least 2 rejections from banks to which you have submitted loan applications
  • Other individual documents that the Job Center may request

There are no costs involved.