Apply for benefits for the integration of the self-employed

Prerequisites

In order to receive the benefits, the following conditions must be met:

• You receive unemployment benefit II (Hartz IV).
• You want to become self-employed or are already self-employed, that means
• They work in their own name and on their own account and
• You bear the economic risk of your activity (entrepreneurial risk).
• Self-employment must be your main job, that means
• You will work independently for at least 15 hours per week
• Within a reasonable period of time, you can cover your livelihood in whole or in part with the income you earn.
• You must be personally suitable to successfully carry out a self-employed activity. For this you have to prove that you have the knowledge and skills you need for self-employment, for example through
• Evidence of your professional and entrepreneurial qualifications,
• professional experience or
• Participation in measures that prepare you for starting a business.
• Your self-employment must be economically viable, that means
• Your business model must be worked out and thought through in such a way that your business start-up can be successful in the long term
• The viability of your self-employment must be documented by an expert opinion. Expert bodies can be chambers, professional associations or start-up initiatives. Your job center will give you the name of the competent authority in your region that is responsible for you. Usually you have to present detailed documents there (see point "Required documents").
• The goods you wish to acquire must be appropriate and necessary for your work.
• Other sources of financing are excluded, for example special federal and state programs, local economic development or microcredit
• The funding must comply with EU state aid law (de minimis rule).

Documents required

In order to receive a grant, you must submit the relevant documents. Your integration specialist will inform you which of the following documents are required for the funding you are applying for:

• Expert opinion confirming that your self-employment is economically viable
• De minimis declaration (EU state aid law)
• Capital Requirements/Financing Plan
• Business plan in text form
• CV
• Tax registration / business registration / registration with the Chamber of Crafts
• Certificate of participation in a start-up seminar
• Offers of operationally necessary investments
• If necessary, contractual documents such as articles of association or rental agreement
• At least 2 rejections from banks where you made credit inquiries
• Other individual documents that the job center may request

Deadlines

There is no deadline. Previous application required / deadlines are set by the respective job center (e.g. deadlines for submitting documents).

Procedure

You must apply for the grant before you can receive financial support for purchases or use the consulting services.

• To do this, first make an appointment with your responsible job center.
• Your integration specialist will discuss with you whether self-employment can be a realistic strategy for you to integrate into the labor market and end your need for help, and what type of support is suitable for you.
• Loans and grants for the purchase of material goods:
• Your integration specialist will give you the application form or activate the online application process for you. It is important that you submit the application - online or in writing - for funding before you purchase the material goods.
• The job center will check your application and the attached documents.
• The job center assesses your personal suitability for the specific self-employed activity and the economic viability of your company. This includes the prognosis as to whether you will be able to earn your living from self-employment within a reasonable period of time.
• You will receive written or digital notification from the responsible job center as to whether your application will be approved.
• After positive feedback, you can make the purchases.
• You must then submit evidence of what you spent the funds on, such as purchase agreements, receipts or bank statements.
• Advice and training to impart knowledge and skills:
• Your job center commissions the advice and training from external training providers. You can ask your job center for more details.

Processing time

Once you have submitted all of your documents, the review and decision and the issuance of the notification usually takes about 4 weeks.

Fees

No

Legal remedies

• contradiction


• Complaint before the social court

Legal basis

Section 16c of the Second Book of the Social Code (SGB II)

https://www.gesetze-im-internet.de/sgb_2/__16c.html

You can get the promotion if you

• receive unemployment benefit II or are entitled to it
• want to become self-employed (start a business),
• want to expand a previously minor self-employment into your main job or
• are already full-time self-employed.

The aim is for you to be able to earn your own living within a reasonable period of time and no longer need unemployment benefit II (Hartz IV).
Financial support for the purchase of material goods If you want to purchase material goods that you need for your work, you can get a loan or a subsidy from your job center. Goods can be, for example:

• Computer,
• Software,
• Phone,
• office furniture,
• Marketing measures (e.g. creation of a homepage)
• Vehicles, machines, systems, tools
• Deposit for commercial premises
• Initial equipment and operationally necessary increase in your material, goods or spare parts warehouse.

There are no ongoing operating costs, such as

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

You usually receive financial support for the purchase of material goods in the form of a loan. In individual cases, grants of up to EUR 5,000 are possible, and loans even more. A combination of both is possible. The loans and grants are paid out in monthly installments or as a total amount, depending on the purpose. You have to repay the loan later, but not the subsidy.
You must apply for funding from the job center before you make the purchase. It is not possible to grant a loan or subsidy for material goods that have already been purchased. Free advice and training for the self-employed If you are already self-employed full-time, you can also be supported by

• Advice to help you maintain or realign your self-employment (however, tax and legal advice is not funded)
• Training courses that provide you with entrepreneurial knowledge, for example in the areas of marketing, accounting, acquisition or project management.

Both are free of charge for you. Your job center will, for example, commission your local chamber of industry and commerce or chamber of crafts, private training providers, innovation, technology or start-up centers. Your integration specialist will check and decide which of the above benefits you can receive. This also applies to the amount of a loan or grant. That means you have no legal right to it.