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Applying for Germany's start-up grant — from unemployment benefit to self-employment

If you receive unemployment benefit (Arbeitslosengeld) and end your unemployment by taking up self-employment as your MAIN occupation, you MAY receive a start-up grant (Gründungszuschuss, § 93(1) SGB III) — a discretionary benefit, not an entitlement. Phase 1: for six months, the unemployment benefit you last received plus EUR 300 a month (§ 94(1)). Phase 2: a further nine months at EUR 300, applied for separately and only on proof of business activity (§ 94(2)). Conditions: at least 150 days of unemployment-benefit entitlement left on the day you start, a viability statement from a competent body (fachkundige Stelle) and a showing of your skills (§ 93(2)). And the application comes before the start: employment-promotion benefits are paid only if applied for before the event giving rise to them (§ 324(1) sentence 1).

Up to date for 2026 — verified on September 23, 2026Official procedure, no printed formGuide: about 60 min

This content is part of the path: Starting a business out of unemployment· Step 5 of 6· Next step: German tax registration questionnaire (Fragebogen zur steuerlichen Erfassung)

Deadlines

Application: before taking up self-employment
§ 324(1) sentence 1 SGB III; § 93(2) sentence 1 no. 1 ties the remaining entitlement to the start date. A late application can be admitted only to avoid undue hardship (§ 324(1) sentence 2)
Remaining entitlement on the start date: at least 150 days
§ 93(2) sentence 1 no. 1 SGB III — wait too long and the condition is lost
Phase 1: six months
§ 94(1) SGB III — the unemployment benefit last received plus EUR 300 a month
Phase 2: straight after, nine more months, applied for separately
§ 94(2) sentence 1 SGB III — EUR 300 a month if business activity is shown by suitable documents

Documents to prepare

  • Unemployment-benefit notice showing the amount and remaining entitlement
  • Business plan, capital-requirement and financing plan, turnover and profitability forecast
  • Statement from a competent body on the Federal Employment Agency's form
  • CV and qualification certificates
  • Planned start date of the main-occupation self-employment
  • Access to your Federal Employment Agency online account
See the procedure on the official site

No form is attached to this procedure: the link leads to the official page that describes it.

What this page gives you

The guide above and the link to the official site. ActioFin does not produce any document for this page: whatever you fill in or file is done on the official medium.

Who this applies to

  • Recipients of unemployment benefit who take up self-employment as their MAIN occupation and thereby end their unemployment (§ 93(1) SGB III) — main occupation means, according to the Federal Employment Agency, at least 15 hours a week, and other activities may not take up more time
  • Anyone with at least 150 days of unemployment-benefit entitlement left when self-employment starts, where that entitlement does not rest solely on § 147(3) SGB III (§ 93(2) sentence 1 no. 1)
  • People with disabilities within the meaning of § 19 SGB III, even with fewer than 150 days or no entitlement — according to the Federal Employment Agency
  • NOT while grounds for suspension under §§ 156 to 159 SGB III exist or would have existed, including suspension during a benefit block (Sperrzeit) (§ 93(3))
  • NOT if fewer than 24 months have passed since an earlier start-up subsidy under SGB III ended, save for special personal reasons (§ 93(4))
  • NOT from the month after reaching standard retirement age (§ 93(5))
  • As a rule NOT someone who resigns from insured employment in order to set up — the Federal Employment Agency then usually considers support impossible

Worked example

Lena Hoffmann sets up as a freelance graphic designer

Lena last received unemployment benefit of EUR 1,650 a month (the amount comes from the unemployment-benefit calculator and her benefit notice) and has 240 days of entitlement left — more than the 150 days § 93(2) sentence 1 no. 1 SGB III requires on the start date. She first talks to her placement officer, has her business plan, capital-requirement and financing plan and turnover forecast reviewed by the chamber of industry and commerce (IHK), and files its statement with the online application BEFORE taking up self-employment (§ 324(1) sentence 1). The agency grants the subsidy at its discretion. Phase 1: six months at 1,650 + 300 = EUR 1,950, EUR 11,700 in total (§ 94(1)). She then applies for phase 2, proves her business activity with invoices and receives nine months at EUR 300, EUR 2,700 in total (§ 94(2)). Altogether EUR 14,400, tax-free under § 3 no. 2(a) EStG. The flip side: her unemployment-benefit entitlement is reduced by the days for which she received the grant at the level of the benefit (§ 148(1) no. 8 SGB III). Amounts are illustrative.

How to fill it in, step by step

  1. Check your remaining unemployment-benefit entitlement: at least 150 days must be left on the planned start date (§ 93(2) sentence 1 no. 1 SGB III).
  2. Book a counselling appointment with your placement officer BEFORE starting self-employment; they establish whether the grant is an option and list the documents required.
  3. Prepare a business plan, a capital-requirement and financing plan and a turnover and profitability forecast, and have your CV and qualification certificates ready.
  4. Obtain a viability statement from a competent body — a chamber, trade association, bank or, for instance, a tax adviser — on the Federal Employment Agency's form (§ 93(2) sentence 2 SGB III). The agency does not pay for it.
  5. Apply online for the phase 1 grant and upload the documents, before the start (§ 324(1) sentence 1 SGB III).
  6. Register your activity with the tax office (tax registration questionnaire) and check whether you are subject to compulsory pension insurance as a self-employed person.
  7. After phase 1, apply for phase 2 from your case overview and prove your main-occupation business activity (§ 94(2) sentence 1 SGB III).

Good to know

  • A discretionary benefit: § 93(1) and (2) SGB III say may; the Federal Employment Agency calls it a discretionary benefit (Ermessensleistung) with no legal entitlement, funded from contributions.
  • Competent bodies are in particular chambers of industry and commerce, chambers of crafts, professional chambers, trade associations and banks (§ 93(2) sentence 2 SGB III); the Federal Employment Agency also lists tax advisers and start-up advisory services, among others.
  • Where there is reasonable doubt about the business activity, the agency may require a fresh statement from a competent body for phase 2 (§ 94(2) sentence 2 SGB III).
  • The start-up grant is tax-free (§ 3 no. 2(a) EStG).
  • Phase 1 uses up unemployment benefit: the entitlement period is reduced by those days (§ 148(1) no. 8 SGB III). If you give up, the Federal Employment Agency says the remaining entitlement can be reinstated if fewer than four years have passed since it arose.
  • The EUR 300 expressly serves social protection (§ 93(1) SGB III: to secure a livelihood and for social security).

Common mistakes

  • Starting first and applying later. The application must precede the event giving rise to the benefit (§ 324(1) sentence 1 SGB III).
  • Waiting too long to start. Below 150 days of remaining entitlement, the condition in § 93(2) sentence 1 no. 1 SGB III is no longer met.
  • Treating the grant as a right. It is discretionary; the placement officer also assesses your skills and abilities (§ 93(2) sentence 1 no. 3).
  • Assuming phase 2 is automatic. It must be applied for separately and backed by documents on the business activity (§ 94(2)).
  • Setting up on the side. Only self-employment as a main occupation that ends unemployment is supported (§ 93(1)).
  • Resigning in order to start up with the grant. A benefit block suspends the entitlement, and no grant is paid while grounds for suspension exist (§ 93(3), § 159 SGB III).

Frequently asked questions

How much is the start-up grant?

For six months, the unemployment benefit last received plus EUR 300 a month (§ 94(1) SGB III), then on application nine months at EUR 300 (§ 94(2)). The unemployment-benefit calculator works out the benefit amount.

Am I entitled to it?

No. § 93 SGB III is worded as a discretionary benefit, and the Federal Employment Agency stresses that there is no legal entitlement: it must be convinced of the venture's prospects.

Who issues the viability statement?

A competent body, in particular chambers of industry and commerce, chambers of crafts, professional chambers, trade associations and banks (§ 93(2) sentence 2 SGB III). You choose the body; the agency does not cover the cost.

Is the grant taxable?

No, the start-up grant is tax-free under § 3 no. 2(a) EStG.

What happens to my unemployment benefit if I give up?

The entitlement period is reduced by the days for which you received the grant at the level of the benefit (§ 148(1) no. 8 SGB III). According to the Federal Employment Agency, the remaining entitlement can be reinstated if fewer than four years have passed since it arose.

Go further

Compute the related amounts

Understand this form: the related course

Related forms

Official sources

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Guide and document provided for information purposes only; they do not constitute personalised legal or tax advice. Check the recipient organisation's requirements and consult a professional if needed.