You are already self-employed and need capital for investments, or you are about to start your business start-up and are looking for financing? The question often arises: Where can I get the money if my reserves are limited?

The government offers a little-known but extremely effective Funding programme: the Benefit for the Integration of Self-Employed Persons (LES) under § 16e SGB II. Many caseworkers are barely familiar with it, but this programme is available to you as a founder or as an entrepreneur in difficult times, provided you are currently ALG II receiving benefits.

At X-Group, we know this programme in detail. We help you apply for this grant and/or loan to secure your investments and finally achieve the self-employment that will lead you out of the need for assistance.

Requirements: Who can apply for LES?

The basic requirement for applying for LES is a current, active receipt of ALG II (Hartz IV). Important: The programme is available to you not only when you are starting out, finalise your start-up? but also if you have already been self-employed for years and need to make investments to viability improve your business (e.g. new software, promotional video for your website, better shop window advertising).

LES is a discretionary benefit programme of the Jobcenter. This means you have a right to apply and the staff member must process your application. Any rejection must always be justified – so you should submit your application with confidence!

Amount of funding: Grant versus loan

Through LES, you can apply for up to €5,000 as a grant . This money does not have to be repaid and can be used for essential business investments such as laptops, software, machinery, vehicles, or even for a complete business takeover .

If you need more money (e.g. €10,000 or €15,000), the amount above €5,000 can be loan approved as a loan. Important: There is no nationwide standard regulation. Each Jobcenter decides individually on the allocation between grant and loan, depending on its budget and whether it is convinced your investment will lead to success.

Proof required: Why your application must be convincing

The Jobcenter will only approve these funds if it is firmly convinced that the additional investment will end your need for assistance . The business must viable be able to generate entrepreneur’s salary your own income.

Your application must therefore consist of the following components:

• The application itself according to § 16e SGB II.
• A convincing Business Plan (or section of text) that clearly explains how you will end your need for assistance.
• A Financial Plan (usually over 36 months), which demonstrates viability.

The investments must be essential for business operations and absolutely necessary . This means: Without this investment, you would remain dependent on ALG II. The investments must secure or increase revenue.

The golden rule: Subordination of state funding

A frequently overlooked but crucial point is subordination. The Jobcenter is the last point of contact. Before your application is even processed, you must prove that you have no other Financing options options.

The golden rule is: You generally need two to three rejection letters from banks (e.g. from your main bank or the regional investment bank). Only once you have demonstrated that the investment cannot be financed elsewhere is not feasible , will the Jobcenter step in as the subordinate authority.

The seal of quality: The expert opinion

Another important component for a successful application is the Expert opinion. This is prepared by a business consultant (such as us!), tax advisor, or the Chamber of Industry and Commerce/Chamber of Crafts.

It serves as an external Quality seal and confirms to the Jobcenter:

1. That the Financial Plan is realistic.
2. That the investments be essential for business operations are.
3. That the plan can actually lead to viability of the business and an end to reliance on benefits.

Use this opportunity to finance your start-up or growth. The right support helps you plan your next steps.

Explore your LES grant options: book your free initial consultation now!

We help with strategic planning, preparing your business plan and supporting your application for assistance for self-employed people (LES). Prepare your start-up financing with a clear plan.

About X-Group

Belief in your potential and a focus on the things that truly move you forward are the top priorities at X-Group GmbH in Berlin. You receive tailored support that identifies the most important bottlenecks. This way, you remove obstacles and can work purposefully towards your success.