What is funded?

The funds provided are primarily intended for the purchase of tangible assets for the planned or already existing self-employed activity. For example, business and office equipment (e.g. computers, telephones, office furniture), vehicles, machinery, or necessary tools can be financed. Marketing measures such as websites, image films, and print advertising can also be supported.

However, certain costs are excluded, such as the registration of the business or the rent for business premises. Self-employed individuals who are already active can also have consultations and training financed, provided these serve to optimise their business and impart entrepreneurial knowledge.

It should be noted, however, that this benefit is a so-called discretionary benefit For example, if you wish to finance a specific printer for your office, you must present three different printer quotations to the responsible Jobcentre officer. The Jobcentre will then decide whether and which printer will be financed. Usually, the decision is made in favour of the most cost-effective offer.

How and to what extent is funding provided?

The benefits can be granted to the applicant in three different ways:

1. as loan or
2. as grant or
3. as grant and loan

Grants can be approved up to a maximum of 5,000 euros and do not have to be repaid. loan can, in contrast to grants, exceed the amount of 5,000 euros, but must be repaid in instalments of 1% of the loan amount.

What are the requirements?

To receive benefits for the integration of self-employed persons, several requirements must be met. Firstly, proof of successful participation in the ‘Self-Employment Suitability Assessment’ and the ‘Start-up Seminar’ is required. In addition, it must be demonstrated that the self-employed activity will end the need for assistance within a certain period. For start-ups, this period is set at 12 months; for those already self-employed, at 6 months. Furthermore, the viability of the applicant’s self-employed activity must be proven. The assets to be funded must also be considered necessary and appropriate.

What information must be provided when applying?

For the Jobcentre to process the application, all application documents must be complete. Completeness is achieved when the following documents are submitted:

1. The application for LES (according to §16c SGB II)
2. Expert opinion
3. De minimis declaration
4. 36-month financial plan
5. Narrative section (business plan text)
6. CV
7. Tax registration/business registration/craft registration
8. Certificate of participation in a start-up seminar
9. Quotations for the necessary business investments
10. Optional contracts (partnership agreement, lease agreement, etc.)
11. Bank rejections (at least 2)
12. Other individual documents that may be requested by the Jobcentre

How does the application process work?

It is important that you submit your application for funding BEFORE purchasing the items to be financed. Then, wait for feedback from your responsible Jobcentre officer. Only after approval can you make the purchases. After buying the items, you must provide proof of how the funds were used. If you have received a grant, the process is then complete. If you have received a loan, repayment of the funding begins as soon as you are able to make payments.

What are the most common mistakes?

Naturally, mistakes can occur during the application process, which may have more or less serious consequences. The following common sources of error should be avoided when applying.

Lack of knowledge about funding opportunities

Obstacles can arise as early as the initial conversation with the responsible officer. Often, self-employed individuals are not sufficiently informed about the available funding opportunities, resulting in a lack of necessary knowledge. Potential applicants are also frequently discouraged by staff and do not even enquire about the funding application.

Missing or inadequate documents when applying

Mistakes are also often made in the application and the required documents. Cost estimates for the items to be funded or bank rejections of loan applications are often missing. These documents are essential for the approval of funding, as they demonstrate the necessity of the investment. Inadequate financial and business plans are also a common source of error. These are also used to assess the need for funding and should therefore be meaningful and professional.

Insufficient explanation of how the need for assistance will end

Another frequent reason for application rejections is an inadequate explanation of how the self-employed activity and the necessary investments will end the need for assistance. Therefore, a clear and logical argument should be provided to avoid rejection of the funding.

Failure to comply with requirements

Compliance with Jobcentre requirements is also crucial for the decision on the funding application. Guidelines, deadlines, and communication requirements should always be observed to avoid sanctions or rejection of the application.

Frequently Asked Questions

• How much funding can I apply for at the Jobcentre?

  A non-repayable grant of up to 5,000 euros can be awarded. For an interest-free loan, there is generally no upper limit.

  Can I use the funding as working capital reserve or for my own salary as an entrepreneur?

  The use of funding as a reserve or for the entrepreneur’s salary is generally excluded.

  Do I have to repay all funding?

  Whether the funding must be repaid is decided individually for each application. However, a maximum of 5,000 euros can be awarded as a non-repayable grant.

  Is there an upper limit for funding?

  There is no upper limit for funding.

  Are loans from the Jobcentre subject to interest?

  The loans granted as part of the funding for self-employed persons are generally interest-free.

  Can established businesses apply for funding?

  Established businesses can apply for funding for self-employed persons, provided there is a current notice of receipt of Unemployment Benefit II.

  Do I have to use the funds as applied for?

  Yes, the funds must be used as specified, unless a request for reallocation is submitted and approved.

  Do I have to repay unused funds?

  Unused funding must generally be repaid.

  When does repayment of the funding loan begin?

  The start of repayment of the approved loan is decided on a case-by-case basis. As a rule, repayment is due once viability has been demonstrated.

  Do I need an expert opinion when applying?

  As a rule, an expert opinion is required when submitting the application. Such an opinion can be obtained from various providers – including the X-Group Institute.

How can the X-Group Institute help?

The entire application process and the associated collection of necessary documents and evidence present a major challenge for many self-employed individuals. For this reason, Managing Director Daniel Schäfer and his X-Group team offer comprehensive support for self-employed persons and start-ups. The support focuses on the following areas:

1. Checking the requirements for the application
2. Assistance with handing over and submitting the application
3. Review of all documents for completeness and accuracy
4. Preparation of the expert opinion
5. Support throughout the entire application process and any subsequent amendments
6. Preparation for meetings and, optionally, accompaniment to appointments
7. Assistance with completing the EKS form and proof of use of funds

Are you planning to apply for Jobcentre funding or are you already in the process? We would be pleased to support you with your application! You are welcome to contact us by telephone at 030 683 28 26 00 or via our contact form and arrange a free initial consultation with us immediately!