The Gründungszuschuss from Germany's Federal Employment Agency (Agentur für Arbeit) lets unemployed people receive a non-repayable grant to start their own business. The payments are intended to cover the founder's living costs in the first months.

Who is eligible

You must be unemployed and entitled to unemployment benefit (Arbeitslosengeld I, ALG I). When you become self-employed, you must still have at least 150 calendar days of entitlement left. People receiving Bürgergeld cannot get this grant.

Two stages of payments and how much you receive

The first stage lasts six months: each month you receive the amount of your previous ALG I plus a flat €300 towards social insurance. If you can show intensive business activity, you can apply for a second stage of nine months with €300 a month.

The business plan and the expert assessment

Because the grant is discretionary (Ermessensleistung), the quality of the business plan is crucial. It should include a market analysis, a marketing strategy and a financial plan, usually covering three years. A mandatory requirement is an assessment of the project's viability (Tragfähigkeitsbescheinigung) from a competent body, such as the IHK, the chamber of crafts, a tax adviser or a bank.

The interview with your employment adviser

Before applying, you have a personal interview with your adviser at the Agentur für Arbeit. You need to show convincingly that self-employment is the best and most sustainable way out of unemployment compared with looking for a job on the open market.

What to check

  • Check the exact number of ALG I days you have left in the agency's online account.
  • Draw up a detailed financial plan with a break-even calculation for the first 36 months.
  • Get the expert assessment of your idea's viability (fachkundige Stellungnahme).
  • Apply for the grant before you start self-employment, while you are still receiving ALG I.

Example situation

A marketing specialist with ALG I of €1,600 receives €1,900 a month for six months in the first stage, which lets her win her first three corporate clients without taking out a loan.

Next step

The grant is tax-free and does not have to be repaid; the key is to start the process before you register your business (Gewerbeanmeldung).

Official information on this topic

Checklists and examples are organisational recommendations. Requirements depend on the procedure, the city and your situation; check them with the relevant office before you act. Please discuss legal and tax questions with an authorised professional.

This article was prepared with the help of AI. The example illustrates the approach and does not describe a client case.