Start-Up Grant in Cologne

How High Is the Start-Up Grant in Cologne?

The amount is set nationwide and does not depend on location: in phase 1 (6 months) you receive your last ALG I rate plus €300 per month, in phase 2 (up to 9 more months) only the €300. Over 15 months this adds up to around €13,500 to roughly €20,000.

Requirements for the Start-Up Grant

• Receipt of unemployment benefit I (not basic income support (Grundsicherungsgeld, formerly Bürgergeld) / ALG II)
• At least 150 days of ALG I entitlement still remaining when you start the business
• Self-employment as your main occupation (at least 15 hours/week)
• Personal and professional suitability
• Viable business plan with a reliable financial plan
• Expert opinion from a qualified body (fachkundige Stelle)

You will find all details, example calculations of the amount, and the complete process in the start-up grant guide. Do you receive basic income support instead of ALG I? Then in Cologne the entry allowance (Einstiegsgeld) from the Jobcenter may be an option.

Start-Up Grant in Cologne: Your Employment Agency

The contact point for start-up projects in Cologne is the Employment Agency in Cologne, Butzweilerhofallee 1, 50829 Köln, in the Ossendorf district, service number 0800 4555500. For mail, the agency’s postal address applies, not the visitor address.

The responsible agency is always the one at your place of residence. If you live in Leverkusen, Bergisch Gladbach, or the Rhein-Erft district and want to start a business in Cologne, you therefore submit the application not in Cologne but to your own agency.

Let the agency know about your plan before you start. The start-up grant is a discretionary benefit under § 93 SGB III; the agency decides in each individual case and is not bound to a fixed approval rate. What you can influence are timing and quality. When you begin the self-employed activity, at least 150 days of entitlement to unemployment benefit I must still remain. In addition, you need a complete business plan, a fully calculated financial plan, and an opinion that fits the industry.

Qualified Bodies in Cologne

The law names chambers of commerce and industry, chambers of crafts, professional chambers, trade associations, and credit institutions in particular as qualified bodies. In Cologne these are:

• Chamber of Commerce and Industry (IHK) Cologne, currently in the interim building Unter Sachsenhausen 5-7, 50667 Köln, main entrance Komödienstraße 18-24. The main building at Unter Sachsenhausen 10-26 is being renovated.
• Chamber of Crafts (Handwerkskammer) in Cologne, Heumarkt 12, 50667 Köln, phone 0221 2022-0.

Usual process: submit documents, professional review, usually a conversation, then the written opinion on viability. Depending on the body, a fee applies; processing time ranges from a few working days to several weeks.

Both chambers also run a STARTERCENTER NRW, the free initial consultation for start-ups in North Rhine-Westphalia. The legal list is not exhaustive: tax advisory firms, banks, trade associations, and business consulting firms also qualify. Ask your agency in advance which body is accepted.

If you want to use start-up coaching with an AVGS (Activation and Placement Voucher) before obtaining the expert opinion, you will find the responsible offices at the Employment Agency and the Jobcenter on the page AVGS coaching in Cologne. We present our support for starting a business on the page Business and start-up consulting in Cologne.

Regional Funding Alongside the Start-Up Grant

The state development bank is NRW.BANK, Kavalleriestraße 22, 40213 Düsseldorf, second office Friedrichstraße 1, 48145 Münster. Two products are typical for start-ups in Cologne:

• NRW.Mikrodarlehen: development loan of up to €50,000, term of up to ten years, six months repayment-free, financing share of up to 100 percent, without collateral. Eligible are start-ups and young companies up to five years after beginning business activity. A prerequisite is a positive recommendation from a STARTERCENTER NRW; the application is submitted before the project begins via NRW.BANK’s customer portal.
• NRW.BANK.Universalkredit: low-interest loan for investments and working capital, financing of up to 100 percent, application through the house bank, which can receive a liability exemption of 50 percent.

Before applying, clarify with your house bank and the development bank whether a loan can be combined with the start-up grant.

Two Examples From Cologne

The following examples are typical situations from our consulting practice. They are constructed and do not reflect individual clients. The Employment Agency decides on approval in each individual case.

Media production. A camera operator, after his contract with a Cologne-based production company expires, continues to work project by project and wants to go into business as a service provider for corporate films and livestreams as his main occupation. He needs a camera, audio equipment, and an editing workstation. The financial plan has to reflect seasonal fluctuations and payment terms of 30 to 60 days. For the opinion, documented inquiries, a realistic day rate, and the calculation of replacement investments are the decisive points.

Skilled trades. An electronics technician for energy and building technology with a master craftsman’s certificate loses her job and wants to build a business for photovoltaics and wallboxes in the south of Cologne. She needs a vehicle, tools, and pre-financing of materials. The responsible qualified body here is the Chamber of Crafts in Cologne, and entry in the register of craftsmen (Handwerksrolle) is also due. Critical are capital requirements, material lead time, and the question of when a first skilled employee will be hired.