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7 Practical Tips for Your Start-Up Grant Application

Who is funded, how high is the grant, and which seven tips raise your chance of approval?

Who gets the start-up grant (Gründungszuschuss) and how much is paid out is explained on the main page: requirements for the start-up grant and amount of the start-up grant. This page focuses on practice: seven tips that help your application reach the Employment Agency (Agentur für Arbeit) complete and easy to follow.

7 Tips for a Successful Application

1

Plan the application with 8–12 weeks of lead time

Preparation, the business plan, and the expert opinion (fachkundige Stellungnahme) take time, and your remaining entitlement must still be at least 150 days when you start self-employment. If you start early, you will not end up under deadline pressure.

2

Get the expert opinion in good time

The expert opinion from a qualified body (fachkundige Stelle) is mandatory and needs lead time. Clarify early who will issue it: the Chamber of Commerce and Industry (IHK), a tax advisor, or a BAFA-registered consultant.

3

Present your personal suitability systematically

Show the common thread linking your qualifications, your experience, and the business idea. The Agency funds people it believes can carry it out successfully.

4

Plan conservatively in your financial planning

Realistic, rather cautious numbers appear more credible than euphoric forecasts. A clean liquidity plan shows that you will also get through the start-up phase.

5

Make sure all details match across all documents

The business plan, financial plan, and application form must be free of contradictions. Differing numbers are a classic reason for follow-up questions and delays.

6

Prepare for the conversation (if you are invited)

Some Employment Agencies invite applicants to a conversation. Know your key figures and be able to explain your concept in a few sentences. That conveys confidence and suitability.

7

Stay reachable during the review

Applicants who respond quickly are processed with priority. Respond promptly to follow-up questions or requests for additional documents. This noticeably shortens processing time.

Frequently Asked Questions About the Application

Who does not get the start-up grant?

People receiving basic income support (Grundsicherungsgeld), for whom the entry allowance (Einstiegsgeld) is available, as well as people with less than 150 days of remaining entitlement to unemployment benefit I (ALG I). The start-up grant requires an ALG I entitlement.

Is the start-up grant tax-free?

Yes. The start-up grant is tax-free and does not have to be repaid.

How do I increase my chance of approval?

With a reliable business plan, a realistic financial plan, and a convincing expert opinion. This preparation can be done as start-up coaching through the Activation and Placement Voucher (Aktivierungs- und Vermittlungsgutschein, AVGS): once the voucher has been approved in writing, your personal contribution is €0. The Employment Agency decides on the start-up grant itself at its discretion.

Related service

Entry allowance: start-up funding from basic income support

If you receive basic income support (Grundsicherungsgeld, formerly Bürgergeld), you do not qualify for the start-up grant (Gründungszuschuss), but you can qualify for the entry allowance (Einstiegsgeld) under § 16b SGB II. We will check with you which route is open to you.

Pavel Deuble, start-up consultant and specialist author

About the author

Pavel Deuble

Start-up consultant & BAFA-registered business consultant · Owner of Unternehmenswerk

Pavel Deuble is the owner of unternehmenswerk and managing director of UW Unternehmensweg GmbH. He is listed in the BAFA register of consultants (consultant ID 191790); the AVGS programs run through the AZAV-certified UW Unternehmensweg GmbH (provider approval Z-000392-2). Since 2018 more than 750 business plans, 4.88 out of 5 on ProvenExpert from 92 reviews.

More on the Start-Up Grant

We check your eligibility – free and non-binding. In 30 minutes, we clarify whether the start-up grant is an option for you and show you the next step.

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