Start-up funding · basic income support
Entry Allowance: Start-Up Funding From Basic Income Support
The entry allowance (Einstiegsgeld) is funding from the Jobcenter for people receiving basic income support (Grundsicherungsgeld, formerly Bürgergeld) who become self-employed as their main occupation. It is awarded as a grant in addition to basic income support for up to 24 months and is a discretionary benefit (Ermessensleistung) under § 16b SGB II.
Since July 1, 2026, the Bürgergeld has been called Grundsicherungsgeld (basic income support). This changes nothing for the entry allowance: it remains a discretionary benefit of the Jobcenter under § 16b SGB II, and the new priority of job placement expressly does not apply to start-ups with an entry allowance.
Who Gets the Entry Allowance?
People receiving basic income support who are capable of working and who start self-employment as their main occupation are eligible to apply. The requirement is that the self-employment is viable and is expected to end or reduce the need for assistance. The Jobcenter decides at its discretion. There is no legal entitlement.
How High Is the Entry Allowance?
There is no fixed flat rate. The Jobcenter sets the amount at its discretion. The calculation basis is generally the relevant standard rate (Regelbedarf), plus supplements. These depend mainly on the length of previous unemployment and the size of the household (Bedarfsgemeinschaft). The entry allowance is paid in addition to the ongoing basic income support.
With the following calculator, you get a first idea of the range your entry allowance could fall into:
Entry allowance calculator
Are you receiving basic income support and want to become self-employed? Estimate your possible entry allowance under § 16b SGB II.
Note: The entry allowance is a discretionary benefit. There is no legal entitlement and no fixed formula; the Jobcenter decides case by case. This estimate follows the usual assessment recommendation and is for orientation only.
Basis: § 16b SGB II. Besides the entry allowance, benefits for material expenses under § 16c SGB II and, after written approval, 100% funded consulting through an Activation and Placement Voucher (Aktivierungs- und Vermittlungsgutschein, AVGS; § 45 SGB III) are possible. Standard rate 2026: €563 (no increase). Check amounts against the current source before applying. Non-binding estimate, does not replace advice. As of June 2026.
Entry Allowance vs. Start-Up Grant
Which funding applies depends on the benefit you receive. If you receive unemployment benefit I (ALG I), the start-up grant (Gründungszuschuss) is an option; with basic income support, it is the entry allowance.
| Entry allowance | Start-up grant | |
|---|---|---|
| Target group | People receiving basic income support | ALG I recipients |
| Responsible body | Jobcenter | Employment Agency (Agentur für Arbeit) |
| Legal basis | § 16b SGB II | § 93 SGB III |
| Duration | up to 24 months | 6 + 9 months (2 phases) |
| Type | Discretionary benefit | Discretionary benefit |
| Proof of viability | usually required | expert opinion (fachkundige Stellungnahme) required |
How to Apply for the Entry Allowance in 4 Steps
- Book an appointment at the Jobcenter and discuss your plan before you start your self-employment.
- Create a business plan with a financial section and a viability section (proof of viability).
- Submit the application for the entry allowance under § 16b SGB II to the Jobcenter.
- Start your business once approved. The entry allowance runs in addition to basic income support.
Free AVGS Coaching as Preparation
Regardless of the entry allowance, people receiving basic income support can, after written approval, use AVGS start-up coaching that is 100% funded. With it, you can have a professional business plan created and prepare the proof of viability. This is the best basis for a successful entry allowance application.
In Addition: Funding for Material Assets (§ 16c SGB II)
Besides the entry allowance, the Jobcenter can also support self-employed people receiving basic income support with necessary purchases, under § 16c SGB II. Loans and grants are possible for material assets that are necessary and reasonable for the self-employed activity (e.g., equipment, tools, technology). Grants are generally limited to a maximum of €5,000; higher amounts are provided as loans. Both are discretionary benefits of the Jobcenter. This way, the entry allowance (living costs) and § 16c funding (investments) can be combined sensibly.
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.
Frequently Asked Questions About the Entry Allowance
Who gets the entry allowance?
People receiving basic income support who become self-employed as their main occupation, and whose self-employment appears viable, can receive the entry allowance. It is a discretionary benefit of the Jobcenter under § 16b SGB II. There is no legal entitlement.
How high is the entry allowance?
The Jobcenter sets the amount at its discretion. The calculation basis is generally the relevant standard rate, plus supplements depending on the length of previous unemployment and the size of the household. There is no fixed flat rate.
How long is the entry allowance paid?
The entry allowance is awarded as a grant in addition to basic income support for up to 24 months. It must be applied for before you start your self-employment.
What is the difference between the entry allowance and the start-up grant?
The entry allowance is for people receiving basic income support and comes from the Jobcenter. The start-up grant is for recipients of unemployment benefit I and comes from the Employment Agency. Both are discretionary benefits and require viable self-employment.
Official Sources, Information Sheets & Flyers
The authoritative primary sources to read up on: information sheets and program pages of the responsible funding bodies, as well as the relevant legal texts.
External links to official bodies, checked on June 19, 2026. Content and terms may change; the source itself is always authoritative.
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