Applying for the Start-Up Grant
You apply for the start-up grant (Gründungszuschuss) at your Employment Agency (Agentur für Arbeit) before you start self-employment. Requirements (§ 93 SGB III): entitlement to unemployment benefit I (ALG I) with at least 150 days of remaining entitlement, a project as your main occupation, and a business plan with an expert opinion (fachkundige Stellungnahme). In our experience, the decision takes four to six weeks. The grant is a discretionary benefit (Ermessensleistung): there is no entitlement even with complete documents.
The Process in 5 Steps
Check your ALG I entitlement
At the time of application, you must still have at least 150 days of remaining entitlement to unemployment benefit I. This threshold is a hard limit; without it, the start-up grant is not possible. Check your remaining entitlement in your approval notice well in advance.
Run the numbers on your business idea
Make your plan concrete: target group, offer, prices, and the expected revenue. The self-employment must be set up as your main occupation (at least 15 hours per week).
Create the business plan & financial plan
The business plan is the heart of the application. It must demonstrate viability, with realistic planning of revenue, costs, and liquidity. This is often exactly where approval or rejection is decided.
Obtain the expert opinion
A qualified body (fachkundige Stelle) must confirm the viability of your plan, for example the Chamber of Commerce and Industry (IHK), the Chamber of Crafts (Handwerkskammer), a tax advisor, or a BAFA-registered consultant. Obtain this opinion in good time; it needs lead time.
Submit the application to the Employment Agency
Submit the application with all documents, strictly BEFORE you start self-employment. Anyone who registers the business beforehand generally loses the entitlement.
Tip: prepare the application in funded coaching
The business plan, financial plan, and expert opinion decide on approval. Through start-up coaching with the Activation and Placement Voucher (Aktivierungs- und Vermittlungsgutschein, AVGS), we work these out with you, 100% funded for ALG I recipients after written approval. You create your AVGS request yourself in one minute, and we help you personally with applying.
How Long Does Processing Take?
From submitting the application to the decision, it typically takes 4–6 weeks. If there are follow-up questions or requests for additional documents, it can extend to 8–12 weeks. The Agency checks the completeness of the documents, the viability of the business plan, and your personal suitability. Stay easy to reach during this time, because applicants who respond quickly are processed with priority.
What the Employment Agency Checks
- Do you meet the formal requirements (ALG I, 150 days, main occupation)?
- Is the business idea viable and realistically calculated?
- Do you have the personal and professional suitability?
- Is there a coherent expert opinion?
Since the start-up grant is a discretionary benefit, nothing is automatic. Careful preparation (business plan, financial plan, and expert opinion from a single source) is the most effective lever for approval.
Phase 2: Apply for the Extension Separately
The start-up grant runs in two phases (§ 94 SGB III): in phase 1, you continue to receive your ALG I plus €300 per month for six months. Phase 2 (nine more months at €300 each) is not automatic: you must apply for it separately and show that you are running your business intensively and as your main occupation (e.g., through your order book, revenue, proof of activity). Submit the application for phase 2 in good time before the first six months end.
Caution if you quit your job yourself: anyone who quits their job without good cause risks a suspension period (Sperrzeit) of up to 12 weeks (§ 159 SGB III). The suspension period shortens your ALG I entitlement and can thus endanger the required 150 days of remaining entitlement. Secure your entitlement first, before you hand in your notice.
The Documents You Submit
- Completed application form of the Employment Agency
- Business plan with financial and liquidity plan
- Expert opinion on viability
- Résumé and proof of qualifications
- Business registration, but only AFTER the application has been submitted
You will find a detailed step-by-step list in our application checklist.
Frequently Asked Questions About Applying
How many days of remaining ALG I entitlement do I need?
At least 150 days at the time of application. Without this remaining entitlement, the start-up grant is ruled out.
Do I have to submit the application before registering the business?
Yes, strictly before you start self-employment. Anyone who registers the business beforehand generally loses the entitlement.
How long does processing take?
Typically 4–6 weeks, or 8–12 weeks with follow-up questions. Complete documents speed up the decision.
Do I automatically get phase 2?
No. You must apply for the second phase (9 months × €300) separately and prove your business activity.
Am I entitled to the start-up grant?
No, it is a discretionary benefit. Careful preparation (business plan, financial plan, expert opinion) significantly increases the chance of approval.
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.
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.
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
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