Apply for a start-up loan – the path to self-employment

Self employment under start up loan

You are considering self-employment, that is starting a business, but you lack the capital to put your plans into action? Below you will find out how and where you can apply for a start-up loan in order to finance and realize your business start-up project.

What is important BEFORE applying for a job:

Starting a business usually begins with a business registration. However, if you want to be a freelancer, you have to register your freelance work. This takes place at the tax office and represents the first step in the application for a start-up loan. Once registered, future founders will need to go through more formalities depending on the industry: for example, you need the membership of the chambers if you are in retail or want to work independently in the craft. Incidentally, membership in the chambers is mandatory. For trades that require a license, there is a so-called master compulsion: Business founders have to prove their qualification in the form of a master craftsman certificate (or comparable certificates).

Also for some activities from industry, trade and service the freedom of trade is restricted. In principle, a license to perform the desired activity is subject to certain conditions. For example, insurance intermediaries, arms dealers or pharmacists require a very specific permit. In the case of a business registration, as well as the relevant chambers, the employers’ liability insurance association, the tax office and the statistical office are usually informed.

The business plan: basis for the promotion of business start-up

But before you apply for a start-up loan, you need to consider another point: the business plan, also called the business plan, which forms the basis of each start-up. In order to benefit from (state) support, he is required. A business plan contains detailed information about the product or service, the founders, the market and financing.

Funding for founders through loans, grants and equity capital

The federal and state governments support founders both before and after starting their business with profitable financing models. In the following, we have therefore put together the most important institutions together with the necessary prerequisites. In this way, you get a complete overview of the various financing options that are available to you when starting a business.

Support from the employment agency

You have been approved for a start-up loan, but the funding is insufficient? In that case, the state has yet another aid in hand: If future founders receive unemployment benefit I, they can apply for a start-up loan subsidy for a period of 15 months if they end their unemployment by taking the step into self-employment.

Also, recipients of unemployment benefit II can get a support: the starting money. Whether and in what amount you receive entry-level allowance for setting up a business is decided by the personal contact person or the personal contact person in the job center.

In the process, it will be examined whether founders will no longer be permanently dependent on unemployment benefit II as a result of new employment and whether support for the integration into the general labor market is required.