Start-up grant

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The start-up grant is a state transfer payment to promote a business start-up , which according to §§ 93 f. Third Book of the Social Security Code (until March 31, 2012: Sections 57, 58 SGB III old version) can be paid by the German Federal Employment Agency to recipients of unemployment benefit who become self-employed full-time and thus end their unemployment. The start-up grant combines the individual measures granted until 2006, namely the bridging allowance and the start- up grant ( Ich-AG ), into one funding instrument. Since December 28, 2011, the start-up grant for new applications is no longer a compulsory benefit, but only a discretionary benefit . As a result, savings of more than € 1 billion per year are expected in the budget of the Federal Employment Agency.

The promotion of business start-ups is one of the instruments of the Hartz concept ; In 2005, around 250,000 unemployed people were supported in starting their own business . According to estimates by the Hamburg employment agency, around 20% to 30% of these start-ups failed. According to more recent statistics, 93.2% of those receiving the start-up grant no longer registered as unemployed - at least in the first 6 months after the start of the grant. In 2011, the start-up grant was granted 240,000 times.

validity

The start-up grant was created by the law for the further development of basic security for jobseekers of July 20, 2006 ( Federal Law Gazette I p. 1706 ) with effect from August 1, 2006 and applies to grants granted from this point in time. Exception: Anyone who started their preparations for a start-up under the conditions of the bridging allowance before July 31, 2006, but did not set up their company until after July 31 and was not entitled to a start-up subsidy solely because of insufficient residual entitlement to unemployment benefit, could until 31. October 2006 with the previous bridging allowance. There were no changes to ongoing measures that were approved up to and including July 2006 and the bridging allowance and start-up subsidy continued to be paid until the end of the funding period.

Eligibility requirements

Recipients of unemployment benefit I who end their unemployment by taking up self-employed and full-time employment can receive support from the start-up grant to secure their livelihood and social security if they meet the following requirements. Even if the requirements are met, there is no legal entitlement to the start-up grant. Whether the service is granted in individual cases is at the discretion of the agent, who must decide on the application for the start-up grant without any discretion .

unemployment

Since it is about ending unemployment, only people who are actually unemployed can be supported. A direct transition from an existing employment relationship to self-employment is therefore not encouraged. There must be at least one day of unemployment.

Right to unemployment benefit for at least 150 days

The business start-up must be entitled to compensation in accordance with SGB ​​III (generally unemployment benefit, but also possible with transition benefit ). A short-term interruption of up to 1 month between the entitlement to compensation payments and the start of self-employment does not exclude the granting of a start-up grant. In addition, he must still be entitled to unemployment benefit for at least 150 days at the time of starting self-employment. Business start-ups that only start after the right to unemployment benefit has been exhausted will not be funded. A "start of self-employment" in this sense does not necessarily require that the entrepreneur must have started business operations in full. A recording can already lie in the implementation of preparatory activities (acquisition of office supplies, placing advertisements, etc.).

Sustainability of the business start-up

The start-up should lead out of unemployment and create a sufficient income base in the long term. The start-up concept must therefore be sustainable. The applicant must prove the technical and material requirements for successfully exercising the self-employed activity by means of a statement from a competent body (e.g. Chamber of Commerce and Industry, credit institute).

Personal and professional aptitude

In addition, the founder must demonstrate to the Federal Employment Agency his or her knowledge and skills for performing the self-employed activity, for example through professional and entrepreneurial qualifications, professional experience or participation in measures to prepare for the start-up. If there are doubts about the personal suitability of the applicant, the employment agency can request participation in measures to prepare for setting up a business.

Exclusion of benefits

Funding is excluded if business start-up funding according to SGB ​​III has already been granted and no 24 months have passed since this funding ended. In addition, the entitlement expires from the month in which the founder turns 65. The start-up grant is not paid as long as the entitlement to unemployment benefit, for example due to a blocking period , would be suspended.

Preparation and application

The application must be submitted to the responsible Federal Employment Agency on an official form before starting self-employment. A competent body has to assess the start-up project and certify the viability. The start-up consultants are particularly suitable for this:

A business plan is required for the review and comment , which should consist of the following documents:

If a subsidized or unsupported self-employed activity has been given up beforehand, the reason for the task must be given.

Duration and amount of funding

The duration of the funding through the start-up grant is a maximum of 15 months. It is not limited by the duration of the remaining entitlement to unemployment benefit. The funding comprises two phases:

In the first phase, which lasts 6 months, the start-ups receive a subsidy in the amount of their last individual unemployment benefit to secure their livelihood. In addition, an amount of € 300 per month is paid for social security. There is the possibility of voluntary insurance in the statutory health and long-term care insurance and pension insurance. Business start-ups can continue to be insured against unemployment.

In the second phase, which lasts 9 months, only an amount of € 300 per month is paid. Further funding is in turn at the discretion of the employment agency. The fact that the start-up was funded for the first 6 months alone does not give rise to a legal entitlement to further funding. Business start-ups are only further funded if there is intensive business activity and full-time entrepreneurial activities and this is proven by the founder. It is also important whether the information given in the business plan for the first 6 months has been confirmed and the concept has proven to be viable.

Again unemployment

If self-employment is given up and unemployment occurs again, the duration of the remaining entitlement to unemployment benefit is reduced by the number of days for which the start-up grant was paid, up to a maximum of the number of days that would have been available in unemployment. No negative balance is formed that could be offset against future unemployment.

Tax treatment

The start-up grant is tax-free ( § 3 No. 2 EStG ) and is not subject to progression . Since it does not represent a wage replacement benefit , such as unemployment benefit , it does not have to be declared in the income tax return.

Crediting for voluntary insurance in the statutory health insurance

The start-up grant, minus the flat rate for social security of € 300, is used as income to calculate the contribution to the statutory health insurance . Since 2010, the income threshold for recipients of the start-up grant and entry fee has been € 1,277.50. If the contributory income is below this limit, at least € 1,277.50 will be used for the calculation.

Anyone who is subject to compulsory insurance ( Section 5 SGB ​​V ) or who is voluntarily insured and who fulfills the insurance requirements ( Section 9 (1) SGB V) is eligible for insurance . This includes people who have withdrawn from compulsory insurance and who were insured for at least 24 months in the last 5 years prior to withdrawal or for at least 12 months immediately prior to withdrawal. The declaration of membership must be made within 3 months after the end of the compulsory insurance, otherwise the right to membership expires. The voluntary insurance begins on the day following the end of the compulsory or family insurance, otherwise on the day of joining. It ends with the start of compulsory membership (employment, receipt of wage replacement benefits), within the framework of a family insurance or through timely termination in compliance with the commitment period.

Voluntarily insured self-employed persons and those insured by the artists' social insurance fund who pay the general contribution rate (15.5%) to their statutory health insurance are entitled to sickness benefit from the 43rd day of inability to work. Often the general contribution rate is only offered as part of an optional tariff, which results in a three-year commitment to the health insurance company. For members who are not entitled to sick pay, a reduced contribution rate of 14.9% and a commitment period of currently 18 months apply.

Alternatively, the self-employed can also take out private health insurance. Insurance premiums are agreed that are independent of income and are based on the individual characteristics of the insured. A right to admission to private health insurance exists only in the basic tariff ; in addition, the insurer can refuse admission.

Alternatives

The entry fee offers an alternative for people who do not meet the funding requirements for the start-up grant. In addition, a large number of funding programs from the field of general economic development are available to start-ups (e.g. StartGeld from KfW-Mittelstandsbank).

Differences between Ich-AG and start-up grant

Although the aim of the two models is the same, there are significant differences. The most important one is the requirement to come up with a business plan. The concept of self-employment was not examined within the framework of the Ich-AG. This led to a high degree of deadweight effects : Shortly before the ALG1 expired, many unemployed people founded an I-AG. So they took the offered money with them, but without attaining sustainable independence. Deadweight effects were also favored by the fact that the support of the Ich-AG ended as soon as the self-employment produced a profit. According to the new law, the viability of self-employment must be proven beforehand and the success of the funding is harmless.

Another key difference is the treatment in relation to social security . The aim of the Ich-AG was a compulsory membership in statutory pension and health insurance. According to the new law, recipients of the start-up grant (like other self-employed persons) have the freedom to choose their old-age and health insurance.

Change in the legal situation from December 28, 2011

The Federal Cabinet has approved the not requiring consent law called "Law to improve the chances of integration in the labor market" on 25 May 2011th The intention is to reduce the previous instruments of labor and employment promotion to the most effective instruments from 43 to 31 offerings. The new legal regulation provides for the following changes:

  • The start-up grant is converted from a partial compulsory benefit to which the unemployed person is entitled to a full discretionary benefit.
  • The applicant must now have a remaining entitlement to unemployment benefit of 150 days instead of the previous 90 days.
  • The delivery head is reduced by swapping the duration of the funding phases. The first funding phase (unemployment benefit plus lump sum for social security of € 300) will be reduced from 9 to 6 months, the second funding phase (lump sum for social security of € 300) will be extended from 6 to 9 months. The total funding period is still 15 months.
  • In future, entrepreneurship and a high level of commitment will be required right at the start of unemployment and start-up funding must be applied for early. In individual cases, based on the professional prognosis for the viability of the foundation as well as the personal suitability of the founder, a decision will be made for self-employment at the discretion.
  • As before, the viability of the submitted start-up concepts will be assessed by a competent body .

On September 23, 2011, the German Bundestag passed the above-described changes in the law to improve integration opportunities in the labor market. Part of the law are also changes and massive cuts in the start-up grant. Decisive were the votes of the ruling coalition consisting of CDU / CSU and FDP, while the other parliamentary groups rejected the law. In the run-up to the event, associations and scientists also voiced severe criticism of the plans. In particular, the presentation that the start-up grant is not an effective instrument for promoting the labor market came into the focus of science and politics. For hypotheses in the draft law, what constitutes a successful foundation, there is a lack of empirical evidence and a scientific survey procedure in the context of quality assurance. The draft law would not increase the agencies' discretion. As before, a start-up subsidy is linked to framework conditions and a viability is to be checked by specialist bodies. The justification for the draft is insufficient and even misleading, as it suggests changes that are not included in the draft. A two-thirds reduction in the budget would not put the agency in a position to neither advise the start-up grant in an individual consultation in a result-oriented manner nor make unencumbered forecasts on the suitability of a start-up.

The cuts are intended to save almost € 5 billion between 2012 and 2015.

The legal regulation of the instrument reform should pass the Federal Council on October 14, 2011 . Therefore, the planned changes to the start-up grant could have been effective with the publication before November 1, 2011: Only applications before the publication date of the legal change and the associated start of self-employment, which must also be before the publication date, will then still be subject to the old law treated. However, as expected, the change in the law was not confirmed and referred to the mediation committee, which on November 22, 2011 dealt with the Federal Government's counter-statement to the Federal Council's negative opinion of August 25, 2011. The law to improve integration opportunities in the labor market was published on December 27, 2011 in the Federal Law Gazette. The new rules for the start-up grant - in its original wording - will come into force on December 28, 2011.

Web links

Individual evidence

  1. ↑ Bundestag printed paper 17/6277 of June 24, 2011, page 83.
  2. ↑ Labor market demand employees ( Memento of the original dated August 6, 2006 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.  @1@ 2Template: Webachiv / IABot / www.bmas.bund.de
  3. ↑ Julia Hildebrandt: Alone against the rest of the business world. In: Welt Online from August 19, 2004 .
  4. ↑ Statistics on employment and unemployment after participants left the labor market policy instruments of the Federal Employment Agency
  5. ↑ Statistics on start-up subsidies. Accessed on December 6, 2012.
  6. ↑ Federal Social Court, judgment of May 5, 2010 File number: B 11 AL 11/09 R
  7. ^ "Law to improve the chances of integration in the labor market", http://www.existenzgruender.de/selbstaendigkeit/entendung/branchen_zielgruppen/arbeitslose/02463/index.php
  8. ↑ "Gründungszuschuss", http://www.gruender-unternehmer-zentrum.de/foerdermittel_gruendungszuschuss.html
  9. ↑ Reductions and changes to the start-up grant decided by the Bundestag
  10. ↑ Resolution of the Federal Council on referral to the Mediation Committee of October 14, 2011 ( Memento of the original of December 3, 2011 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. (PDF; 45 kB)  @1@ 2Template: Webachiv / IABot / www.bundesrat.de
  11. ↑ Federal Council stops law: new job subsidies disadvantages unemployed people . Handelsblatt dated October 14, 2011.
  12. ↑ Counter-statement by the Federal Government on the negative opinion of the Federal Council of 25 August 2011 (PDF; 482 kB).
  13. ↑ Consultation postponed from November 8th to November 22nd  ( page no longer available , search in web archives )  Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice. (PDF; 9 kB).@1@ 2Template: Toter Link / www.bundesrat.de  
  14. ↑ Resolution recommendation of the Mediation Committee of November 22, 2011  ( page no longer available , search in web archives )  Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice. (PDF; 96 kB).@1@ 2Template: Toter Link / www.bundesrat.de  
  15. ↑ BGBl. I, page 2854 f
  16. ↑ Article 51, Paragraph 3 of the Act to Improve Integration Chances on the Labor Market, Federal Law Gazette 2854, 2926.