Individuals who start a business out of unemployment can receive financial support.
Depending on whether you receive unemployment benefits (Arbeitslosengeld) or citizen’s benefit (Grundsicherungsgeld), you submit the application for funding either to the Federal Employment Agency or the Jobcenter. Do you need to apply for a residence permit that allows you to become self-employed in Munich first? Please review our online resources on the Residence Permit and Business plan viability check for the Foreigner’s Office.
Applying for the initial grant (Einstiegsgeld): Support from the Jobcenter
Are you receiving Citizen’s benefit (Grundsicherungsgeld, formerly known as Bürgergeld or ALG 2)? If so, you may be eligible for an initial grant (Einstiegsgeld) from the Jobcenter for self-employment. Whether you plan to work as a self-employed person as your primary or secondary source of income plays a decisive role in whether your application is approved. Our detailed guide explains how these two models affect your potential funding.
Are You Receiving Unemployment Benefits (Arbeitslosengeld) instead of Citizen’s benefit (Grundsicherungsgeld)?
In this case, the Jobcenter is not responsible for you. Instead, you can apply for the startup grant (Gründungszuschuss) at your local Employment Agency. The Startup Grant FAQ page provides details on how to proceed.