Gründungszuschuss: A Little-Known Grant That Can Help You Start Your Business in Germany
What is the Gründungszuschuss?
The Gründungszuschuss is a government grant in Germany that provides up to 15 months of financial support for unemployed individuals starting a business. It’s a one-time opportunity to secure funding while becoming self-employed—and unlike a loan, you don’t have to pay it back.
Introduction
Many people I meet ask me about the Gründungszuschuss, and it’s about time I write about this grant. If you're currently receiving ALG I (unemployment benefits) in Germany and thinking about self-employment, this grant could be a game changer.
But here’s the thing—many expats and immigrants have never even heard of it. And that’s a shame because it’s one of the best opportunities to get financial support when transitioning into self-employment.
I know this firsthand because I started my own business with the help of this grant. I’ve also worked with many founders who successfully secured the Gründungszuschuss, helping them go from unemployed to self-employed with financial stability.
So, let’s break it down:
What the Gründungszuschuss is
Who qualifies for it
How much money you receive
How to apply and common mistakes to avoid
Who Can Apply for the Gründungszuschuss?
The Gründungszuschuss is designed for people who want to become full-time self-employed. You’re eligible if you meet these requirements:
You are receiving ALG I (unemployment benefits) and have at least 150 days left when applying.
You’re starting a full-time business (at least 15 hours per week). This can be as a freelancer, consultant, coach, or business owner—as long as it’s a real, income-generating activity.
You submit a strong business plan that shows your business idea is viable.
You get an expert opinion (Fachkundige Stellungnahme) from a Chamber of Commerce, industry association, or bank.
The most important part? Your business must be serious and sustainable—you can’t just register a company and expect free money. The Agentur für Arbeit wants to see that you’ve got a real plan in place.
How Much Financial Support Do You Get?
The Gründungszuschuss gives you monthly payments in two phases:
Phase 1 (First 6 Months)
You continue receiving your last ALG I payment (so you don’t suddenly lose your income).
Plus, you get an extra €300 per month to cover social security (e.g., health insurance).
Phase 2 (Optional Additional 9 Months)
If your business is active and growing, you can apply for €300 per month for 9 more months.
To qualify, you’ll need to prove that your business is running successfully.
Total funding period: Up to 15 months.
This means you get time to stabilize your business without financial stress, which can make all the difference when starting out.
Why is the Gründungszuschuss Worth Applying For?
Let’s be honest—starting a business is risky. Having financial support while you build your client base is a huge advantage. Here is a summary of the key advantages of this grant as seen by many first time founders:
Gives you financial security so you don’t panic about making money immediately.
Lets you focus on growing your business instead of taking a side job for extra income.
Encourages expats and immigrants who may not have savings or family support in Germany.
Reduces the risk of failure by allowing you time to build a strong foundation.
I’ve seen many founders, including myself, use this grant to successfully transition into self-employment. The key is knowing how to apply correctly.
How to Apply for the Gründungszuschuss
The application process isn’t simple, but with the right preparation, you can significantly increase your chances of approval. Here’s a 6-step overview of what you need to do:
Step 1: Speak to Your Caseworker at the Agentur für Arbeit
Your first task is to inform your caseworker that you’re interested in applying for the Gründungszuschuss. At this stage, your main goal is to find out your application deadline—this is crucial because you need to apply while you still have at least 150 days of ALG I benefits remaining.
Step 2: Prepare a Strong Business Plan
This is the most in-depth and time-consuming step. Your business plan should outline:
Your business model – what you offer and to whom.
Income strategy – how you will generate revenue.
Market potential – why your business idea is viable.
From my experience working with founders, this step typically takes between 1 to 2 months of focused work. Good preparation here greatly improves approval chances.
Step 3: Get an Expert Opinion (Fachkundige Stellungnahme)
Once your business plan is complete, you (or your coach) must submit it to a recognized institution such as a business association, bank, or Chamber of Commerce for review.
This expert opinion is one of the key factors that the Agentur für Arbeit considers when deciding on your application. A weak or vague business plan often leads to rejection—so this review is critical.
Step 4: Register Your Business
Before submitting your application, you must officially register your business to prove that you’re actually starting self-employment.
If you are a freelancer (Freiberufler) – register with the tax office (Finanzamt).
If you need a trade license (Gewerbeschein) – register with the local trade office (Gewerbeamt).
Proof of registration is a mandatory part of your application.
Step 5: Submit Your Application
Now, it’s time to submit everything to the Agentur für Arbeit. You will need:
Your business registration
Your business plan & financial plan
Your expert opinion (Fachkundige Stellungnahme)
Your caseworker may request additional documents, so ensure everything is complete.
Step 6: Wait for Approval
Once submitted, the Agentur für Arbeit will assess whether your business is financially viable and meets the criteria for the Gründungszuschuss. Approval times can vary—sometimes a few weeks, sometimes longer, depending on the workload of your local office.
➡️Thinking about other funding options? If you’re eligible for an AVGS voucher, you may even receive free coaching support for this process.
Common Mistakes That Lead to Rejection
I’ve seen too many people apply without proper preparation and get rejected. Here’s what to avoid:
Not having 150 days of ALG I left – Apply early!
Submitting a weak business plan – It needs to show a clear path to profitability.
Not proving the business is full-time – If it looks like a side hustle, you won’t qualify.
Missing required documents – Double-check your paperwork before submitting.
If you prepare properly, your chances of approval go up significantly.
How Persona Coaching Helps Founders Apply for the Gründungszuschuss
At Persona Coaching, we support founders at all stages of the Gründungszuschuss application process—from developing a strong business plan to preparing for discussions with the Agentur für Arbeit.
Since this is a discretionary grant, approval is not guaranteed, but good preparation and diligence significantly improve your chances.
So far, every founder we’ve worked with throughout the entire application process has successfully received the grant. If you are eligible for an AVGS voucher, you may even be able to access support for this process at no cost to you.
➡️Want to know if you qualify or need help preparing your application? Let’s talk! Book a consultation here 👉 My Calendar
