What is a non-repayable start-up grant?

Do you want to start your own business but do not have the necessary funds to finance it? Nowadays, you do not have to give up on your dreams or postpone your plans. Every newly-established entrepreneur can apply for a non-refundable start-up grant.

Supporting entrepreneurs by awarding various types of grants is one of the forms of combating unemployment. There is no denying, however, that for a business owner, subsidies are primarily a means of starting their own business and sometimes making their dreams come true.

Grants are one-off financial assistance that is given to specific entities to carry out a specific action - in the case of a start-up, it is to get the company off the ground. As a rule, grants are non-refundable. However, if, despite the assistance received, the business does not grow sufficiently, the owner will have to reckon with having to repay the funds received.

Non-repayable start-up grants from the labour office

One of the most important issues when it comes to non-refundable grants from the Job Centre is that they are only granted for the establishment of a one-person business. Companies are therefore not eligible to apply for additional start-up funds. Nevertheless, obtaining a grant does not exclude the possibility of hiring employees. It is worth emphasising that the company must be established only after receiving a successful application (it is not available for previously registered activities).

Another important aspect is the availability of grants, as not everyone interested can apply for them. As it is mainly a form of combating unemployment, an entrepreneur setting up a business must take into account the need to meet specific conditions. The grant can therefore be obtained by a person who:

• is unemployed (registered at an employment office),
• is a carer of a person with a disability who is seeking employment and is not otherwise gainfully employed,
• is a graduate of a social integration centre/club and has not reported the suspension of his/her activity to CEIDG.

In addition, anyone interested must expect to meet a number of requirements. Grant applicants:

• may not, for a period of 12 months before submitting the application, reject an offer of employment, gainful employment, apprenticeship, training or community service, intervention work or public works, without giving a specific reason,
• cannot interrupt training, apprenticeship or community service,
• cannot reapply for funding to start a business or agricultural activity (if they have already received assistance from the Labour Fund),
• must not have carried out a business activity or been entered in a business register for a period of 12 months before submitting the application,
• must not have been convicted of an offence against trading for a period of 2 years prior to the application,
• may not submit a grant application to more than one employment office.

Non-repayable start-up grants from the European Union

Grants from the European Union are primarily aimed at young entrepreneurs. They are most often used to finance modern and imaginative projects based on a meticulously developed business plan. EU funds are granted from the European Funds, in the form of various programmes aimed at reducing differences between EU Member States.

It is worth emphasising that the European Funds do not only offer non-refundable grants for starting a business. Funded projects also include all kinds of training, career guidance, vocational courses, internships, apprenticeships and even postgraduate studies.

At present, EU start-up grants are one of the most popular forms of external funding for businesses. As in the case of a grant from the labour office, this form of aid is non-refundable - that is, it is not repayable like a loan or a bank loan. An entrepreneur applying for a grant must meet a number of requirements imposed by the European Funds.

EU grants are designed for people who:

• under 30 years of age, not in education or employment
• are over 30 years of age and not working

The conditions for obtaining subsidies are determined by the region in which the new enterprise is to be established and operate. The most common requirement is to demonstrate that the labour market situation in the area is difficult.

The one-off business funding can mainly benefit:

• the permanently unemployed,
• persons with disabilities,
• people with little education,
• people over 45 years of age.

An applicant for a non-repayable start-up grant must have a meticulously developed business plan. Before taking part in any of the EU programmes, it is also worth assessing the company's chances of taking off and growing, given current market trends.