First Business - Startup Support - Government Assistance to Start
Many young people, after completing the stage of studies, look for a job for a very long time - either unsuccessfully or among offers unrelated to their education. In response to numerous criticisms regarding the lack of sufficient support for those starting their adventure on the labor market, the Ministry of Labor and Social Policy in cooperation with Bank Gospodarki Krajowej has prepared a system of preferential loans for students and graduates who have an idea for their own business.
Who can benefit from support under the program?
The discussed program "First business - Support in the start" is to consist in granting loans for a very specific purpose - setting up a business by a specific group of people. These include the unemployed:
- graduates of schools and universities within 48 months of receiving the diploma,
- final-year students of higher education.
According to the plans, the first loans are to be granted this year (the first stage is to be launched by the end of the third quarter), but students and graduates from the following voivodeships will be able to take advantage of them:
- Masovian Voivodeship,
- Lesser Poland,
In other regions, support in the form of loans is to be available from January 2014.
Setting up a business is the primary, but not the only, purpose for which the loan funds can be allocated. Under the program, a loan may also be granted to create a new job for the unemployed, including the unemployed referred by the employment office. However, the workplace in question must be created in a company that was created thanks to the previously granted loan - it is to be a form of additional support for the newly created business.
What support is to be provided under the program?
These loans are to have a low interest rate (currently 0.69% per annum). It is worth noting that this is support granted under the so-called de minimis aid, due to preferential financing, which differs significantly from market conditions.
The loan repayment period will not exceed 84 months, i.e. 7 years. However, this is not a hard line.The program provides for the possibility of granting a grace period in the repayment of the loan principal for a period of one year.
As for the maximum amount of support, it is to be 60,000. PLN, while the payment of funds will be made in accordance with the schedule presented by the applicant and approved by the financial intermediary only after registering the business.
In the case of a loan granted to create a job for the unemployed - the borrower will receive it not earlier than after the first year of operation. It is to be a maximum of 20 thousand. zloty. A bonus that will be available to young entrepreneurs employing an unemployed person referred by the poviat labor office is the possibility of applying for the redemption of the outstanding amount of the loan principal (provided that the payments made so far have been made in accordance with the planned schedule and the position created will exist for at least a year ).
In order to receive a loan, a young entrepreneur will have to issue a promissory note and obtain guarantees from two natural persons. In special cases, it may be necessary to establish additional security.
In addition, in order to receive a loan, interested persons will be required to submit an appropriate application along with a simplified business plan for the project, for the implementation of which the funds from the loan are to be allocated.
Agreement between the Ministry of Labor and Social Policy and BGK
The agreement concluded between the Ministry of Labor and Social Policy and BGK enables the implementation of the program aimed at granting low-interest loans for the above-mentioned people. PLN 21.5 million was allocated for the implementation of the first stage.
BGK will be the managing authority of the program throughout its duration. Loans will be granted by financial intermediaries selected by the coordinator - commercial banks, loan funds.
The task of intermediaries will be to reach students and graduates, as well as servicing loans, monitoring repayments and collecting unpaid installments. On the other hand, BGK will be responsible for the monitoring of intermediaries, the analysis of operations carried out within the scope of the program, loan cancellation and reporting.