Co-financing for starting a business

Service Business

Unemployment among university graduates is a serious problem. In order to support young people entering the labor market, the Ministry of Labor and Social Policy established cooperation with BGK, creating a government program, thanks to which many people may receive funding to start a business in the form of preferential loans.

Co-financing for starting a business - for whom?

The program is called "First business - Startup support" and is aimed at those who want to start their own business:

  • graduates of schools and universities looking for a job within 48 months from the date of receiving the diploma,
  • the unemployed,
  • final-year students of higher education.

In the first stage of the program, only the inhabitants of the Mazowieckie, Małopolskie and Świętokrzyskie voivodships could obtain funding for starting a business, and from the beginning of the year, subsidies for companies are granted throughout the country.

Support at the start also offers preferential loans to create a job for an unemployed person (including the one referred by PUP). There is a condition here - the position in question must be created in a company that previously received funding to start a business under the program. So it is a kind of bonus aid from the government.

Subsidies for companies - what conditions?

The subsidy for starting a business from the government is provided in the form of a loan with a very low interest rate - 0.69% per annum. The conditions of support differ significantly from standard market solutions, which is why we are dealing here with the so-called using de minimis.

The loan must be repaid in 84 months (7 years). The entrepreneur may apply for a grace period for repayment for a period of one year. The Support at Start program assumes that the maximum amount of support is PLN 70,000 - co-financing for companies is paid when the activity is already registered.

Subsidies for companies in the form of a loan to create a job for an unemployed person amount to max. PLN 20,000 and is awarded not earlier than after the first year of running the enterprise. Employment of an unemployed person referred by the district labor offices is associated with a great benefit - the young owner of the company may then apply for the remission of the remaining part of the loan. The conditions are regular loan installments and the existence of a created job for at least one year.

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Government funding for starting a business may be obtained by an entrepreneur if he issues a promissory note and obtains a surety of two natural persons. Certain cases may require the establishment of an additional form of collateral. Further conditions are to submit an application with an attached general business plan for the company.

Co-financing for companies - agreement between the ministry and BGK

The Startup Support program was established on the basis of an agreement concluded between the Ministry of Labor and Social Policy and Bank Gospodarstwa Krajowego. During the first stage, PLN 21.5 million was spent. The program manager is BGK, which appoints financial intermediaries that grant loans - commercial banks and loan funds. The role of intermediaries is to reach students and graduates who need funding to start a business. Their tasks also include servicing loans, monitoring repayments and collecting outstanding debts. Bank Gospodarstwa Krajowego supervises intermediaries, analyzes the performance of operations under the program, is responsible for reporting and cancels loans under certain conditions.