The state government is providing more funding for startup support. (Photo: © mariok/123RF.com)
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February 3, 2021
The North Rhine-Westphalia state government is continuing the Master Craftsmen's Start-up Bonus with improved funding conditions. The maximum grant is increasing from €7.500 to €10.500.
"Higher funding, simplified application process, expert advice." This is the slogan used by the North Rhine-Westphalia State Agency for Trade Promotion (LGH) to advertise the NRW Master Craftsman Start-Up Grant . With this grant, the state government supports the establishment and takeover of businesses by master craftsmen – participation in an existing or newly founded company with at least 50 percent of the subscribed capital is also eligible for funding. The Master Craftsman Start-Up Grant was introduced in 1995 and, according to the LGH, is one of the most successful instruments for start-up and labor market promotion in NRW, having supported over 18.000 new businesses in the skilled trades.
Advice at LGH Ralf Heitger
Phone: 0211/ 30108310
Email: heitger@lgh.de
Zejnulla Sinani
Phone: 0211/ 30108312
Email: sinani@lgh.de
On the LGH website for Master start-up bonus You can find application forms, checklists and information sheets for download. The state government has now set up the funding framework improved and represents more resources for start-up funding. It increases the non-repayable grant from the current maximum of 7.500 euros to up to 10.500 EuroThe minimum investment amount is now €12.000, rather than €15.000. This will be followed by a grant of €8.400. The government grants the maximum amount of funding for investments of €15.000 or more. In total, the state budget will allocate €12,000 to the project over the next three years. EUR 13,5 million ready for the auxiliary instrument.
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"With the revised bonus, we are making starting a business simpler and even more financially attractive , thus giving new impetus to start-ups in the skilled trades," says Minister of Economic Affairs Andreas Pinkwart (FDP). "I think that especially in this time of change due to the pandemic, but also major challenges such as digitalization and climate protection, we have many opportunities that can be particularly well utilized by the skilled trades." It remains unchanged that the granting of the bonus is linked to business start-up consulting from the relevant Chamber of Skilled Crafts. The application can be submitted after the consultation – the granting authority is the LGH (State Chamber of Skilled Crafts). A further requirement is the creation or safeguarding of jobs or apprenticeships.
"The master craftsman start-up bonus makes many business start-ups or takeovers in the skilled trades possible in the first place," explains Hans Hund , President of the West German Association of Chambers of Skilled Crafts . The funding not only preserves existing jobs and apprenticeships, but also creates new ones. "Therefore, we are very pleased that the Ministry of Economic Affairs is continuing the master craftsman start-up bonus and simultaneously further improving the funding conditions. Skilled trades have a future, and starting a business in the skilled trades is worthwhile – these are the strong messages of this bonus. The young master craftswomen and craftsmen have good economic prospects and are true role models. It's good that our state is actively supporting them in their first steps toward self-employment."
Information on funding and applicationWho is eligible to apply?
Eligible to apply are master craftsmen and women qualified under the Crafts Regulation Act (HWO). Funding is available for the first full-time self-employed person in the skilled trades in North Rhine-Westphalia. Previous secondary employment does not affect the funding. Journeymen and craftsmen in master craftsman graduating classes are also eligible to apply.
What requirements must be met?
The prerequisite is the establishment of an independent and sustainable full-time business in the North Rhine-Westphalian skilled trades sector. Funding is available for new business start-ups, takeovers of businesses, and active participation in an existing or newly founded business as a self-employed full-time business in the skilled trades sector. In the case of a new business start-up and active participation, at least one permanent full-time position subject to social insurance contributions or two part-time positions, each at 50 percent of full-time, must be created and filled for a total of at least twelve months. This requirement can also be met with a training position. The creation and filling of the position must take place within 24 months, and proof of the minimum number of months created must be provided within 36 months of the grant being approved. In the case of a business takeover, the existing jobs must be maintained at the previous level of employment for at least twelve months after the start of economic activity. When taking over a business with fewer than one job or training position, the provisions for new business start-ups apply accordingly.
How big is the promotion?
Funding is available for up to €10.500. This is project funding in the form of equity financing. 70 percent of eligible expenditures (investments and operating resources) up to a maximum of €15.000 are funded. The minimum investment volume of eligible expenditures is €12.000.
How does the application process work?
Applications for the Master Craftsman Start-up Bonus must be submitted to the relevant Chamber of Skilled Crafts after completing a business start-up consultation. The Chamber of Skilled Crafts confirms the economic viability and sustainability of the start-up project with a qualified funding vote and forwards the funding application to the granting authority (LGH). The administrative procedure begins upon receipt of the documents by the LGH.
What documents must be submitted?
In addition to the original, hand-signed application, a professional opinion from the Chamber of Skilled Crafts and a business plan must be submitted. This must include the following minimum content in a meaningful form: a CV, project description, investment planning, financing and liquidity planning, and a profitability and earnings forecast for the first three years. Furthermore, the overall financing of the project must be secured, and proof of qualification as a master craftsman (not required for applications from journeymen and journeywomen) must be provided. If you have received or applied for so-called de minimis aid, a corresponding declaration must be submitted. If you are not a citizen of a member state of the European Union (EU), the European Economic Area (EEA), or Switzerland, you must present a residence permit.
When will the funding be paid out?
The grant will be paid out if, within 12 months of the grant approval, proof of commencement of business activity and proof of expenditures (funds drawdown) are provided. The funds drawdown form and the receipt list are available for download on the LGH website. Expenses must be documented using a receipt list. In individual cases, original receipts and bank statements must be submitted for random checks. Cash expenditures are not accepted.
Source: LGH
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