Support in the start, or how to get additional funds?

Setting up and running a business may seem like a real challenge for high school and university graduates finishing their education. The decisive condition for starting a business is the initial capital, the amount of which depends on the specificity and nature of the business to be undertaken. In order to meet the needs of future entrepreneurs, the Ministry of Family, Labor and Social Policy has created the "First Business - Support in Start" program, under which it offers low-interest loans for starting your own business. It is worth checking who and on what terms can get them!

Startup support - program characteristics

In order to develop entrepreneurship in Poland and to fight unemployment (by creating new jobs for the unemployed), the Ministry of Family, Labor and Social Policy has created the "First Business - Support in Start" program. Program participants may receive a low-interest loan to start a business or, in the case of an existing one, to create a new job for an unemployed person. The program can be used by residents of all voivodeships. The funds granted come from the Labor Fund, while the program is implemented by Bank Gospodarstwa Krajowego. The total value of the loan granted may not exceed:

• for starting a business: 20 times the average wage referred to in art. 2 clause 1 point 28 of the Act on promotion of employment and labor market institutions and is granted for a period of 7 years;

• for the creation of a job: 6 times the average salary referred to in art. 2 clause 1 point 28 of the Act on employment promotion and labor market institutions and is granted for a period of 3 years.

With regard to the borrowers who set up a business under the program and additionally create new jobs for the unemployed, the loan repayment period is 7 years in total (the grace period is not added up).

People who want to take advantage of the "First business - Startup support" program can count on support and professional advice (in the form of training) throughout the process of submitting and considering the application and already at the stage of setting up and running a business (after granting a loan), in the field of running a business , settlements and tax regulations. Due to the preferential nature of the support provided, it constitutes de minimis aid.

Who can benefit from the "First Business - Startup Support" program?

The addressees of the program, in the part concerning setting up a business, are non-working people, registered as unemployed, graduates of universities and other universities (up to 4 years from the date of graduation or obtaining a professional title), not performing gainful employment, also students of the last years of studies.

The loan offer in the field of creating new jobs for the unemployed is addressed to people using the loan to start a business (at least after 3 months of repayment of capital and interest installments) or entities conducting business activity, in particular dealing with agricultural production, running nurseries and clubs children and private schools and kindergartens.

According to the draft amendment to the Act on the promotion of employment and labor market institutions, the planned entry into force of which is on June 14, 2019, also members of families caring for children with a disability certificate or disabled persons with a significant degree of disability, looking for a loan, will be able to apply for a loan. work. On the other hand, the loan for the creation of a new job will also be available to entities providing rehabilitation services that will create a job directly related to the provision of rehabilitation services, stationary or mobile, for disabled children in their place of residence.

The loan for starting a business may also be used by people who previously conducted such activity, which was closed at least 12 months before submitting the application for its granting.

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How do I get a loan?

The procedure for obtaining funds from the "First Business - Startup Support" program is not complicated. The process itself has been reduced to the required minimum, so that people willing to have an easy and transparent view of the terms of the loan, the repayment procedure and its settlement.

The loan granting process is as follows:

1. To obtain a loan, you must apply for it to a specific financial intermediary appropriate for the place of business operating under the project.

2. After 14 days from submitting the application, the financial intermediary issues a decision in the form of a letter.

3. In the event of a positive decision, the borrower is obliged to set up a business (in the case of a loan for starting a business).

4. After this is done, a loan agreement is signed with a financial intermediary.

5. The borrower provides security for the loan repayment.

6. The requested amount is paid to the borrower's account.

7. In accordance with the schedule indicated in the application, the borrower disburses the funds received.

8. The loan is settled on the basis of bills, invoices or other accounting documents.

People who use the loan to start a business, which will additionally create new jobs for unemployed persons referred by the poviat labor office and will maintain these positions for at least a year and are not in arrears with repayment of loan installments for the creation of a job for an unemployed person referred by PUP and a loan to start a business, they will additionally be able to count on the cancellation of the loan received for the creation of a new job.

It is worth pointing out that the value of the loan received for starting a business can be multiplied. For example, unemployed people who want to set up a company, submitting applications under the "First business - support in start" program, after meeting the above conditions, will individually receive an amount equal to even 20 times the average remuneration referred to in Art. 2 clause 1 point 28 of the Act on the promotion of employment and labor market institutions - the amount may even exceed PLN 90,000. zloty. Thus, in the case of at least 2 people, the amount granted to start a business may total over PLN 180,000. zloty.

The loan granted under the "Support in start" program has a fixed interest rate of 0.25 annually of the rediscount rate for bills of exchange accepted by the NBP (it determines the price at which commercial bills of exchange are accepted by NBP). On the other hand, a loan for starting a business - nurseries or children's clubs with integration places or consisting in the provision of rehabilitation services for disabled children in their place of residence (also for job-seekers of disabled people) has a fixed interest rate, which is 0.1 rediscount rate per annum. bills of exchange accepted by the NBP. Comparatively, the interest rate on a commercial loan can vary between 5-10% per annum.

The offer presented by the Ministry of Family, Labor and Social Policy is a very attractive alternative, especially for people with little or no initial capital. Its attractiveness is also evidenced by the fact that the borrower, in connection with receiving the loan, does not bear the costs of commissions and fees associated with granting it, not only at the beginning, but also throughout the financing period. Therefore, people considering starting their own business may think about the source of financing under a low-interest loan.