Start-up business loans

This article is written according to the legal status current as of: 2021-01-22

It is a labour market instrument aimed at unemployed people interested in starting a business.

Who is eligible to receive the loan?

The loan may be granted to:

  • an unemployed person;
  • a job-seeking graduate of a school or university, within 48 of graduation or receiving a vocational title;
  • a final year student.

Additionally, in all of the above-mentioned cases, you should meet a list of obligatory requirements.
The loan may only be granted to a person who:

  • within 2 years directly preceding the day of submitting the application was not sentenced for any offences against public trade;
  • neither is employed nor performs any other paid work;
  • within 12 months directly preceding the day of submitting the application did not conduct any business activities.

The loan is granted on the basis of a contract and upon an interested person’s request, after submitting to the competent labour office a description, estimate of costs and security for the loan repayment or return, that is a blank promissory note or guarantee given by two co-signors.

Why is it worth applying for?

The loan may be granted in the amount of 100% of the total cost of starting-up a business, however it cannot exceed 2 000% of the average monthly remuneration. It may also cover the costs of legal advice and training.

The repayment term cannot be longer than 7 years. Additionally, you can defer your repayment for up to 12 months.

Useful information

The loan is paid out in accordance with a schedule and after the registration of a business activity by the loanee.  

After 3 months of repayment you may apply for a loan for furnishing a workstand. If you benefited from the repayment deferral, the 3-month period starts with the commencement of repayment.

The minister competent for labour issues may write off the loan granted for furnishing a workstand together with the statutory interest, provided that you meet the following requirements:

  • maintain the workstand of a designated unemployed person for at least;
  • you do not have any repayment arrears as regards a loan for furnishing a workstand or a start-up business loan.

If you fail to run a business for at least 12 months or breach any other contract terms, you will be obliged the entire amount of the loan that is left to repay together with the statutory interest calculated from the day of receiving the loan within 6 months of receiving a notice.

Legal basis:
Act of 20 April 2004 on Employment Promotion and Labour Market Institutions (art. 66e-61x)

Development: Editorial team of Zielona Linia 

Remember! All the materials posted on the portal www.zielonalinia.gov.pl have been drawn up by the editorial group and are for your information. The editors have put a considerable effort to make the provided information accurate and reliable. However, the information does not constitute a binding interpretation of the law.