Loan for creating a job for the unemployed


A loan for creating a job for the unemployed is completely different from the one offered by the private company for the unemployed. We translate the rules for providing the former.

The loan for creating a job for an unemployed person currently amounts to a maximum of about USD 24,000 gross. It is six times the average salary. This is a low-interest rate (currently 0.44 percent per annum) that will have to be paid back within the agreed time, usually within 3 years, although it can be repaid faster.

Taken from life


For example, an entrepreneur wants to take out a loan of USD 12,000 for the aforementioned 3 years. The monthly installment was set at approximately USD 335 (it ranges from USD 337 to 333, depending on the monthly interest installment).

On preferential terms, the entrepreneur will have to donate a total of 12081 dollars, i.e. only 81 dollars more. When he declares that he will pay back the loan in a year and a half, he will take 12,000 and give back 12041. In the event he takes 24,000 for 3 years, he will have to repay USD 24,162.80.

Startup support


All this under the “First Business – Support at startup II” loan program. The money received must be used to create a job for the unemployed, including the unemployed directed by the labor office.

Entrepreneurs who cooperate with an intermediary can count on a loan. This means: they want to create a workplace and employ a person registered in the PUP. The regulations allow borrowing also to other interested parties. People who want to create a crèche or a children’s club can apply for such support.

This follows from the provisions on childcare for children up to 3 years old. Whoever runs a farm (meeting the provisions of the Agricultural Tax Act) also has a chance.

It’s the same as someone who specializes in a given agricultural industry, and therefore runs a so-called special department of agricultural production (this is stated in the provisions of the Personal Income Tax Act and the Corporate Income Tax Act). There is a condition, however: for the last six months such a person has had to employ at least one full-time employee.

Conditions for the applicant


If you are willing to borrow from an intermediary, you must meet other points of the contract. He must not be in arrears with the repayment of the loan installments he had previously taken to open and run the business.

He must regularly pay social security contributions, health insurance, Labor Fund, Guaranteed Employee Benefits Fund. Next criterion: the applicant cannot have a criminal record. That is: in the past two years he could not be convicted of offenses against economic transactions.

You can submit as many applications as you want to employ people. When submitting the application, please provide completed loan application form and cost estimate, i.e. a plan of expenses incurred to create a specific job. The form of collateral for the repayment of the amount claimed is also important. The borrower’s own promissory note or surety of a natural person is preferred.