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Short-Term Enterprise Allowance (STEA)
From Department of Social Protection
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The Short-Term Enterprise Allowance (STEA) supports you if you have lost your job and want to start your own business.
The Short-Term Enterprise Allowance is paid instead of your Jobseeker’s Benefit/Jobseekers Benefit Self-Employed for a maximum of 9 months. It ends when your entitlement to Jobseeker's Benefit/Jobseekers Benefit Self-Employed ends (that is, at either 9 or 6 months).
To qualify for the Short-Term Enterprise Allowance you must be getting, or have an entitlement to, Jobseeker's Benefit /Jobseeker's Benefit Self-Employed
The client must obtain written recommendation from the department's Employment Personal Adviser in advance of commencing self- employment.
Seasonal, temporary or part time self-employment does not qualify for the STEA.
You must contact the department immediately if your self-employment ends or you take up employment.
If you are unemployed when your entitlement to STEA ends you will not immediately re-qualify for Jobseeker’s Benefit/Jobseekers Benefit-Self Employed. However, you can apply for Jobseeker's Allowance which is a means-tested payment.
Employment grants from a Local Enterprise Office (LEO) or a local development company do not affect your entitlement to the Short-Term Enterprise Allowance.
In addition to income support (your weekly payment), you can also get financial support with the costs of setting up your business. These supports are provided under a scheme called the Enterprise Support Grant (ESG).
You can only get the ESG if you have been approved for either the Back to Work Enterprise Allowance or the Short-Term Enterprise Allowance. The business plan you submit as part of your application for the scheme must set out the rationale and requirement for financial support. The ESG is paid to people getting the STEA on a pro-rata basis - a maximum of €1000 can be paid to people on a 9-month STEA and a maximum of €625 to people on a 6-month STEA. You must be able to make a matching contribution of at least 20% to access grant support. You need to provide documentary evidence of the costs (quotations from at least 2 suppliers or, if a single supplier, the reasons for choosing a single supplier).
Click on the document below to see a table of Enterprise Support Grant items for STEA:
Short-Term Enterprise Allowance (STEA) Enterprise Support Grant Tables
Enterprise Support Grant tables for STEA. Jan 2021
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Note that you do not have an automatic right to any of these amounts. The department's Employment Personal Adviser will assess your application and eligibility.
Some items are not eligible for grant support under the ESG. These include:
- building/premises rental costs
- cost of travel
- insurance (except public liability)
- personal clothing and uniforms (except protective clothing)
- professional development programmes arranged by professional and regulatory bodies
- purchase of any type of vehicle
- stock-in-trade
- training or education other than that specified
- utility costs, connection or supply and local authority rates
If you qualify, the Short-Term Enterprise Allowance replaces your Jobseeker’s Benefit/Jobseekers Benefit-Self Employed. The STEA will be paid at the same rate as your qualifying payment, including any increases for adult and child dependants. It ends when your entitlement to Jobseeker's Benefit/Jobseekers Benefit-Self Employed ends. The STEA may be paid directly into your bank or building society account on a weekly basis. It cannot be paid into a mortgage account.
You do not pay PRSI or Universal Social Charge on the STEA. However the STEA is subject to income tax in the same way as Jobseeker’s Benefit/Jobseekers Benefit-Self Employed. (Note that this is different from the Back to Work Enterprise Allowance which is not taxable).
You can keep any extra (or secondary benefits) that you were getting with your qualifying payment provided you continue to satisfy the conditions. For example, a medical card and Back to School Clothing and Footwear Allowance.
However you must be deemed eligible for the Rental Accommodation Scheme to keep your Rent Supplement and an increase in your income may affect your Rent Supplement. To find out how your Rent Supplement may be affected contact the department's representative (formerly known as the Community Welfare Officer) in your local Intreo Centre.
To apply for the Short-Term Enterprise Allowance, complete the application form below:
Application Form: Short-term Enterprise Allowance (STEA1)
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An Employment Personal Adviser will conduct a brief initial assessment with the claimant to assess suitability for the STEA scheme in line with their progression plan. Where necessary the Employment Personal Adviser may need to consult with the Enterprise Officer in the LDC.
The Enterprise Officer will look at your business proposal and may discuss certain aspects of it with you.
Once recommended by the Employment Personal Adviser, the papers are forwarded to the Deciding Officer for decision.
If you are accepted on to the Short-Term Enterprise Allowance, you must register as self-employed with the Revenue Commissioners. You can find more information on self-employment from your local tax office.
Alternatively, you may be eligible for the Back to Work Enterprise Allowance (BTWEA). BTWEA is a non-statutory scheme designed to provide a monetary incentive for people who are in receipt of certain qualifying social welfare payments to develop a business while allowing them to retain a reducing proportion of their qualifying social welfare payment, plus secondary benefits in certain circumstances, over two years; 100% in year 1 and 75% in year 2 i.e. a total of 624 paid days. You can find more information on the Back to Work Enterprise Allowance at BTWEA .
Operational guidelines describe the processes and procedures that staff in the department follow when carrying out their work.