Introduction
The Short-Term Enterprise Allowance (STEA) gives support to people who have
lost their job and want to start their own business.
To qualify you must be getting Jobseeker’s Benefit. There is no qualifying
period, which means you do not need to have been getting Jobseeker’s Benefit
for a certain period of time. However, you will not qualify if you are getting
Jobseeker’s Benefit and working part-time.
The Short-Term Enterprise Allowance is paid instead of your Jobseeker’s
Benefit for a maximum of 9 months. It ends when your entitlement to Jobseeker's
Benefit ends (that is at either 9 or 6 months).
Rules
To qualify for the Short-Term Enterprise Allowance you must be getting or
have an entitlement to Jobseeker’s
Benefit.
Your business plan must be approved in advance in writing by a Case Officer
based in an Intreo Centre or a social welfare local office or an Enterprise
Officer in your local development company (also known as partnership company)
(see 'How to apply' below).
Seasonal, temporary or part time self-employment does not qualify for the
STEA.
You must contact the Department of Employment Affairs and Social Protection 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. However, you can apply for Jobseeker’s
Allowance, which is a means-tested payment.
Employment grants
Employment grants from a Local Enterprise Office (LEO) or a local
development company do not affect your entitlement to the Short-Term Enterprise
Allowance.
Help with starting a business
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). (The ESG
replaced the Technical Assistance and Training Scheme.)
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 €937 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).
Eligible items for grant support include:
| Category |
Annual limit, € |
Minimum contribution from applicant |
| Accountancy and related services including legal advice |
Up to €500 |
20% |
| Advertising and marketing aids |
Up to €500 |
20% |
| Business equipment |
Up to €1,000 |
20% |
| Business mentoring (this can be offered free or at a reduced rate by
Local Enterprise Officers (LEOs) or local development companies |
Up to €250 |
20% |
| Business registration costs and fees |
Up to €250 |
20% |
| Compliance, guidance and training |
Up to €250 |
20% |
| Job-specific tools and equipment |
Up to €1,000 |
20% |
| Office supplies and stationery |
Up to €250 |
20% |
| Personal protective clothing and equipment |
Up to €250 |
20% |
| Public Liability Insurance costs associated with setting up a
business - no other insurance is eligible |
Up to €1,000 |
20% |
| Short-term training on book-keeping, regulation, rollout of business
plan, start-your-own-business and courses of training related to the
start-up |
Up to €250 |
20% |
| Signage |
Up to €500 |
20% |
| Upgrading to premises where the premises is owned by the
applicant |
Up to €1,000 |
20% |
| Website registration, related services and production |
Up to €500 |
20% |
| Combination of above in any 24-month period (for long-term
BTWEA only) |
€2,500 |
|
| Note that the ESG is paid to people getting the STEA on a
pro-rata basis. A maximum of €937 can be paid to
people on a 9-month STEA and a maximum of €625 to
people on a 6-month STEA. |
Note that you do not have an automatic right to any of these amounts. The
Department of Employment Affairs and Social Protection's Case Officer 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
You can get more information about becoming
self-employed and setting
up a business.
Rates
If you qualify, the Short-Term Enterprise Allowance replaces your
Jobseeker’s Benefit. The STEA will be paid at the same rate as your
Jobseeker’s Benefit, including any increases for adult and child dependants.
It ends when your entitlement to Jobseeker's Benefit 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. (Note that this is different
from the Back to Work
Enterprise Allowance which is not taxable). You may qualify for Start
Your Own Business Relief which provides a two-year exemption from income
tax (up to a maximum of €40,000 each year) for people who have been
unemployed for at least 12 months before starting their own business. It runs
from 25 October 2013 to 31 December 2018. (However if you started to get the
STEA before 25 October 2013 you do not qualify for the relief because you had
already started your business before the start date for the scheme.)
Extra benefits
You can keep any extra (or secondary benefits) that you were
getting with your Jobseeker’s Benefit 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
Accomodation 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
of Employment Affairs and Social Protection's representative (formerly known as the Community Welfare
Officer) in your local health
centre.
How to apply
To apply for the Short-Term Enterprise Allowance, complete application form STEA 1 (pdf).
If you live in an area covered by a local development company (LDC) you
should return form STEA 1 to the Enterprise Officer. If you do not live in a
LDC area, you should return form STEA 1 to the Case Officer in your local
Intreo centre or social welfare local office.
The Enterprise Officer or Case Officer will look at your business proposal
and may discuss certain aspects of it with you. You must not take up
self-employment until you get written approval from the LDC or Department of
Employment Affairs and Social Protection.
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.