Applying for the Short-Term Enterprise Allowance

If you are unemployed and interested in setting up your own business, there is support available to help you to get started. The Short-Term Enterprise Allowance is one support that you might be eligible for.

What is the Short Term Enterprise Allowance?

The Short-Term Enterprise Allowance (STEA) is a financial support for unemployed people who want to start their own business. If your application for this support is approved, it replaces your Jobseeker’s Benefit payment.

How much is the Short-Term Enterprise Allowance?

The Short-Term Enterprise Allowance is paid at the same rate as your Jobseeker’s Benefit. The income that you earn from self-employment will not affect your payment on the Short Term Enterprise Allowance.

How long can I receive the Short-Term Enterprise Allowance?

You can receive the Short-Term Enterprise Allowance for the same amount of time that you are eligible for Jobseeker’s Benefit. The maximum amount of time that you can receive the payment is nine months.

Am I eligible for the Short-Term Enterprise Allowance?

In order to be eligible for the Short-Term Enterprise allowance, you must:

• Be receiving or eligible to receive Jobseeker’s Benefit or Jobseeker’s Benefit Self-Employed
• Have your business plan approved in advance in writing by a Case Officer at an Intreo Centre or Social Welfare Branch Office

Am I eligible for the Short-Term Enterprise Allowance if I have received a grant?

Employment grants from a Local Enterprise Office (LEO) or a local development company do not affect your entitlement to the Short-Term Enterprise Allowance.

Applying for the Short-Term Enterprise Allowance

If you think you are eligible for the Short-Term Enterprise Allowance and wish to apply, you will need to fill out some paperwork.

How can I apply for the Short-Term Enterprise Allowance?

To apply for the Short-Term Enterprise Allowance, you will need to get an STEA 1 application form from your local Intreo Centre.

The STEA 1 form asks you for your business proposal and how much it will cost to set up. Although this does not require a detailed business plan, it is a good idea to create one. This will help you explain your vision and show that you are passionate about starting a business. If you attended a Start Your Own Business course in the past, you can put that down on your application.

Once you have completed this form, you can return it to the Jobs Case Officer in your local Intreo Centre or Social Welfare Branch Office. The Case Officer will look at your business proposal and might talk to you and the Enterprise Officer in your Local Development Company about it.

If your application for Short-Term Enterprise Allowance is approved, you must register as self-employed with the Revenue Commissioners.

Refusal of the Short-Term Enterprise Allowance

The Short-Term Enterprise Allowance is a non-statutory scheme. This means that you cannot make an appeal if your application is not approved. You can ask the Department of Social Protection to review your application if you feel that you have been wrongly refused the allowance.

What other business supports can I receive while getting the Short-Term Enterprise Allowance?

If you are receiving the Short-Term Enterprise Allowance, 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 this grant if you have been approved for either the Short-Term Enterprise Allowance or the Back to Work Enterprise Allowance. Find out more about the Enterprise Support Grant.

What can I do when the Short-Term Enterprise Allowance ends?

If your entitlement to the Short-Term Enterprise Allowance ends and you are not fully self-employed by the business, you may be able to apply for a Jobseeker’s Allowance payment. You can continue to be self-employed while receiving a Jobseeker’s Allowance payment if you meet the means test and can show that you are also available for and seeking full-time employment.

Need more information?

We are here to answer your questions and talk through your options. Our online chat service is for 16 to 25 year olds and is available Monday to Friday, 4pm to 8pm. Chat to us now about your situation.

• Chat now to a trained Youth Information Officer
• Or leave us a message and we will email you back