AVGS Requirements: Who Is Eligible for the Voucher?

The AVGS requirements for founding coaching are generally met by three groups: recipients of unemployment insurance (ALG I), recipients of basic income support (Grundsicherungsgeld; until June 2026: Bürgergeld) under SGB II (Social Code II), and persons who are directly threatened by unemployment. The approval of the AVGS (Activation and Placement Voucher) is at the discretion of the responsible employment agency or job center under Section 45 SGB III (Social Code III, Employment Promotion). So there is no automatic legal claim, but there are clear criteria that guide the decision.

Those who want to start a business while unemployed or receiving benefits often search in vain for a simple checklist. This is because the AVGS has slightly different requirements for different target groups. This article clarifies them.

No legal entitlement: The employment agency or job centre alone decides on the AVGS, at its own discretion.

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What Does “Eligibility” Mean for AVGS Anyway?

The term “eligibility” is often used imprecisely in everyday language. Legally, AVGS is a discretionary benefit under Section 45 SGB III. This means the employment agency or job center is not required to issue the voucher in every case where formal criteria are met. However, it can do so if the measure appears reasonable in the individual case.

In practice, this means for you: the personal requirements are the basis. The case worker decides on approval after the personal conversation, and there is no guarantee.

Group 1: Unemployment Insurance Recipients (ALG I)

Those who receive unemployment insurance (ALG I) are registered as unemployed with the employment agency and thus represent the classic target group for measures under Section 45 SGB III. For this group, the employment agency typically examines whether business formation is a realistic alternative to reintegration into regular employment.

Important points for ALG I recipients:

• Registration as unemployed must already have occurred before the voucher is requested.
• The case worker evaluates whether the planned self-employment can be seriously prepared; a rough business plan or at least a clear business idea helps in this conversation.
• The AVGS for founding coaching is distinct from the later promotion through the startup subsidy (Section 93 SGB III): the coaching prepares the founding, the startup subsidy secures the cost of living in the first months of self-employment afterward.

In nxt milestone’s consulting practice, it is often found that ALG I recipients approach the AVGS too late because they first attempt to develop a business plan independently and only seek support when they encounter difficulties. An earlier application typically provides more planning security.

Group 2: Basic Income Recipients (SGB II)

People receiving basic income support (Grundsicherungsgeld; until June 2026 the benefit was called Bürgergeld, before that Arbeitslosengeld II) can also take advantage of AVGS-funded founding coaching. For this group, the funding option is provided under Section 16 SGB II in conjunction with Section 45 SGB III; responsibility typically lies with the job center rather than the employment agency.

For basic income recipients, additional instruments may be considered, in particular the startup allowance (Einstiegsgeld) under Section 16b or Section 16c SGB II. It can be paid during the initial period of self-employment for up to 24 months in addition to basic income if this reduces or eliminates the need for assistance. AVGS coaching and the startup allowance thus complement each other: one prepares the founding, the other secures the initial phase.

Because with basic income, questions of the benefit household (family members whose income and assets are jointly considered in determining eligibility) and asset allocation may play a role, individual coordination with the responsible job center is particularly important here.

Group 3: Persons Threatened by Unemployment

The third target group is often overlooked: persons directly threatened by unemployment can also apply for an AVGS, even if they are currently still in employment. According to the Federal Employment Agency, someone is considered “threatened by unemployment” if, for example, they have received notice of termination, their employment relationship is coming to an end on a fixed date, or their company is affected by insolvency or job cuts, such that unemployment is likely to occur in the foreseeable future.

For this group, an early application can be particularly worthwhile: those who begin founding preparation during the notice period or remaining contract term lose less time after employment ends and can potentially transition directly to self-employment and the startup subsidy.

What Criteria Does the Case Worker Typically Review?

Regardless of the target group, the employment agency and job center typically look at similar substantive criteria before approving an AVGS for founding coaching:

• Plausibility of the business idea: It must be evident that the planned self-employment could fundamentally be viable; however, a completed business plan is not expected at this stage, as that is precisely what the coaching is for.
• Personal suitability: Professional qualifications, relevant experience, or at least a comprehensible motivation for the chosen field of business.
• Timing: The application must be submitted and approved before the coaching measure begins.
• Jurisdiction: ALG I cases are processed through the employment agency, basic income support cases through the job center, which can differ in processing methods and forms.

How Can You Reliably Determine If You Are Eligible?

The most reliable information always comes from your personal case worker at the employment agency or job center, as they know your individual situation and make the approval decision. There you can also find out which documents you need for the application.

Additionally, an initial, non-binding conversation with a provider of AVGS founding coaching can help clarify open questions. nxt milestone also offers a free initial consultation that checks whether the basic requirements are met.

FAQ on AVGS Requirements

Can I apply for AVGS even if I don’t have a concrete business idea yet?

A rough direction should be evident, but a finished plan is not necessary. The employment agency or job center wants to be able to assess whether business formation is a realistic option for you at all. The actual development of the idea into a complete business plan is precisely what the coaching itself is designed for.

Do I lose my eligibility if I apply for the AVGS only after the coaching has started?

Generally, yes. The approval of the voucher must occur before the measure begins. Anyone who has already started working with a coach or provider before the application was submitted or approved typically bears the risk of having to cover the costs themselves. Always clarify the application process first.

Is there a difference between AVGS for founding coaching and the startup subsidy?

Yes, these are two different services with different purposes. The AVGS (Section 45 SGB III) covers the consultation and preparation of the founding—that is, the business plan and financial plan. The startup subsidy (Section 93 SGB III) subsequently secures the cost of living for up to 15 months during the initial phase of self-employment. Both are conceptually built on each other but must be applied for separately.

What happens if my application is rejected?

A rejection is not automatically final. It is worthwhile to understand the stated rejection reasons and, where possible, refine your business idea or documentation accordingly before submitting a new application. A conversation with an experienced AVGS provider can help identify typical weaknesses beforehand.

Conclusion: Three Target Groups, One Common Path to Clarification

Whether you receive unemployment insurance, basic income, or face the threat of unemployment: in all three cases, the AVGS is fundamentally accessible, but the final decision lies at the discretion of the responsible authority. Submit the application on time, that is, before the measure begins.

Learn in a free initial consultation with nxt milestone whether AVGS startup coaching is an option for you and what your personal path to founding could look like. Coaching is in German and requires B2 level or above.