Short-Term Enterprise Allowance
The same rate as the Jobseeker's Benefit or Jobseeker's Pay-Related Benefit you are already getting, including increases for a qualified adult and children, for up to 9 months. It ends when your Jobseeker's Benefit entitlement would have ended, so either 9 months or 6. Unlike the Back to Work Enterprise Allowance it is taxable, though you pay no PRSI or Universal Social Charge on it.
Last checked September 2026
What it is
Keep an income at your Jobseeker's Benefit rate for up to 9 months while you start a business, for someone going self-employed or setting up as a sole trader from Jobseeker's Benefit or Jobseeker's Pay-Related Benefit. There is no means test and no minimum time you must have been on the payment. You have to apply before you start trading, not after. If you are on Jobseeker's Allowance instead, the Back to Work Enterprise Allowance is the one that fits. Apply on form STEA1 to an Employment Personal Adviser at your Intreo Centre or Social Welfare Branch Office, then register as self-employed with Revenue once you are accepted. Talking to the Local Development Company is advisable but not compulsory for this one, unlike the Back to Work Enterprise Allowance. Worth knowing: the published STEA1 form is a February 2021 edition and still refers only to Jobseeker's Benefit, so it has not caught up with Jobseeker's Pay-Related Benefit. The scheme is non-statutory, so a refusal cannot be appealed to the Social Welfare Appeals Office, but you can ask for a review in writing within 21 days.
Who can get it
- You have been awarded, or have an entitlement to, Jobseeker's Benefit or Jobseeker's Pay-Related Benefit. There is no minimum period you must have been getting it
- You applied BEFORE engaging in self-employment, and got a written recommendation from an Employment Personal Adviser in advance
- You are starting a genuinely new business and going at it full-time. Seasonal, temporary or part-time self-employment does not qualify
- You are not a qualified adult on somebody else's Jobseeker's Benefit claim, which does not meet the criteria
- If you are on Jobseeker's Pay-Related Benefit your rate steps down as it would have done anyway. The Department's own example: somebody on the maximum €450 a week who transfers after 13 weeks moves to €375 at week 14 and €300 at week 27.
- The Enterprise Support Grant goes with it, pro-rated to the length of your claim: up to €1,000 on a nine month one and €625 on a six month one.
- You keep secondary benefits you already had, such as a medical card, the Back to School Clothing and Footwear Allowance, Rent Supplement or a Diet Supplement. You do not get the Household Benefits Package or Free Travel while on Jobseeker's Benefit.
- A grant from a Local Enterprise Office or a local development company does not affect your entitlement.
- WHEN IT ENDS YOU DO NOT GO STRAIGHT BACK ON TO JOBSEEKER'S BENEFIT. You would have to apply for Jobseeker's Allowance, which is means-tested.
- It is not for a franchise, an already market-established brand, or a business bought, inherited or leased as a going concern. New taxi businesses are specifically not supported.
- You cannot take paid employment as an employee, full-time or part-time, while on it. Retained firefighters are the one exception.
- Five years have to pass before another claim, whether the new business is the same one or a different one.
How to apply
Applications go through DSP. The official page has the full eligibility rules and the application itself.
Go to the official page →Checked against the official source on 12 September 2026. Always confirm the details on the official page before applying.
Questions people ask
How much is the Short-Term Enterprise Allowance?
The same rate as the Jobseeker's Benefit or Jobseeker's Pay-Related Benefit you are already getting, including increases for a qualified adult and children, for up to 9 months. It is taxable, unlike the Back to Work Enterprise Allowance, but no PRSI or USC is charged.
How long do I have to be on Jobseeker's Benefit first?
There is no minimum period. You need to have been awarded it, or have an entitlement to it. The 9 and 6 month figures are how long the allowance runs, not a waiting time.
Can I apply after I have started the business?
No. The guidelines say you must have made the application before engaging in self-employment, and the service page says you need a written recommendation from an Employment Personal Adviser in advance of commencing.
What happens when the 9 months are up?
The payment stops and you do not immediately requalify for Jobseeker's Benefit. If the business has not worked out you would have to apply for Jobseeker's Allowance, which is means-tested.
Related guides
- Back to Work Enterprise Allowance
- Enterprise Support Grant
- Earned Income Credit
- ACORNS
- Green for Business (Green for Micro)
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