SIDBI INTRODUCE NEW SCHEMES TO ASSIST MSME LIQUIDITY NEEDS THROUGH MEDIATOR

In the duration of the Coronavirus pandemic and to assist COVID-19-affected enterprises. The RBI has given SIDBI (SLF-2) another liquidity facility of Rs.15000 crore to meet the MSME firm’s liquidity and credit needs. Special programs are being created to support MSMEs through banks, NBFCs, and MFIs to kick off the SLF-2. To ensure broader coverage, the Scheme to Assist MSME Liquidity Needs through Intermediaries would include all qualified firms with investment-grade ratings, regardless of the organization.

SPECIAL LIQUIDITY FACILITIES (SLF-1)

Last year, the RBI supplied SIDBI with a particular liquidity facility of Rs.15000 crore (SLF-1). As a result, the SIDBI has developed specific liquidity programs to assist MSME sectors that have been affected by the COVID-19 outbreak.

SPECIAL LIQUIDITY FACILITIES (SLF-2)

The SIDBI has announced the following special liquidity schemes as per the Scheme to help MSME sector liquidity needs through mediators for support to MSME sectors afflicted by the COVID-19 epidemic to operationalize the SLF-2:

  • Exceptional liquidity support for MSME through MFI(SLS-II-MFI 2021).
  • The Special refinance Scheme (SLS-II-SRS 2021).
  • NBFCs provide great liquidity support for MSME (SLS-II-NBFC 2021).

SPECIAL REFINANCE SCHEME (SLS-II-SRS)

The Scheme intends to offer qualifying PLIs with refinancing support to help them meet the liquidity needs of their Micro and Small Business end-borrowers.

The following are the qualifying criteria and other requirements for the Special Refinance Scheme 2021 for MSME Liquidity Support:

ELIGIBILITY FOR SCHEME

This plan is open to commercial banks (public, private, and foreign) and small finance banks (SFBs). SIDBI will provide support under the program to scheduled banks with large existing portfolios of MSEs/microcredit and sound financials who meet the following criteria:

Small Finance Bank

During the first three years, the SFB and the previous business preceding conversion to SFB (considered together) should have made a profit. The RBI has granted the SFB a final license to function as a Small Finance Bank, and it has begun operations. The SFB must adhere to the following Benchmarks requirements:

  • Non-performing assets (NPAs) must be equal to or greater than 7% of net capital.
  • The small finance bank’s net worth should be at least rupees 100 crores.
  • The small finance bank’s Capital to Risk(Calculated) Assets Ratio (CRAR) should be at least 15%.

Other Banks

The bank must have been in business for at least three years and profit in a minimum of two of the previous three financial years. The bank should follow the following guidelines, as per the certified financial statements:

  • The bank must have a minimum net value of Rs.50 crore.
  • The bank’s capital to risk-calculated assets ratio should not be just under 9%.
  • To be qualified for this plan, the bank’s total non-performing assets (NPAs) must not exceed 10% of its total assets.

SECURITY UNDER THIS SCHEME

This loan’s private security is centered on the Complete Consensus. The bank shall maintain in deposit for SIDBI all assets acquired directly or indirectly from MSME, including movable and immovable properties, book debts, receivables, executable claims, guarantees, assigns, transfer of funds, and other protections.

TENURE

  • The loan under the unique liquidity program must be returned within 12 months or by June 10, 20211, whichever comes first.
  • Under the SRS 2021, SIDBI will provide a 36-year repayment period for the loan, supplemented by SIDBI’s own money.

BENEFITS OF THE SCHEME

The plan is open to any organization that meets the definition of a micro or small business as defined by the Medium Enterprises Development Act of 2006 or the term specified in a GoI Gazette Notification. MSE end customer accounts up to SMA-1 type are qualified for refinancing under the scope of ECLGS 2.0 in the healthcare industry and 26 other higher stress areas. 

We at SDS Fin Advisory LLP are engaged in the field of Project Finance, MSME Loan, Working Capital, Unsecured loan, and Government Subsidy work for 20 years. We provide the best service with the most satisfactory result in a timely manner. We have more than 1000 happy clients. Feel free to contact us on 848596003 or info@sdsfin.in.

SIDBI’s NEW Scheme for MSME at attractive ROI of 6.00% to 8.00%.

The STHAPAN Scheme aims to promote capital investments in the MSME sector by assisting Greenfield Manufacturing units. It provides financial assistance by the way of term loan for plant & machinery, purchase of land, construction of factory building, purchase of equipment, Misc. fixed assets, installation of rooftop solar projects, etc. under the product linked incentive schemes. This scheme is valid up to 31st March 2022 and may be extended on a need basis.

Eligibility Criteria:

  • The main objective of STHAPAN is to provide financial assistance to Greenfield units for setting up new units.
  • The Promoters of the new entity should have 5 years of experience in the business. 

 

List of sectors under STHAPAN Scheme
Automobiles and Auto Components (excluding dealership but including general Engg.) Specialty Steel
White Goods (including ACs and LEDs) Textile Products: MMF Segment and technical textiles
High-efficiency solar PV modules Advanced Chemistry Cell (ACC) Battery
Drugs and Pharmaceuticals(including ingredients) Food Products
EV Charging Stations Medical devices
Healthcare Centers (including Hospitals, nursing homes, and diagnostic centers) Mobile Phone and accessories
Agri allied sectors Renewable sectors (including rooftop solar
Aerospace and defense Garmenting
Paper & Paper Products Rubber and Rubber Products
Plastic & Plastic products (excluding single-use plastic Chemical and Chemical Products
  • MSMEs projects other than the above-mentioned sectors may also be allowed to be covered under the scheme subject to in-principle approval from RO In-charge.  

Quantum of Assistance:

  • Term Loan up to Rs.1500 Lakh per unit/ borrower, subject to a maximum of 75% of the project cost.
  • Higher Term loan for plant & machinery, purchase of land and construction of the building, etc. up to Rs.2000 Lakh to one unit shall be subject in-principle approval as per Loan Policy.
  • Promoters have to contribute a minimum of 25% of the project cost.

Interest rate and Repayment:

  • Interest rate will be 6.00 % to 7.30 % p.a for the first year. From the next years, it will be as per internal rating.
  • Repayment up to 7 years including moratorium up to 2 Years.

Conclusion:

This scheme will boost capital investment in Greenfield manufacturing units.  Attractive rate of interest, term loan up to Rs. 2000.00 lakhs and quick sanctions are the main benefits under the scheme. MSME setting up their new units in identified sectors are benefited under this scheme.

If you need further clarification, we at SDS Fin Advisory LLP are engaged in the field of Project Finance, MSME Loan, Term loans, Machinery loans, Working Capital loans, unsecured loans, and Government Subsidy work for 20 years. We provide the best project finance consultancy services and MSME subsidy services in Ahmedabad with the most satisfactory result in a timely manner. We have more than 1000 happy clients. 

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SIDBI introduce NEW ARISE scheme for MSME at attractive ROI of 5.50 % to 8.00%

The scheme aims to provide financial Assistance by Term loan to the existing MSME units who want to undertake expansion/modernization/capital expenditure in the same line of business by way of purchase of land, construction of factory building, Purchase of equipment, Plant & Machinery and Misc. Fixed assets, Installation of Rooftop Solar Projects, Acquisitions of other energy efficiency devices. This scheme is valid up to 31st March 2022 and may be extended on a need basis.

 Eligible Criteria:-

  • Financial assistance shall be provided to Micro, small and medium enterprises engaged in high growth and priority sectors (including sunrise sector), thrust sectors for undertaking expansion/modernization/capital expenditure.
  • Brownfield enterprises having a minimum of 2 Years of operation and Audited accounts for at least two full years are eligible under the ARISE scheme.
  • There must be cash profits in the last audited financial results.

 

List of Eligible Sectors under ARISE scheme
Automobiles (excluding dealership) Automobile Components (include general Engg.) Medical Equipment, healthcare and hospitals, and Nursing homes and Diagnosting Centers
Chemicals and Chemical products Paper & Paper Products (include Printing) Renewable Energy including Rooftop solar Projects
Electronic systems Electrical Machinery Rubber and Plastic
Food Processing Textile and Garments Ceramics and Stone Processing
Iron and steel Drugs and Pharmaceuticals Biotechnology
Aerospace& Defence
  • MSME setting their projects other than the above-mentioned sectors may also allow being covered under the scheme subject to the approval of RO In- charge.

Quantum of Assistance:

  • Term loan up to Rs. 500 Lakh per borrower subject to a maximum of 80 % of the project cost shall be allowed.
  • For smaller loans up to Rs. 3 crore for machinery/ equipment finance, 100% of the project cost shall be allowed.
  • Higher term loan for plant & machinery, purchase of land, construction of factory building, etc. up to Rs. 700 lakh to one borrower can be allowed subject to the approval of RO In-charge.
  • Promoters have to contribute a minimum of 20% of the project cost. In case of loans up to Rs. 3 crore on machinery/equipment where 100% financing is proposed, cash collateral up to 25% of project cost on the lines of SPEED scheme shall be applicable.

 Interest rate and Repayment: 

  • Interest rate will be 5.50 % to 6.80 % p.a for the first year. From the next years, it will be as per internal rating.
  • Repayment up to 7 years including moratorium up to 2 Years.

Conclusion:

This scheme is to promote existing MSME engaged in high growth and priority sectors for undertaking Expansion/modernization projects.  The main benefits of the schemes are attractive ROI, 80% finance of project cost, maximum subsidy benefit, lowest security requirement, and quick sanction. MSME who wants machinery finance for their expansion project can avail 100% financing up to Rs. 3.00 Crore with an attractive rate of interest.           

We at SDS Fin Advisory LLP, the best Project finance consultant in Ahmedabad are engaged in the field of Project Finance, MSME loans, Term loans, Machinery Loans, Working Capital loans, unsecured loans, and Government Subsidy work for 20 years. We provide the best service with the most satisfactory result in a timely manner. We have more than 1000 happy clients. 

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SIDBI INITIATED A NBFC-BASED SPECIAL LIQUIDITY SUPPORT PROGRAM FOR MSME (SLS II-NBFC 2021)

NBFCs provide liquidity help to Micro and Small Enterprises (MSEs) affected by the Covid-19 epidemic. In addition, the initiative will give the NBFCs assets to support operational continuity and promote onward lending to small and medium-sized businesses.

Goal of The Scheme

The scheme aims to give liquidity assistance to MSMEs affected by Covid-19 through non-banking investment firms, especially fintech NBFCs. The unique program will provide NBFCs with term loans to ensure operational continuity and advance onward funding to MSME (Micro, Small, and Medium Enterprises).

ELIGIBILITY CRITERIA

NBFC must be recognized by the RBI as an Investment and Credit Company (ICC) to be accepted for this program.

  • An NBFC can make term loans through a particular liquidity program if it has been in the company for three years and has three years of balance sheets.
  • To be qualified for the plan, non-banking financial companies must have a net-owned fund of Rs.50 crore and a minimum value of assets of Rs.200 crore.
  • The financial institution must have a BBB or higher external ratings (as of March 31, 2020).
  • The NBFC must adhere to all applicable regulatory regulations.
  • According to the Bank’s internal guidelines, the NBFC must pass the Go/No Go Guidelines.

BENEFITS

The plan is open to any organization that meets the definition of a micro or small business as defined by the Medium Enterprises Development Act of 2006 or the term specified in a GoI Gazette Notification.

TENOR

After one year from the time of drawl or June 10, 2022, whichever comes first, the SLS loan must be returned in bullet installments.

SECURITY

The program provides need-based security as per the Bank’s current policies.

PROCESSING FEE

The MSME must pay 0.10 percent of the authorized amount, up to a maximum of Rs.5 lakh, plus GST if required.

ABOUT APPLICATION FORM

Mail attached copies of the duly signed registration form, certificates, and papers to rbisls2_nbfc@sidbi.in.

DOCUMENT

For the SLS program, the following documents are required:

  • Information about the company’s promoters and directors.
  • Issues of the Parent or Holding/Subsidiary/Associate
  • As of March 31, 2021, the Consumer’s and Parent/holding Company’s shareholding patterns are detailed.
  • Beneficiary ownership statement.
  • A full specification of the most recent Memorandum and Articles of Association is necessary for addition to the organization certificate.
  • A legal document of the RBI’s Certificate of Registration
  • Annual Reports from the previous three years
  • Declaratory statement on banking services
  • The most recent Asset Liability Maturity Profile has been lodged with the RBI.
  • The RBI has received the most recent certified returns.
  • Copy of legal documents like passport and PAN CARD of the promoters/directors and permitted signatories of the firm.
  • Each director must sign an assurance giving his or her agreement to examine the CIBIL database and the credit reports included in Annexure-V.
  • If personal guarantees are given, the guarantor’s most recent CA verified net worth statements are required.
  • Reasons for the most recent rating

FEW MORE DETAILS

NBFCs that finance two-wheeler loans and cannot provide proof of MSE status and NBFCs with a dominant portfolio of gold loans will not be eligible for the plan.

CONCLUSION

The program would provide time loans to banks, NBFCs, and MFIs to maintain system continuity and promote forward lending to MSMEs, according to Sidbi. The loans will be for 90 days. SIDBI is dedicated to assisting MSMEs in surviving the crisis caused by the Covid-19 epidemic. The money will be distributed to qualifying MSMEs through banks, NBFCs, and MFIs. They anticipate that MSMEs’ financial problems will be addressed quickly and adequately by doing so.

We at SDS Fin Advisory LLP are engaged in the field of Project Finance, MSME Loan, Working Capital, Unsecured loan, and Government Subsidy work for 20 years. If you are looking for financial assistance in terms of machinery loan, Term loan, Cash Credit, Export finance, Capital Subsidy, interest subsidy, we are always ready to give you the best guidance and assistance. Feel free to contact us on 848596003 or info@sdsfin.in.

Gujarat Industrial Policy: Scheme to Award MSMEs

Several small businesses are getting benefits from the latest industrial policy published by the Gujarat government. Several incentives and subsidies are supporting businesses to invest more in the manufacturing and other operations of the business. Several talukas have multiple benefits where the business owners get direct benefits. The industrial policy shared by the Gujarat government promotes businesses on a global level and stimulates sustainable development. The government has decided to provide direct benefits to the MSMEs and increase the shares of state GDP. 

The current industrialization policy is so beneficial for the business owners that can enhance the revenue of the business on a global scale. Recently the Gujarat government is thinking to increase the MSME business by introducing an MSME award for the business. It will strengthen the micro, small, and medium enterprises and their manufacturing will get an instant boost. The government will analyze the quality, production, innovation, and employment to award the MSMEs that will motivate them to increase production on a global level. 

For startups, the government has introduced the best MSME startup program under the industrial policy in 2020. The startups will also get several benefits in the schemes, and their modal will be appreciated on an international level.

The Gujarat government has introduced the “scheme for awards to MSMEs” with the latest industrial policy.

  • The name of the scheme is given as “Scheme for Awards to MSMEs” by the government. 
  • The scheme is for five years from the date of commencement, i.e., 07/08/2020. The businesses will get benefits till 2025.

Now let’s check what type of industries can take benefit of the schemes and understand them properly.

Micro, Small and Medium Enterprises- The business should follow the regulations set by the government for Micro, small, and medium enterprises according to the definition given in the MSME development act 2007. The business should register with Udhyog Aadhar Memorandum or Udyam registration.

Eligible Business- 

  • The business should be operable for at least three years, and continuous production or supply should be active from these three years. 
  • The businesses should have all the clearances to perform the business, and all the applicable licenses should be there. 

State awards for Best MSME

  • Different awards for micro, small and medium enterprises-  
  • There are three awards in each category for MSMEs. 
    • Hike in production and profit.
    • All the measures are there to prove the quality and not affecting the environment.
    • Technological advancement and innovations.
  • There is prize money of 2 lakhs for the winners that will strengthen their business. Also, they will get an appreciation letter from the government with a trophy. 

Awards for Commercial startups MSMEs

The winner will get the prize money of 2 lakh rupees, a trophy, and the appreciation letter. 

What will be the procedure of the scheme?

There are several things the government will introduce every year.

  • The MSME commissioner will offer schemes through local newspaper advertising every year. The awards groups will be notified by the widely spread advertising media and newspapers. 
  • The MSME commissioner will release the application and procedure for these schemes, and businesses can check these out while registering their business. 
  • There will be the constitution of a committee that will check the procedures and applications of the business. 
  • After the registration, the selected businesses will be announced by the MSME commissioner. 

The MSME startup will get only one award in each category; there are not several awards for the startups in the industrial policy 2020.

Who will sanction the budget?

The government has decided on a budget head to sanction the amount of the schemes. The budget head will grant the amount to the commissioner.

We at SDS Fin Advisory LLP are engaged in the field of Project Finance, MSME Loan, Working Capital, Unsecured loan and Government Subsidy work since 20 years. We provide best service with most satisfactory result in timely manner. We have more than 1000 happy clients. Feel free to contact us on 848596003 or info@sdsfin.in.

SIDBI INITIATED SHWAS AND AROG SCHEMES UNDER THIS PANDEMIC TIME

  • SIDBI has launched two loan programs for micro, small, and medium-sized enterprises (MSMEs) to assist them with the required financial support in the battle against the COVID-19 outbreak. Thanks to these two new fast credit distribution schemes, MSMEs will access financing for manufacturing and services related to the procurement of oxygen tanks, oxygen concentrators, oximeters, and critical medicines.
  • SIDBI is implementing these new programs to help MSMEs swiftly developing their facilities, which will help the country tackle the disease.

The two new loan programs:-

  1. AROG:- MSMEs that manufacture pulse oximeters, approved medications, ventilators, and personal protective equipment will be eligible for this funding.
  2. SHWAS:- This program will provide funding to MSMEs that manufacture oxygen cylinders, oxygen generators, oxygen concentrators, and liquid oxygen and offer transportation facilities, storage, and refilling facilities for these products.
  • The programs were developed with the support of the Government of India (GoI), and they make it easier to finance the manufacture and delivery.

Eligibility Criteria for AROG (ASSISTANCE TO MSMES FOR RECOVERY & ORGANIC GROWTH)

  • In the most recent audited financial statements, existing customers – cash benefit (i.e., FY 2020).
  • In the last two years, additional SIDBI customers have resulted in a cash profit.
  • Exceptional Credit history with current bankers and financial institutions (FIs).

Eligibility Criteria for SHWAS (SIDBI ASSISTANCE TO HEALTHCARE SECTOR IN WAR AGAINST the SECOND WAVE)

  • Existing Customers – Benefit in cash in the most recent audit reports financial statements (i.e., FY 2020)
  • In the last two years, SIDBI has added new clients, resulting in a cash profit.
  • It is essential to have a credit record with a present banker / financial firm.

Amount Of Loan And Interest Rate For AROG:-

  • Term loan for the buying of machinery or equipment
  • Capital Expenditure is a term used to describe the amount Purchase of raw resources or fulfillment of verified orders with a term loan
  • A maximum loan of 2 crore
  • Return on investment 5.5% to 6% per annum

Amount of Loan and Interest Rate for SHWAS:-

  • Term loan for the buying of machinery or equipment
  • Working Capital is a term used to describe the amount Buy of raw resources or fulfillment of verified orders with a term loan a maximum loan of 2 crore
  • Return on investment 4.5% to 5% per annum
Some Extra Features:-
  • Time of repayment Term Loans is available for up to 60 months. WCTL – For a period of up to 18 months
  • A twelve-month moratorium is added.
Documents for Both Schemes:-
  • Documentation for an easy loan
  • To acquire supplies, machines, MFAs, and raw materials, the balance is paid directly to the provider.
Application:-
  • The application is just one page long.
  • Proper research and standard KYC scans.
  • After receiving the mandatory details, the sanction is issued within 48 hours.
Attractive Part of AROG Scheme:-
  • Financing is available up to 100%.
  • Choice with very low collateral.
  • There is no payment charge.
  • Desirable interest Rates.
  • Loan Assurance is also a choice (Charges to be borne by SIDBI).
Attractive Part of SHWAS Scheme:-
  • Financing is available up to 100%.
  • There is no payment charge.
  • Desirable interest Rates.
  • Credit Assurance is also a choice (Charges to be borne by SIDBI).

Official Announcement for Schemes:-

“The Endeavour is to provide financial services to respectable MSMEs that have grown to the opportunity in protecting the people in this time of need by holding their operations operational and providing medical care at all stages,” stated SIDBI Chairman and Managing Director on this subject.

Given the ongoing harm caused by a corona virus and the fact that it is a national emergency, SIDBI has developed these schemes to aid medical professionals in their battle against the deadly virus.

If you are planning to loan and subsidy, you are on the right page. We are engaged since last 20 years in the field of Project Finance, MSME Loan, Working Capital, Unsecured loan and Government Subsidy work. We provide best service with most satisfactory result in timely manner. We have more than 1000 satisfied customers.

We at SDS Fin Advisory LLP are engaged in the field of Project Finance, MSME Loan, Working Capital, Unsecured loan and Government Subsidy work since 20 years. If you are looking for financial assistance in terms of machinery loan, Term loan, Cash Credit, Export finance, Capital Subsidy, interest subsidy, we are always ready to give you best guidance and assistance. Feel free to contact us on 848596003 or info@sdsfin.in.

SIDBI LOAN SCHEME UNDER COVID-19

SIDBI LOAN SCHEME UNDER COVID-19

SIDBI, India’s Small Industries Development Bank, has launched financial schemes for those engaged in producing medical products or services linked to Covid-19, stepping up the fight against Corona virus and supporting Micro and Small Businesses (MSEs) in tackling the present situation. The SIDBI Assistance to Facilitate Emergency (SAFE) answer against the corona virus scheme, which offers loans of up to Rs 50 lakh, focuses on helping certain MSEs start tasks that will help fight the pandemic. It could also help them purchase production machinery, raw materials, and consumables.

Role of the SAFE scheme

MSEs Make hand sanitizers, gloves, masks, headgear, safety gowns, aprons, bodysuits, ventilators, goggles, laboratories, and other products with a direct connection to Covid-19 may apply for a loan of up to Rs 50 lakh.
A 5% annual interest rate will be charged for a cumulative loan repayment period of 5 years.
Customers from both SIDBI and non-SIDBI will apply.
No prepayment or processing fees.

Another program, SAFE Plus, has been developed to meet additional working capital requirements by the government orders connected to the virus’s war.

Some features of the SAFE Plus scheme

SIDBI is responsible for the credit information costs.
Non-SIDBI customers must have a cash surplus in the previous year’s financial statements and an account not in the SMA 1/ 2 band.
Open to all MSMEs, are current SIDBI clients or fresh ones with clear orders from state government officials.
Escrow or Guardianship in support of SIDBI can be used as protection for non-SIDBI customers.
The amount owed is Rupees 100lakh, with an annualized rate of 5%.

SIDBI’s smile scheme

The scheme’s aim will provide MSMEs with soft loans, such as quasi-equity and term loans, on reasonably favorable terms to meet the necessary total debt for both starting a business and expanding an existing one.

The specially designed scheme provides various benefits to help the cash-strapped Indian MSME market, which is currently going through a difficult period.
Reasonable interest rates, soft loan financing of part promoter involvement, longer maturity duration, and speedy dispensation are just a few of the program’s highlights.

Eligibility Criteria

As per SIDBI, the scheme focuses on supporting new businesses in both the industrial and service sectors. Furthermore, while short listing companies, the focus is on funding small businesses in the MSME sector.
Current and new SIDBI customers are eligible for the program.
Existing businesses expanding to take advantage of new opportunities and pursuing modernization, technological upgrades, or other projects that will help them develop their business are included.
There is also a focus on the twenty-five listed Make in India industries. Additionally, eligible proposals from any other field can be considered on a case-by-case basis, based on their merits.

Offers under This Scheme

A minimal Loan Amount of Rs 10,00000 for the verified account and Rs 25,00000 lakh for other applications is available under the scheme. There is also a long payback period of up to ten years, with a 36-month suspension. Some of the program’s other highlights are mentioned below;
The loans provided under the program cannot be used to repay previous loans.
The policy also needs a minimum of 15% supporter investment with a maximum DER of 3:1.
Rates of interest begin at 8.36 percent* and go up from there (subject to change).

Conclusion

SIDBI(sidbi loans for startups) has established a new funding window (as part of its current Smile Scheme) that offers near/long loans at competitive rates. These loans are intended to help the healthcare industry, such as hospitals, nursing homes, and clinics, meet their coronavirus-fighting needs. Loans are provided out at a low-interest rate of 5% within 48 hours as per the schemes.

We at

SDS Fin Advisory LLP

are engaged in the field of Project Finance, MSME Loan, Working Capital, Unsecured loan and Government Subsidy work since 20 years. If you need any assistance kindly contact us on 848596003 or info@sdsfin.in.

Sidbi startup loan

NEW SCHEME FROM SIDBI UNDER COVID-19

NEW SCHEME FROM SIDBI UNDER COVID-19

Covid Startup Assistance Scheme (Sidbi Startup Loan):-

Startups are typically resource-constrained because they’re young, dynamic, and inventive. With the COVID-19 outbreak, which has caused lockdowns, startup founders must find new ways to work for their companies. They need to meet their capital needs while still planning for potential expansion. The tiny Industries Development Bank of India recognizes the operating and economic difficulties that businesses face and has been working to supply financial help and stability to them via schemes a bit like the COVID-19 Startup Assistance Scheme (‘CSAS’) (Sidbi Startup Loan). This program would help create startups that have demonstrated their ability to regulate the economic effects of Covid-19 while also ensuring the protection and financial security of their employees. SIDBI (Sidbi Startup Loan) doesn’t provide credit to businesses and instead focuses on equity and fund infusion.

SIDBI Scheme and Process:-

The CSAS program helps startups that will directly take advantage of the program. This program aims to supply businesses with fast capital expenditures within the next 45 to 90 days. As a result, various Committees of 5 members (3 from SIDBI and its candidates and a couple from the Wealth Management industry) will be formed to expedite the method. The processing charge is 1% of the sanctioned amount.
New businesses can get a loan of up to INR 2 crore via this program. The application will be screened using the following procedure:

⦁ On the SIDBI Scheme portal, the scheme document will be open.
⦁ On the SIDBI Scheme portal, an application called Credit Appraisal Memo (CAM) and a Self-Assessment Tool (SAT) will be made available.
⦁ Within 30 days of the scheme’s launch, startups must complete the CAM, SAT and email the documents to a given email address (csas@sidbi.in).
⦁ The Recommendation Committee will conduct a credit review and a video conference with the startup and the VC investor.
⦁ Following that, SIDBI’s planned Internal Credit Committee (ICC) will regularly approve loans to businesses. Businesses and VC investors may be asked to participate in a video chat conference during the ICC conferences.
⦁ Acceptance or denial status will be shared in the mail on the same day.
⦁ The part of Loan Agreements and supporting documents will be entirely digital.

Eligibility Criteria:-

⦁ Startups identified by the government have earned funding from at least one of the Alternate Investment Funds listed with the government SEBI (Securities and Exchange Commission) (Sidbi Startup Loan).
⦁ The unit economics of a startup should be optimistic.
⦁ The business should’ve been in existence for no more than ten years.
⦁ Startups with a minimum of 50 workers are eligible. This could include the troops on the ground.
⦁ Business must have a good attitude—estimated Career Earnings.
⦁ Business with projected revenue of Rs 10 crore to Rs 60 crore in FY 2019 and FY 2020.
⦁ The startup’s sponsor/developer should have put his own money into the Company.
⦁ Startup companies should have taken appropriate precautions to ensure the security and economic health of the workers.

Security:-

COMPULSORY SECURITIES:
⦁ First Pari-Passu charge on current benefits for the Company.
⦁ Coverage for crucial personnel up to the amount spent to protect the facility.

SOME CONDITIONS:

⦁ Without SIDBI’s permission, the sponsor or shareholder cannot make investments.
⦁ Any debt, like Venture Debt, cannot be paid with support.
⦁ It won’t be a subordinated loan.

Funding Source:

SIDBI’s financial statements, as SIDBI will supply the venture funding directly.

The motive of the scheme;

Aim of providing temporary financial assistance to businesses whose COVID-19 pandemic harms capital and liquidity. This funding is often used to spread money flow needs, like salaries/wages, rent, operating costs, vendor payments, and so on. The loan could even be wont to cover GST refunds.

We at SDS Fin Advisory LLP are engaged in the field of Project Finance, MSME Loan, Working Capital, Unsecured loan and Government Subsidy work since 20 years. We provide best service with most satisfactory result in timely manner. We have more than 1000 happy clients. Feel free to contact us on 848596003 or info@sdsfin.in.

Scheme for Assistance To Industrial Parks

Becoming an industrial state, Gujarat is becoming a hub for investors to invest more capital. It is giving a good return to several investors, and after the new industrial policy 2020, several schemes are attracting other investors to enhance the industrialization in Gujarat.

New businesses and startups are getting multiple benefits to enhance their business due to the assistance rapidly, and the Gujarat government provides them. Gujarat is a strong platform for businesses to accelerate growth in the industry and prepare the best outcomes in minimum time.

Gujarat Industrial Policy 2020 aims to promote the businesses and develop a better infrastructure to reshape the businesses. The industrial policy has created adequate provisions to enhance the business’s infrastructure model and other facilities to develop industrial parks in the state. These industrial parks can enhance the knowledge of business for the new ones, and give them the confidence to build a business using available resources.

The scheme for assistance to industrial parks is managed by a task force that came into action in 2015. They understand the business’s competitiveness and provide necessary pieces of information to enhance the business’s infrastructure. The Gujarat government is boosting the participation of private firms to take action for the industrial parks. With motivation and confidence, the government is assisting businesses by incentivizing the businesses.

The name of this scheme is “Financial Assistance to the Industrial Parks.”

Eligibility of the institution to develop Industrial Parks.

If any institution or enterprise is registered under the Companies Act, Partnership Act, Trust Act, Societies Act, or other Acts under the development of industrial parks will come under the eligibility criteria of preparing the industrial parks.

Definition of Industrial Parks

An industrial park will consider being an industrial park with a minimum area of 20 hectares, allowing 10 industrial units to get established. The manufacturing unit of these industries must be separated by additional 2 units of 5 hectares, which can be used for the manufacturing operations.

All the areas must meet all the basic requirements like developed plots, road construction, water facilities, sewage, complete management of power, communication, and residing area. These requirements are crucial for every industrial park to get assistance and develop an industrial park for industries.

Assistance to these Industrial Parks

  • The eligible institution for the assistance will get 25% of the eligible expenditure, 30 crore rupees are maximum. The assistance is not including the land cost to get the amount.
  • If the industrial park is going to establish in Vanbandhu Taluka, then the assistance of 50% of the total expenditure will be there. The maximum amount to get assistance will be 30 crore rupees.
  • Additionally, in the hostel/residence area for workers, the institution will get 25% assistance or 20 crores per the development’s eligibility and rate.
  • After the park’s completion, the remaining 15% of the reimbursement will get sanctioned for the developers. The remaining 85% of the assistance will be provided while the development of the industrial park.
  • The eligible institution will get 100% reimbursement of stamp duty paid on purchase of land.

Conclusion

The Gujarat Industrial Policy 2020 is assisting several new developers, and businesses to enhance their business properly. It is crucial to understand the policy properly, which will help the institution get the reimbursements and proper assistance to enhance its industrial image.

There will be a committee, which will check all the documents to create an industrial park. This committee is a government body that follows the assistance’s complete procedure and allows the institute to participate in the scheme. This scheme is crucial for the businesses because of the total assistance from the government.

We are professionally engaged since last 20 years in area of Project Finance, MSME Loan, Term loan. Machinery loan, Working Capital, Unsecured loan and all type of Central Government and State Government Subsidy consultant work. We provide best project finance and subsidy service with most satisfactory result in timely manner. Till the date, We have served more than 1000 satisfied customers with 100 % result. You can always contact us on 848596003 or info@sdsfin.in.

New Scheme from SIDBI for Term Loan and WC

Product Parameters
1. Objective 1. Providing financial support to all MSMEs which are manufacturing products or providing services which are directly related to fighting corona virus, such as Pulse Oximeters, Permitted drugs (Remdesivir, Fabiflu, Dexamethasone, Azithromycin, Zincovit, Limcee, Ivermectin, Paracip, Azax, Betadine, etc), Ventilators, PPEs, inhalation Masks, IV Fluid – DNS / Dextrose, IV Sets, IV Cannula, ICU Beds, Cardiac monitors, Syringe pumps, Portable X ray machines, Endotracheal tube, Suction tube, etc.

2. Providing financial support to all MSMEs which are manufacturing Oxygen cylinders / Oxy generators / Oxygen concentrators / Liquid Oxygen for medical use or providing services (viz. transportation, storage, refilling, etc.) which are directly related to supply of such items to the customers.

2. Purpose of loan To acquire equipment/P&M/other assets including purchase of material
3. Quantum of Loan Maximum `200 lakh
4.  Security/documentation I. Existing SIDBI customers:
For Term Loans

A.    Charge on the assets acquired / to be acquired under the scheme.

B.    If minimum ACR is not achieved, CGTMSE cover for eligible customers may be taken or any other security to ensure ACR.

For WCTL

C.    Amount equivalent to 25% of our WCTL, kept as cash collateral. SIDBI FD or other forms of cash collateral such as surrender value of valid LIC policies etc. may be accepted.

II. New to SIDBI customers:
For Term Loans
A.    Exclusive first charge by way of hypothecation on assets acquired out of our assistance.

B.    CGTMSE cover or any other security as decided by the BO/BCC.

For WCTL

C.    Exclusive/first/first pari-passu charge on current assets financed (as may be feasible)

Obtain NOC from other WC banker for creation of charge on current assets shall be mandatory. In case of non-availability of NOC, charge on alternate assets may be taken depending upon  availability  of unencumbered / other assets to meet ACR requirements.

D.    Amount equivalent to 25% of our WCTL, kept as cash collateral. SIDBI FD or other forms of cash collateral such as surrender value of valid LIC policies etc. may be accepted.

5. Repayment TL – Generally, repayment period shall be 03 years, including maximum moratorium period of 01 year. Repayment tenure may be extended upto 5 years on case to case basis based on merit of the case.

 

WCTL – Repayable in 12-18 months including suitable moratorium.

6. Rate of Interest
Repayment period upto 3 years 4.50% p.a. to 5.50% p.a.
Repayment period more than 3 years 5.00% p.a. to 6.00% p.a.

Wherever CGMTSE cover is stipulated, CGTMSE charges shall be borne by SIDBI.