- April 17, 2020
- Grants & Schemes
- Comments : 0
SIDBI Startup Assistance Scheme
COVID-19 STARTUP ASSISTANCE SCHEME (CSAS)
Context
COVID-19 pandemic has impacted the entire economy and the startup ecosystem is
no exception. SIDBI recognizes the operational and financial challenges being faced
by the start-ups and endeavors to provide financial assistance and stability via its
scheme viz. Covid-19 Startup Assistance Scheme (‘CSAS’). This scheme will provide
assistance to innovative startups that have demonstrated ability to adapt to
economic impact from Covid-19 and ensured its employees safety and financial
stability. SIDBI does not extend credit to startups and only specializes in equity and
fund infusion, it is starting this Scheme in view of unprecedented situation and the
consequential cash crunch faced by many startups. This is purely an interim
arrangement.
Scheme and Process
CSAS aims to provide assistance to startups that will directly benefit from the scheme.
The objective of the Scheme is to provide quick working capital in the next 45 to 60
days to the Start-ups. Therefore, for a faster processing a Recommendation
Committee comprising of 5 members (3 from SIDBI and its nominees and 2 from
Venture Capital Industry) will be created. The process followed for screening by the
application shall be as follows:
1. The Scheme document shall be available on SIDBI portal.
2. An application cum Credit Appraisal Memo (CAM) along with Self Assessment
Tool (SAT) shall be made available on the SIDBI portal.
3. Start-ups are required to fill the CAM, SAT, and submit the documents to a
designated email id ([email protected]), within 30 days of launch of the Scheme.
4. The Recommendation Committee will run a process, which will include a credit
evaluation, Video Conference with the startup and VC Investor.
5. Thereafter proposed Internal Credit committee of SIDBI (ICC) will hold a weekly
meeting to approve loans to Startups. During the ICC meetings, the Startups
along with the VC Investor may be required to be available for a Video
Conference meeting.
6. Approval or rejection will be communicated on the same day by email.
7. The Loan Agreements and related documentation will be completely digital.
The Scheme will be launched all throughout the country, for Government defined
Start-ups, based on the eligibility criteria detailed in the Scheme.
The broad parameters of the Scheme are given below:
