Covid-19 Startup Assistance Scheme (CSAS)
What is the scheme?
Through Covid-19 Startup Assistance Scheme (CSAS), SIDBI provides assistance to innovative startups that have demonstrated the ability to adapt to economic impact resulting from Covid-19 and ensured its employees safety and financial stability. The scheme intends to provide interim support to startups whose cash the Covid-19 pandemic has adversely impacted flow and liquidity. The assistance can be used to compensate for various working capital requirements like salaries/wages, rent, administrative expenses, payment to vendors etc.
How much funding can a unit expect under the Scheme?
Under the scheme, a Startup is eligible up to ₹ 2 Crs as Working Capital Term Loan.
Which units are eligible under this scheme?
The eligibility criteria for a startup are
1. The government dened Startups which has received funding through at least one of the Alternate Investment Funds registered with SEBI.
2. A startup with a minimum employee count of 50 employees which may also include foot soldiers.
3. A startup in the FY 2019-20, having a minimum turnover between INR 10 crore to INR 60 crore.
4. A startup should have positive unit economics.
5. A startup that has been incorporated for less than 10 years
6. A startup should have a positive Net Worth
7. A startup should have demonstrated innovative measures for ensuring business continuity during the COVID – 19 period.
8. A startup should have taken adequate measures and ensured employee safety and their financial stability
9. The promoter/founder of a startup should have invested his capital in the business
10. A startup not having working capital facilities with any Bank.
What are the loan tenure options?
The loan is applicable up to a period of 36 months which includes a maximum moratorium period of 12 months. The loan must be repaid within a maximum of 24 installments.
What kind of collateral and margin is required?
First Pari-Passu charge on current assets of the Company, Keyman Insurance to the extent of facility amount disbursed to secure the facility and Additional Security, if available as Hypothecation of movables of the company, Pledge of Intellectual Property and Pledge of Promoter shares.
