FAQ # 8 - Can we get any support from the government?
Advice - There is no announcement by the government or any of the ministries on direct support to startups. However there are some indirect benefits for MSME and for some specific domains, if your venture is eligible for any of the schemes then you should apply for it.
Covid Startup Assistance Scheme (CSAS) by SIDBI, provides assistance to startups that will directly benefit from the scheme. The objective of this scheme is to provide quick working capital in the next 45 to 90 days to startups. Through this scheme, startups can receive a loan of up to INR 2 crore.
However do not expect much from this scheme, as the eligibility criteria designed is not for startups who may actually require help:
1. Government defined startups with funding through at least one of the AIF registered with SEBI
2. Min employee base of 50
3. Min turnover between INR 10 - 60 crore in last 2 years
4. Positive unit economics
5. Incorporated for less than 10 years
6. Positive net worth
7. Demonstrated innovative measures for ensuring business continuity during the COVID-19 period
8. Must ensure employee safety and financial stability
9. Promoter/founder of startup should have invested their own capital
10. No working capital facilities with any bank