Growth Capital and Equity Assistance

Who is it for

  • Existing Small and Medium Businesses in need of Capital for Growth

Your Needs

  • You would like to have adequate capital to meet the growth aspirations of your business, but without diluting your ownership.
  • You would like to make investments in Marketing, Brand Building, Creation of Distribution Network, Technical Know-how, R&D, Software Purchase, etc but the lenders you typically approach are not comfortable with such intangible assets.
  • You would like to raise finance on the strength of your business and backing of your cash flows rather than Asset Cover/ Collateral Security. You would also like to have a longer initial moratorium on principal instalments to ensure greater chances of success for your ventures.

Scheme Details

  • Growth Capital and Equity Assistance Scheme provides assistance in form of Mezzanine/ Convertible Instruments, Subordinated debt and Equity (in deserving cases).
  • This quasi assistance has a higher moratorium on repayment and a flexible structuring.

Key Benefits

  • Bridge the gap in means of finance for scaling up/ expansion/ modernization projects.
  • Access long term structured assistance especially  for investments in intangible assets
  • Leverage Equity / Sub Debt Assistance from SIDBI for raising higher debt funds.
  • Avoid complexities of Enterprise Valuation, Exit Issues etc – associated with Equity Investments.

Security (in case of Debt based Instruments)

  • Charge on available assets of the beneficiary unit and assets created out of SIDBI assistance
  • Personal guarantee of the promoters
  • CGTMSE Coverage, wherever applicable.

Eligibility

  • An MSME as per the definition of Government of India (MSMED Act)  and 
  • SIDBI’s existing customers (meeting internal rating criteria)

      or

  • Units with past 3 years of profitability and 2 years of satisfactory banking credit track record (meeting internal credit rating criteria) Acceptable external rating from CRISIL, ICRA, D&B, SMERA etc would be desirable.

How to Apply

FAQ