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Financial Assistance to MSME
in the war against COVID-19
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S&A Knowledge Series
Prepared by Sarim Saleheen Lari Manager (Advisory)
Reviewed by CA Ravi Kant Partner (Finance and Business Solutions)
www.sethspro.com info@sethspro.com New Delhi | Lucknow | Coimbatore
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The country is facing an unprecedented challenge with communities and economies everywhere
affected by the growing COVID-19 pandemic. The country is coming together to combat the
COVID-19 pandemic bringing governments, organizations from across industries and sectors and
individuals together to help respond to this global outbreak. To Facilitate Emergency response
against coronavirus, Small Industries Development Bank of India (SIDBI), and Technology
Development Board (TDB) has come with various schemes to assistance and support MSMEs
manufacturing products or providing services related to fighting the Coronavirus
1. SIDBI Assistance to Facilitate Emergency response
against coronavirus (SAFE scheme)
Particular Details
Objective
To provide financial support to all MSMEs who are manufacturing any
products or providing any services which are related to fighting corona
virus
Purpose
1. To purchase any equipment for manufacturing/service
2. To purchase raw material for production
Loan Amount &
Instrument
Up to 50 Lakhs in the form of Term Loan or Working Capital loan.
Key Features
1. Loan within 48 hours
2. Interest rate: 5% per annum
3. No Promoters contribution
4. No processing fee, No repayment charges
Repayment
1. Term Loan: Up to 5 years including 1-year moratorium
2. WCTL: Normally 12 months including maximum 3 months’
moratorium
2. SIDBI Assistance to Facilitate Emergency response
against coronavirus Plus (SAFE Plus scheme)
Particular Details
Objective
To provide emergency working capital to MSMEs which are producing
goods and services directly related to fighting COVID-19
Purpose To meet additional working capital requirement for production/service
Loan Amount &
Instrument
Up to 100Lakhs in the form of Working Capital loan
Key Features 1. Loan within 48 hours
2. Interest rate: 5% reducing balance
3. No processing fee, No repayment charges
Repayment
Repayable over a 4-month cycle based on execution schedule of
government orders.

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3. Technology Development Board- Proposal for
Fighting Covid-19
Particular Details
Objective
To provide financial assistance to Indian companies and enterprises that
address protection and home base respiratory intervention for COVID-19
Support
Technological innovative solution towards- Low cost masks, cost
effective thermal scanning, large area sanitization and sterilization,
bioinformatics and surveillance. Low cost oxygenators and ventilators, or
any other related technology
Financial
Assistance
The Board provides financial assistance by means of soft loans (up to
50% of project cost @ 5% simple interest per annum), Equity
participation (up to a maximum of 25% of the project cost) or grant in
exceptional cases
Evaluation The proposals will be evaluated on the basis of scientific, technical,
commercial and financials merits.
Validity Submit the proposal on or before 30April, 2020.
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The information herein contained is of a general nature and is not intended to
address the circumstances of any particular individual or entity. Although we
endeavour to provide accurate and timely information, there can be no guarantee
that such information is very accurate and considers the latest amendment in laws
which are very frequent. The above is purely for academic reading and general
awareness of the law. No one should act on this information without appropriate
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situation.
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New Delhi | Lucknow | Coimbatore