SIDBI'S COVID-19 Assistance Scheme: A Rigid Framework In Illiquid Times

1. INTRODUCTION

In a robust response to industry calls for urgent assistance to start-ups impacted by the COVID-19 pandemic, the Small Industries Development Bank of India ("SIDBI") has rolled out the COVID-19 Start-up Assistance Scheme¹ (the "CSAS").

1. HIGHLIGHTS OF CSAS

2.1. Targeting

The CSAS has laid down several guardrails in order to identify the start-ups appropriately:

(a) Recognition as a 'start-up' by the Government²;

(b) Funding by an Alternate Investment Fund ("AIF") registered with SEBI;

(c) Incorporated for less than 10 years;

(d) The promoter or founder of the start-up should have invested their own capital in the business;

(e) Demonstrated innovative measures for ensuring business continuity during COVID-19 period;