As a small business owner, you know how draining debt service can be to your business. It’s hard to pour capital into expanding and growing your business when you’re paying interest on loans — yet you need to get that startup capital from somewhere in the first place. Fortunately, the government of India provides several excellent subsidy programs to help small businesses thrive.
The Credit Guarantee Fund Scheme for Micro and Small Enterprises
This government fund provides credit with no need for collateral, and you might qualify whether you’re a startup or you’ve been in business for a while. Working capital can run as high as Rs. 100 lakh, and there’s rehabilitation assistance to sick units covered under the scheme.
The Scheme for Technology Upgrade/Modernization for Food Processing Industries
If you run a food processing business of any kind, this government fund could be your answer. The government provides up to 25 per cent of the funds for your processing plant and machine, with a cap of Rs. 50 lakh in most areas. If you’re in an area deemed “difficult,” those totals go up to 33 per cent and Rs. 75 lakh. Use these funds to set up your business, expand it, or modernize it. All segments of the food industry are covered, including fruits and vegetables, milk products, meat, poultry, fish, oils, and seeds. In addition, this fund supports value-added enhancements and shelf life prolongation for food flavours, food colours, oleoresins, spices, coconut, mushrooms and hops.
The Government Subsidy for Small Business Organic Farming
Are you in the business of commercial organic farming? If so, the government of India’s National Project on Organic Farming wants to help you. This fund subsidizes capital investment in commercial production of organic fertilizers and bio-fertilizers, with a 50 per cent advance to get you started and 50 per cent held in your subsidy fund reserve account.
The Technology Upgrade Fund Scheme for the Textile Sector
If you’re in the textiles field, this fund can help you with a 15 to 20 per cent credit capital subsidy, depending on the specifics of your business — Look for higher subsidies if you’re in the power loom sector. In addition, this fund may reimburse up to 5 per cent of the interest you’re paying to lending agencies. The whole point of this fund is to support the use of state-of-the-art technology in the textile field, so if you’re ready for an upgrade, check it out.
The Scheme for the Integrated Development of the Leather Industry
The leather industry encompasses a wide range of businesses, from tanneries and leather products to footwear and footwear components. If you’re a business owner in this industry, take advantage of this fund to set up new factories and other production units. You can also draw on this fund if you’re expanding into a new facet of the leather industry. Be ready to submit paperwork showing how you intend to use the funds for enhancing productivity, cutting costs, right-sizing your capacity, or focusing on design and development.
The government of India has a deep commitment to helping small- to medium-size businesses thrive. One way it manifests that commitment is through the wide range of subsidies available to help businesses get off the ground or update their equipment and tech. In addition to the fields above, check out government offerings in the fields of coconut producing, agro-marine produce processing, dairy farming, horticulture, and more.