SIDBI Service Sector Assistance : Small Industries Development Bank of India

Organization : Small Industries Development Bank of India
Scheme Name : Service Sector Assistance

Website : http://www.sidbi.com/?q=service-sector-assistance

Service Sector Assistance:

Who is it for:
** Existing Small and Medium Service Sector Enterprises in need of Loan/Capital for Growth
** Existing promoters with experience in the similar activity for setting up new projects.

Related : Mudra Pradhan Mantri MUDRA Yojana/ Scheme : www.statusin.in/10099.html

Your current area of operation could be in any of the Service Sector Businesses listed below:
** Hospitality & Tourism related activities (including Health Tourism)
** Health care (Diagnostic & Pathology centres / Clinics, Hospitals, etc.)
** IT and IT enabled services
** Business Process Outsourcing (BPO), Knowledge Process (KPO) and other knowledge based activities
** Advertisement and Promotion Services
** Infrastructure Support Services including activities relating to Telecom
** Transport Services
** Logistics
** Supply chain management
** Warehousing and cold storage
** Retail outlets
** Hotels below 5 star category, especially budget hotels
** Restaurants
** Modern health care facilities/ Health clinics/ Hospitals with
** focus on relatively smaller hospitals
** Franchisees / Franchisors
** Rent a car operators
** Scientific or technical consultancy, testing and analysis agency, event management for industry, promotion of** industrial growth.
** Tourism related activities
** Auto workshops / Repairs/ Auto Dealers
** Telecommunication Services
** Business Process Outsourcing (BPO), Knowledge Process Outsourcing (KPO) and other knowledge based activities like call centres, technical help desks, medical transcriptions, bio-informatics, contract research, etc.
** Setting up of mobile/radio frequency transmission/receiver  towers, cabling, network installation, systems integration, service centres, dealerships, etc.
** Setting up of service stations (petrol and gas filling stations, auto workshops, etc.), health and fitness centres, event management, and establishment of design houses/studios.

Your Needs:
** You would like to have adequate capital/loan to meet the growth aspirations of your business.
** 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.(or so that you have adequate time to stabilize the operations of your venture)

Scheme Details:
Term loan and. Investment products such as Sub-debt, Equity, convertible debentures, optionally convertible cumulative preference shares, zero coupon bonds, etc.

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.

Eligibility:
** Service sector project within the ambit of Section 2 (h) of SIDBI Act.
** Maximum project cost upto Rs 75 crore with term loan from SIDBI not exceeding Rs 50 crore.
** Where investment in equipment is not more than Rs 5 crore, project cost upto Rs 250 crore.

The unit should generally be a private limited / public limited company. However, partnership firms, sole proprietorship concerns and Societies and Trusts would also be considered on a case to case basis.