Government subsidy for small business is very much effective in any small-scale industry. Many incentives are provided both by the Central and State Governments to promote the growth of small-scale industries specially MSME. Here is a list of 10 best Government subsidy for small business will help you in getting the subsidy from Government in different sectors.
Subsidy For Small Business
#1. The Credit Guarantee Fund Scheme for Micro and Small Enterprises
The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) was launched by the Government of India to provide collateral-free credit to Indian MSMEs. Both the existing and the new enterprises are eligible for the scheme. The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI) established a trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the scheme.
The scheme provides credit facilities in the form of term loans and working capital facility of up to Rs. 100 lakh per borrowing unit. The amount is contributed by the Government and SIDBI in the ratio of 4:1, respectively. The scheme also offers rehabilitation assistance to sick units covered under the guarantee scheme. To know more about the scheme, Click Here.
#2. Technology Upgradation Fund Scheme (TUFS) For Textile Industry
Ministry of Textiles introduced the Technology up gradation fund scheme (TUFS) for textiles and jute industry in April 1999 to facilitate induction of state-of-the-art technology by the textile units. It includes the benefits like 5% interest reimbursement of the normal interest charged by the lending agency on RTL, or 5% exchange fluctuation (interest & repayment) from the base rate on FCL, or 15% credit linked capital subsidy for SSI sector, or 20% credit linked capital subsidy for power loom sector, or 5% interest reimbursement plus 10% capital subsidy for specified processing machinery. To know more about the scheme, Click Here.
#3. Scheme for Technology Upgradation/ Establishment/ Modernization for Food Processing Industries
This Scheme covers the following activities: Setting up/expansion/modernization of food processing industries covering all segments viz fruits & vegetable, milk product, meat, poultry, fishery,oilseeds and such other agri-horticultural sectors leading to value addition and shelf life enhancement including food flavours and colours, oleoresins, spices, coconut, mushroom, hops. The assistance is in the form of grant subject to 25% of the plant & machinery and technical civil work subject to a maximum of Rs. 50 lakh in General Areas and 33.33% up to Rs. 75 lakh in Difficult Areas. To know more about the scheme, Click Here.
#4. Integrated Development of Leather Sector – Scheme for Leather Industry
The scheme is aimed at enabling existing tanneries, footwear, footwear components and leather products units to upgrade leading to productivity gains, right-sizing of capacity, cost cutting, design and development simultaneously encouraging entrepreneurs to diversify and set up new units. Newly eligible units would be approved for assistance under the scheme only on submission of the copy of all the required registration, NOCs from all concerned Government Departments for setting up of the unit and when the factory building is ready for installation of plant and machinery. To know more about the scheme, Click Here.
#5. Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS)
Upgradation of the process as well as the corresponding plant and machinery is important to help SMEs reduce the cost of production and remain price competitive in the global market. To help SMEs flourish in international trade markets, the Ministry of Small Scale Industries (SSI) runs a scheme for technology up gradation of Small Scale Industries. Known as the Credit Linked Capital Subsidy Scheme (CLCSS), it aims at facilitating technology up gradation by providing the upfront capital subsidy of 15% (limited to maximum Rs.15 lakhs) to SSI units for credit availed by them for the modernization of their plant and machinery. All sole proprietorship, partnership firms, cooperative, private and public limited companies are eligible for this scheme. To know more about the scheme, Click Here.
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