PRIME ID Entrepreneur Funding
Three dedicated funding options are available for the entrepreneurs of Meghalaya under the PRIME program depending on type and stage of business. Those funding opportunities are specifically targeted towards the Startup Entrepreneurs as well as Nano Entrepreneurs of the state who have the capability to scale up their businesses and create livelihood opportunities and jobs for many individuals in the state. Customized funding options have to be developed due to the fact that many innovation-based businesses are usually not eligible for bank-based loan funding and hence have to be supported dedicatedly so in order to be able to grow.
Due to the strong focus on community-driven innovation and the promotion of Self-Help Groups (SHG), IVCS (Integrated Village Cooperative Societies), Farmer Producer Groups (FPOs) and other groups in the state of Meghalaya, the PRIME funding will also provide opportunities for those kinds of entrepreneurial groups.
Kick Start Grant
This non-returnable grant is meant to give startup entrepreneurs and aligned community-led enterprises financial equipment to take smaller capital and operational expenditures in regard to product development (e.g. R&D, Product Samples, Machineries, Fitout of Development Facilities). The grant can be awarded up to an amount of Rs. 5 lakhs. It is envisioned to support at least 100 such entrepreneurs per year with such grants. From the entrepreneurs side the grant has to be earmarked for the specific purpose of further developing a product/service/process, prototype or minimum-viable-product respectively expenses related to making an informal business operational.
This grant is specifically for those entrepreneurs who are in their early stages and have already some prototype/minimum viable product or convincing concept to showcase but need additional funding to develop this product or service to market-readiness. This grant can also be utilized to improve an existing innovation-based product or service. Whatever product or service that is supported with this grant fund, has to be innovation-based and scalable.
Innovation Scale-up Fund
This fund is meant for those startup entrepreneurs as well as aligned community-led enterprises that already have an innovative existing business and which have a clear pathway to scale up their operations to the next level and need financial means to do so. The Innovation Scale-up Fund can be awarded up to Rs. 25 lakhs via an interest-free, collateral-free soft-loan with a standard term of 2 years.
A standard repayment moratorium of 6 months is given for the Innovation Scale-up Loan. It is envisioned to support at least 50 entrepreneurs per year with this loan. Funding again has to be earmarked for a specific purpose related to scaling up operations to the next level. This Innovation Scale-up Loan is specifically for those entrepreneurs that have an innovative and scalable business which is not recognized or considered as a traditionally fundable business by banks or other financial institutions and hence are usually not eligible for bank loan funding.
This funding is not available to livelihood entrepreneurs or such businesses that are solely engaged in trading or arbitrage business activities that do not have an innovative character.
Interest-subsidized bank loans for promising traditional businesses
For those entrepreneurs and aligned community-led enterprises that work on a scalable business but do not fall under the innovation category a special vehicle has been set up so in order to provide access to banks loans with government subsidized interest rates. Those can be also startup entrepreneurs but will mostly be nano entrepreneurs who work on traditional, often imitation based, businesses
Due to this business alignments these entrepreneurs will usually be eligible for traditional bank loans. PRIME will facilitate the interaction with partner banks to ease the access to those loans. The most important allotment factor under this category is the potential of the business to create a large number of employment opportunities. It is envisioned to support at least 100 entrepreneurs per year via this funding opportunity.