I have heard there is some equity grant for FPOs but the numbers people throw around are all different. Roughly how much can we get and what do we have to do to qualify?
There are two government supports people mix up, so understand both. 1) Equity Grant: the government gives a matching grant equal to the equity (share capital) that members have actually paid in, up to a per FPO ceiling. So the more share capital your members put in, the more matching grant you can claim, capped at the scheme limit. This is meant to strengthen your own capital base, not to be cash to spend. 2) Credit Guarantee: a cover that makes banks more willing to lend to your FPO without heavy collateral. The key condition for equity grant is that members must first contribute their own share capital, the FPO must meet minimum membership and shareholder spread rules, accounts must be in order, and you apply through your implementing agency. I am deliberately not quoting a rupee figure because the ceilings have been revised over the years; confirm the current per FPO equity grant ceiling and matching ratio on the SFAC or NABARD official portal or from your CBBO before you plan around a number.
Key point people miss: it is matching. If members do not put in their own share money first, there is nothing to match. Collect member shares seriously.
We pushed every member to buy shares worth a small fixed amount, then the matching grant doubled our capital base. Made the bank take us seriously.
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