The Industrial Business Development Foundation has selected 1,301 projects in the preliminary list out of the proposals received under the ‘Startup Enterprise Loan Program’. The foundation issued a notice on Friday and made public the list of projects selected in the preliminary list.

The foundation has also asked the proposers in the preliminary list to click on the message link received and download the information format required for further evaluation of the project proposal included in the preliminary list posted on the website and fill in their business details. The foundation urges them to fill it completely and send it on WhatsApp by 23 Baisakh. It has also been stated that if it is not sent within the specified time limit, the proposal will automatically be invalid. 

The government had earlier sent a letter to the municipalities through the Ministry of Federal Affairs and General Administration asking them to conduct on-site inspection of the project proposals under the Startup Enterprise Loan Program. It was said that it was necessary to check the physical condition of the relevant project during the evaluation process of the proposals received for the startup loan. After checking the physical condition, the foundation made the preliminary list public. 

The foundation had issued a 21-day notice on 19 Kartik. In it, 10,244 entrepreneurs have submitted project proposals. 2,041 entrepreneurs registered their project proposals at the institute. 8,203 people registered their proposals online.

The government has allocated a budget of Rs 730 million to provide startup loans for the current fiscal year. However, the amount to be distributed for startup loans has reached Rs 1.26 billion by transferring the amount that is not spent at the institute, said Umesh Gupta, executive director of the institute.

This is the third time that the institute is going to provide startup loans. After it was found that some project proposers also brought fake videos while disbursing loans in the two fiscal years, an on-site inspection was requested this time.

Entrepreneurs who are registered as private firms, partnership firms, companies or cooperatives with the relevant industry registration bodies, have high growth potential through transformation into an enterprise business by using innovative and creative thinking and technology in the production of goods or services, have adopted technology, have not exceeded 10 years since the enterprise business was registered, have not exceeded 150 million rupees in any financial year after registration, and have started a new enterprise business without merging or splitting an existing enterprise business are eligible for startup loans.

Loans will be given in the areas related to agriculture and livestock, forest products, tourism promotion and entertainment and hospitality, science, technology, information and communication, human health services, education and teaching and learning, automobiles, traditional technologies, process improvement of production and service delivery, household or daily living, food production and processing, easy and safe transportation and transit services, mining and mineral research and development. The foundation had previously been distributing loans to entrepreneurs from a minimum of 500,000 to a maximum of 250,000 rupees. But this year, it has been said that loans will be disbursed from a minimum of Rs 500,000 to a maximum of Rs 200,000.

Earlier, the proposal that received the highest score among the proposals that received more than 50 percent of the points received after credit appraisal from the bank was prioritized and recommended for loans. The evaluation committee formed by the foundation has been evaluating the proposal based on the presentation of the proposed project and the photos, videos, financial statements and other details of the business of the proposer and the questions and answers of the evaluation committee. But since the number of proposals for loans has started increasing every year, this time, on-site testing has also been started. 

The total score will be calculated by adding the average score of the proposer's evaluation committee and the score received after credit appraisal from the bank. The evaluation committee will prioritize the proposal that received the highest score among the proposals that received at least 50 percent of the points and submit the loan recommendation list to the executive director of the foundation for approval.

In the last fiscal year 2081/82, although the government allocated Rs 1 billion for startup loan disbursement, it disbursed Rs 886.625 crore in loans. Up to 3 percent of the allocated budget was spent on administrative expenses of the foundation, while 25 percent was kept in the deposit and loan protection fund for loan security (insurance).

The foundation had disbursed startup loans worth Rs 886.625 million to 600 people in the last fiscal year. The foundation had called for project proposals for loan disbursement on 11 Bhadra 2081. At that time, 5,158 entrepreneurs had registered their proposals online and physically. Out of these, 1,314 entrepreneurs were selected for project presentation on 19 Poush. Out of the selected entrepreneurs, 1,073 entrepreneurs presented their projects from the last week of Poush to the second week of Chait.