Ubharte Sitaare Programme (USP)

The Ubharte Sitaare Programme was announced in the Union Budget 2021. Its purpose is to identify and support Indian small and mid-sized enterprises that have export-potential but are constrained in scaling up due to finance, technology, product/process limitations. Under this programme, SIDBI (along with Export‑Import Bank of India) anchors support including equity, debt, technical assistance for export-oriented manufacturing and service units. Your business, if it is export-oriented and meets the scheme parameters, can benefit from this support for expansion, modernization, capacity-upgradation and export market development.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Identifying “future champion” export-oriented MSMEs: The programme focuses on companies that have unique value proposition in products, processes or technology and good export potential though they may not yet have fully tapped it.
Structured support: equity, equity-like instruments, term loans/foreign currency term loans, technical/mentorship assistance: Under the USP via SIDBI, eligible units can access support in the form of term loans (including foreign currency term loans - FCTL), and sometimes equity/equity-like instruments, along with mentorship or technical assistance.
Target sectors of strategic importance with differentiated products, technology or process: The scheme highlights sectors like automobiles, aerospace & defence, chemicals, food processing, IT/ITeS, pharmaceuticals, precision engineering, textiles & allied sectors as eligible.
Flexible promoter contribution: lower equity contribution required in certain cases: For greenfield units or new ventures, promoter-contribution requirement is lower (e.g., 20% for brownfield/expansion, 30% for greenfield), making it easier for MSMEs to onboard.
Performance/milestone-linked incentives: The scheme mentions up to 25 basis points interest rate incentive tied to performance or milestones for eligible enterprises.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Term Loans / FCTL	Need-based term loans up to ~80% of project cost in eligible cases.	Example: If your project cost is ₹10 crore for a modernization/export expansion, the scheme may provide up to ~₹8 crore term loan support .
Equity / Equity-like Instruments	Via the “Ubharte Sitaare Fund” registered with SEBI, co-sponsored by SIDBI and Exim Bank.	Example: A unit needing growth-capital of ₹5 crore may receive partial equity/equity-like investment plus debt under the Fund.
Promoter contribution requirement	Promoter’s share kept lower: ~20% for existing/expansion projects, 30% for greenfield.	Example: For a new greenfield export-oriented project costing ₹10 crore, promoter may need to bring ₹3 crore (30%) and scheme may assist the rest.
Interest rate / milestone incentives	Up to ~25 bps interest-rate incentive for eligible enterprise performance.	Example: If standard rate is 10.00% p.a., eligible unit may get charged 9.75% p.a. subject to meeting milestones.

Eligibility Criteria

Who can apply:

Export-oriented small and medium enterprises, with business models and products/processes having export potential and unique value proposition.
Existing units that are fundamentally strong and have export orientation; also new units may be eligible, depending on promoter credentials and project viability.
Target sectors include manufacturing and services with export capacity, especially those mentioned above.

Who cannot apply:

Entities not engaged in export-oriented business or lacking credible export plans may not qualify.
Projects that do not meet technical/financial due-diligence standards may be disallowed.
Firms with inadequate governance or with weak business model may not be selected for the fund part of the scheme.

Documents Required

Application / one-page project summary with export potential, technology/process detail.
Financial statements / audited accounts of the enterprise and business plan for new units.
Export plan: target markets, products, business model, differentiation, capacity, marketing strategy.
Details of machinery/technology upgrade, capacity expansion, diversification, or product/process improvement.
KYC, promoter credentials, CIBIL/CMR check, business registration, MOA/AoA etc
In case of foreign currency loan: details of forex exposure, hedging strategy .
Any additional documents required by SIDBI .

Application Process for the Scheme

Option 1: Apply with Bullit

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: Export-oriented MSMEs seeking structured assistance under USP.

Option 2: Government Process via SIDBI / EXIM Bank

The enterprise identifies its export potential, product/process uniqueness, technology/upgrade requirement and prepares a project proposal.
Submit the proposal to SIDBI for appraisal; SIDBI evaluates the business plan, export potential, technology/ process / market readiness.
On approval, financing is sanctioned and technical assistance/mentoring may be provided.
The enterprise implements the modernization/upgrade/export expansion; monitoring and milestone-linked incentives may apply
The enterprise undertakes export activity, monitors performance and discharges debt/repayment as per schedule.

Option 3: Via Cluster/Association or State Export Promotion Cell
Export-oriented MSMEs may coordinate via their industry association or state export-promotion agency which can help prepare the application, link with SIDBI and facilitate mentoring/market development for exports.