Small and Medium enterprises were expecting grants/ subsidies for their small firms but they did not get any kind of package from the government. Businesses have been asked to close yet govt has not done anything to compensate their losses.
The entire package announced by government consisted of credit lending for SMEs from banks. Banks have their own criteria when awarding loans. Govt announced Mudra Loans yet banks sanctioned them mostly to weaker sections ignoring OC middle class firms who were asked to bring collateral even for Mudra Loans.
Similarly,even for these loans, govt says collateral free loans but banks will again ask for collateral when one goes to the banks. Govt has not done anything to pay the payroll losses of firms who have been asked to close down. In the U.S., government took care of payroll protection for firms and granted them funds to compensate for their lockdown. In India, no such payroll protection happened. This has caused immense loss to firms for having met the salaries from their own pocket without any revenue in return.
