EFIC offers new loan facility to producers
Press release Shac Communications
Export Finance and Insurance Corporation (EFIC), Australia's export credit agency, can help producers finance Australian film and television productions for export to the world with its new Producer Offset loan.
EFIC has worked in collaboration with Screen Australia to develop the new loan facility that provides financial support to eligible Australian film and television productions with international distribution agreements.
EFIC's Producer Offset loan complements the Australian Government's Producer Offset incentive, which provides refundable tax rebates for producers of Australian feature films, television and other projects.
The Producer Offset loan is designed to help smaller productions that are eligible for the Producer Offset incentive but may have difficulty attracting finance in the commercial market, said Angus Armour, EFIC's CEO and Managing Director.
The loan can free up cash flow for a production and bridge the funding gap between when a production company incurs production costs and when it receives the Producer Offset through the taxation system.
The Producer Offset loan is available to producers who have a successful track record in delivering film and/or television productions, and who have a Provisional Certificate from Screen Australia stating the estimated level of qualifying Australian production expenditure for the project.
"We are pleased to be working with EFIC to support the growth of the Australian film and television industry" said Dr Ruth Harley, CEO of Screen Australia.
Financing is often a challenge in the film industry, especially for smaller productions. Great Australian productions can often suffer when there is a gap in financial support. Screen Australia welcomes EFIC's new Producer Offset loan as another financing option for Australian producers, said Dr Harley.
EFIC will lend up to 85 per cent of the estimated Producer Offset to eligible production companies that provide the required security, including a completion guarantee.
The Producer Offset loan provides financial support to eligible Australian film and television productions with international distribution agreements.
To qualify for the loan, the applicant must also establish a special purpose vehicle production company in Australia for producing the film or program, and must have secured the entire budget for the project (other than the funds to be provided by the loan).
The minimum loan amount is $100,000, and the maximum is $500,000. Flexible loan terms of up to two years are available.
For full eligibility criteria visit www.efic.gov.au/producer_offset_loan