“The Arts Council needs to enhance its role as an investor that understands how to support and position the arts as a driver for economic growth.”

Achieving great art for everyone Arts Council England’s 10 year strategy for the arts

Image courtesy of Gemma Land, scarf and print artist (www.gemmaland.com)

1 Programme aims

The principal aims of the Creative Industry Finance programme are to:

• provide access to finance for small and medium enterprises (SMEs) operating within the cultural/creative industries, enabling business growth and supporting talent development

 • improve the business skills and commercial

experience of SMEs operating within the cultural/creative industries

2 Programme objectives

The primary objectives of the programme are to:

• improve the financial profile/lending history of creative industry SMEs with growth potential, enabling them to attract further investment from the private sector, thereby becoming more sustainable as independent enterprises

• provide an evidence base for the demand and effectiveness of loan finance as an alternative to grant funding for commercially viable cultural and creative industry enterprises  

3 Geographic focus

• London (launched 29 May 2012)– Open to applicants across all 33 boroughs– Operated in partnership with East London Small Business Centre– £300,000 fund in year 1 (2012/13)– £200,000 fund in year 2 (2013/14)

• Yorkshire & Humber (launched 5 September 2012)- Open to applicants across region (21 council areas)- Operated in partnership with The Key Fund- £100,000 fund in year 1 (2012/13)- £200,000 fund in year 2 (2013/14), including match funding contribution

from The Key Fund

4 Key features of the programme

The programme comprises two key components: • Training and support

Up to 12 hours one-to-one business development support with a specialist business adviser

• Access to finance

Opportunity to apply for a loan of £5,000 to £25,000 to help develop and grow a business

Image courtesy of Nina Wadcock, Illustrator and gallerist Patternity Design studio

5 Yorkshire Pilot Programme – application criteria

Applicants must be able to demonstrate that their business meets the following key criteria:

• located in one of the 21 local authority areas• trading for a minimum of 6 months• business activity qualifies under one or more of the

following creative industry classifiers:

architecture; crafts; computer games; design; designer fashion; film and video; music; theatre and performing arts; publishing/literature; software; TV & radio; visual arts

• creative content is at the heart of their business

6 What kinds of business can apply?

• We will consider applications from sole traders (individual artists) as well as limited companies, partnerships and not-for-profit/social enterprises

• Applicants must be able to demonstrate that they have been “trading” (ie set up in business) for at least six months;

• Organisations that receive regular funding from Arts Council England as part of the National Portfolio are not eligible to apply for support under this programme

7 Terms of lending

• Loans will be made available to businesses that have been unsuccessful in applying for finance from their own bank (“lender of last resort” principle) – but not a pre-requisite at application stage

• Loans will be available from a minimum of £5,000 up to a maximum of £25,000 repayable over a period of 1, 2 or 3 years

• Loans cannot be used to pay off existing debts

8 Interest rates

Loans issued under this programme will carry interest charges of 10% APR. The total amount of interest that the borrower will pay depends on the total amount borrowed and length of time over which it is repaid.

Example:

Amount Borrowed

Repayment term

APR Monthly Payment

Total Repayments

Total interest paid*

£5,000.00 12 months 10% £439.58 £5,274.95 £274.95

£7,500.00 24 months 10% £346.09 £8,306.09 £806.09

£10,000.00 36 months 10% £322.67 £11,616.12 £1,616,12

Textiles by Margo Selby, printed scarves Gemma Land, academic art books by Libri Publishing, the Sound Savers recording studio, jewellry by Niza Huang, sustainable fashion by Choolips

9 How are applications to the programme assessed?

9 How are applications to the programme assessed?An initial online application form will be assessed by Arts Council England using the following criteria:

• Relevance of creative content to the core business activity

• Quality of the creative content

• Potential of the business to benefit with regard to the aims of the programme

10 Range and diversity of applications

• We want to encourage applications from a diverse range of companies operating across the Creative Industries during this pilot phase

• We expect to support over 150 Yorkshire based businesses during the pilot programme, and provide access to finance to approximately 30 loan applicants

• Quality of content is important, but entry to the programme will ultimately be judged by The Key Fund on the strength/viability of the business plan and the commitment, focus and aspiration of the company directors

11 Investment Panel Decisions

• Proposals from businesses will be considered by The Key Fund’s investment panel at regular intervals (normally every 4 – 6 weeks)

• The panels will be convened by The Key Fund and includes representation from Arts Council England (ArtCo Trading Ltd)

• Lending decisions will take into account both the strength of individual applications as well as the overall balance and range of applications from across all creative industry sectors

12 How to apply…

• Go to www.creativeindustryfinance.org.uk and complete the online eligibility checker

• Register your interest, and complete the online application form

• If you have any questions or need support in order to complete the application, call us on 020 7973 5546 or email cifinance@artscouncil.org.uk

• We will let you know within 5 working days if your application has been successful

Custom wooden furniture by Anthony Hartley Sustainable fashion from Choolips

13 Target outcomes 2012/13

• 150 Yorkshire-based creative sector businesses have increased financial awareness and confidence

• Increased revenue for up to 30 Yorkshire-based creative sector businesses after 12 months

• Arts Council England have an increased understanding and evidence base of the business development needs and opportunities for Creative Industry enterprises in the Yorkshire region

Staying in touch….

Web: www.creativeindustryfinance.org.uk

Twitter: @cifinance

Facebook: facebook/CreativeIndustryFinance

Email: cifinance@artscouncil.org.uk

www.artscouncil.org.uk

Thank you

Mary-Alice Stack, Director, ArtCo Projectsmary-alice.stack@artscouncil.org.uk020 7973 6503

Bryony Beynon, Programme Assistant, Creative Industry Financebryony.beynon@artscouncil.org.uk020 7973 5546