EU funding opportunities for Creative Industries

Gloria Lorenzo Lerones

Bronagh Walton

MEDIA

Creative Europe Programme objectives

General objectives

•Promote cultural and linguistic diversity and cultural heritage

•Strengthen the competitiveness of the European cultural and creative

sectors (CCS), in particular the audiovisual sector

Support CCS capacity to

operate transnationally

and internationally

Promote transnational circulation

and reach out to new

audiences

Strengthen the

financial capacity of

CCS

Foster policy development, innovation, new business

models

Specific objectives

CULTURE / MEDIA

Sub-programmes

Cross-sectoral Strand

and Guarantee Facility (including Capacity Building )

Training

• Finance

• Management

• Investment readiness

Networking

• Access to market

• Co-production forums

CCS SMEs and

professionals

• Capacity building

• Networking

• Technical support

Banks

Guarantee Facility

• Fund € 121 M

• Multiplier of 5,7

• Up to € 700M of

bank loans

• Capped guarantee

portfolios

CCS Guarantee Facility MEDIA and Culture

Capacity Building Risk sharing

Dialogue

Creative Europe 2014-2020

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4

Access to Finance in the CCS (by IDEA)

• Shortage of reliable data = lack of critical mass.

• Intangible nature of the assets (mainly IPR)= personal collateral is

typically requested

• Project based planning. Business plan= ca.10%

• Specific cash flow schemes (subsidies, 3Fs),

Economic performance OK

European FIs–with a few exceptions - do not currently have the in-house

necessary expertise for evaluating credit risk in the CCS

Financing gap estimated: B 8 to B13 euro

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Creative Europe: some objectives:

• General Objective :Strengthen the competitiveness of the

CCS (promoting smart, sustainable and inclusive growth)

• Specific objectives: Strengthen the financial capacity of the

CCS (SMEs and and micro, small and medium-sized

organisations )

• Operational objectives of CCS GF:

• – (counter)guarantees to banks dealing with CCS SMEs

• – provide expertise/capacity building to the FIs

• – increase the number of FIs working with CCS SMEs;

• – geographical diversification

Horizon 2020 (InnovFin) (€2.7bn) Guarantees to RDI-driven/ innovative SMEs & small midcaps between €25k

and €7.5m and ambitious RDI projects (Call published)

risk capital at the early and start-up phase (call expected 2015)

Financing of large innovation projects

Loans, guarantees, venture

capital/equity or grants for SMEs

- EU level instrument (contribution of Member State funds from

Operational Programmes to centrally

managed EU programs)

- Off-the shelf instruments

- Tailor-made instruments

COSME (€1.4bn)

Guarantees with a particular focus on financing of SMEs up to €150.000 (Call published) Risk capital predominantly into SMEs at the growth and expansion stage (Call published)

Social Change

& Innovation (€193m) Microfinance to micro-enterprises Investments of up to €500.000 to social enterprises (call expected Q2 2015)

European Structural and

Investment Funds (ESIF)

Central EU instruments

Jobs,

Gro

wth

an

d

Socia

l C

ohesio

n

Creative Europe

(€120m) Guarantees for cultural and creative

sector (call expected end 2015)

Re

sea

rch,

De

velo

pm

en

t,

Inn

ovation

EU Financial Instruments (2014-2020)

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How do EU financial instruments work in practice – overview

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In a nutshell: CCS GF

• Market driven Guarantee/Counter guarantee facility to share credit

risk (70%, up to 25% on portfolio)

• With banks investing in portfolios of loans

• Loans to organisations operating in the CCS

• No personal collateral

• Capacity-building / expertise for banks: non-financial leverage

• Managed by the European Investment Fund

• € 121 million fund raising credits for up to € ca.700M to the benefit of

SMEs in CCS

• Up to 10% for CBS

• Large scope of CCS

• Participation: EU/EEA

• Implementation: 2016-2020

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Capacity Building Scheme

Information and Promotion

• Approach to the promotion of the CCS GF should be both market oriented (commercial potential from the bank's point of view) and technical in order to engage FIs more efficiently

Capacity Building modules and follow up • Only delivered to participating FIs, with 3 modules: theoretical,

practical and consultancy approach. • Case-based consulting: support and advise to FIS on the

assessment of their first loan applications and on the management of their portfolio

• A "comfort period" in which the FI would have access to the Capacity Building Provider for advise and consultations

Thank you