Sometimes it looks like running a business in a creative or cultural sector is so glamorous. But if you are a business owner in art, culture, or another creative sector, you know better than anyone else that it’s not an easy task.
It’s not all about creativity and ideas; it’s like other businesses – a hard and challenging path. We believe, like most business owners, you are dreaming of scaling your projects to new heights. But it’s super challenging, especially when you need financing.
The creative economy is generating many new business and finance models, driven in part by the rapid development of the digital world but also because of its social and cultural significance and its ability to find innovative solutions to long-standing problems. It’s no surprise that the creative economy is closely related to the start-up economy, making financing a bit tricky.
That’s where the European Union and the European Investment Fund (EIF) step in with the Cultural and Creative Sectors Guarantee Facility (CCS GF). This initiative is designed to help creative businesses across Europe secure the financing they need to thrive. Here’s how you can take advantage of this opportunity.
At Finora Bank, we are financing with those guarantees. In this blog post, we will share insights on who can apply for financing with guarantees and how to do this.
Who Can Apply?
If you’re a small or medium-sized enterprise (SME) or a small public enterprise in the creative sector, you could be eligible. Your business must meet the following criteria:
- Location. Your business must be established and operating in one of the participating countries (EU Member States, Iceland, or Norway).
- Sector. Your business has to work in the cultural and creative industries, which include:
- Architecture
- Archives and libraries
- Museums and artistic crafts
- Audiovisual (film, TV, video games, multimedia)
- Cultural heritage
- Design
- Festivals
- Music
- Literature, publishing
- Radio
- Visual arts
- Performing arts
Let’s look at some real-life examples of how EIF-backed loans have helped creative businesses:
- Printing house expansion: A small printing house wants to increase its production volume but needs new expensive printers and doesn’t have enough working capital to buy them. With an EIF-backed loan, the printing house can secure the financing needed to purchase the printers, boosting its capacity and growth.
- Festival organization: Suppose you organize a local music festival and want to book bigger acts and improve the festival experience. You can apply for a loan with EIF guarantees, allowing you to enhance your lineup and attract a larger audience, turning the festival into a significant cultural event.
- Design studio upgrade: Imagine you have a design studio and want to expand your team and invest in new technology. An EIF-backed loan can help you hire more designers and upgrade your equipment, leading to increased productivity and the ability to take on larger projects.
- Museum renovations: If you manage a small museum and need funds for renovation to attract more visitors, an EIF-guaranteed loan can provide the necessary financing. This allows you to refurbish your exhibits and facilities, resulting in higher foot traffic and increased ticket sales.
- New tourism location creation: If you have a vision to create a new tourism location or park and need to buy new real estate or land for it, you can use EIF-backed financing.
How to Apply
The application process is simple:
- Prepare your application: Compile necessary documents that highlight your project’s potential and creative value.
- Submit and wait: Submit your application online here and wait for the answer. With EIF guarantees backing up to 70% of the loan, the risk for lenders is reduced, increasing your chances of approval.
Imagine what you can achieve with a stable financial foundation – new creations, larger audiences, and lasting impact. Finora Bank is here to support you in making it all happen!
So, whether you’re sketching your next architectural marvel, organizing an art exhibit, or producing a groundbreaking documentary, the financial support you need is just an application away.
Embrace the opportunity, apply for a creative loan, and watch your artistic dreams take flight.