Government credit agency to cash-flow Producer Offset
The Government’s export credit agency Export Finance and Insurance Corporation will offer the new Producer Offset loan, – lending up to 85 percent of the estimated offset so that producers can export their projects.
The loan was developed in collaboration with Screen Australia. It will be available to producers who have international distribution agreements, “a successful track record” in TV and/or film, as well as a provisional certificate from from Screen Australia stating the estimated level of qualifying Australian production expenditure (QAPE).
EFIC CEO Angus Armour said the loan would help smaller productions eligible for the PO, which may have difficulty attracting finance in the comercial market.
According to the initial information available about this loan, it will provide up to 85 percent of the estimated PO to eligible production companies that provide the required security – including a completion guarantee.
Applicants must also establish a special purpose vehicle (SPV) 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 is $100,000, and the maximum is $500,000. Loan terms are up to two years, and interest rates will be “competitive”.
