Small music businesses will receive funding through the new proposal
The Independent music companies are hailing the European Commission for its proposal to set up a fund for cultural and creative industries. The 1.6bn euro programme could give smaller producers and artists a
leg-up in the highly competitive industry.
The EC’s proposal, published last night, is expected to help increase lending to music and other cultural companies by guaranteeing loans by national banks. The program is set to begin in 2014, and will include loan and equity financing instruments to be administered by the European Investment Bank.
Currently, lending in the music sector often depends on personal guarantees and collaterals required by the banks, which can be restrictive and discourage market growth.
Helen Smith, Executive Chair of IMPALA, the Independent Music Companies Association, praised the EC’s proposal, saying, “This is great news for the music sector. If we can also couple this with concrete measures to improve market access for (small and medium-sized businesses), we can completely transform Europe’s cultural industries.
The European Commission budget proposal now has to be approved by a unanimous decision of the Member States, after Parliament has given it its consent.
IMPALA hopes for the creation of a pilot project in 2012, to test the fund ahead of the implementation of the new financial framework.