IFCIC, a specialised lending institution, was charged by both the Ministry of Culture and Communication and the Ministry of Finance with contributing to the development of the culture industry in France by making it easier for sector companies to obtain bank financing. IFCIC, a neutral and independent institution, is a private-sector limited company entrusted with a service of general interest. Its capital is owned by French banks, large public financial institutions (Caisse des Dépôts and OSEO), and French State. The banks that work with IFCIC are given not only financial guarantees in the event that companies should fail, but also risk analyses that are specific to the cultural industries, in particular where short-term loans for film and audiovisual projects are concerned.
Contents
- 1 Loan guarantees 1
- Loan guarantees for production and distribution
- Loan guarantees for companies in the cultural industries
- 2 Loans and advances
- IFCIC Prize for the young independent production company
- IFCIC Prize Entreprendre dans la culture
- References
IFCIC helps entrepreneurial companies get financial backing for projects from their banks. It also offers its own financial expertise.
IFCIC's familiarity with the industry and relations with expert committees as well as professional networks enable it to conduct in-depth analyses of the risk incurred by companies that seek financing. The loans guaranteed by IFCIC cover most of the needs of companies, at all stages of their development.
IFCIC's Chairman is Jean-Paul Cluzel and its Managing Director is Florence Philbert.
1. Loan guarantees [1]
IFCIC has equity of about €31 million and, more importantly, two active guarantee funds with a total gross value exceeding €75 million: the Fonds de garantie Cinéma et Audiovisuel, which is funded by the Centre National de la Cinématographie (CNC) and the Fonds Industries Culturelles, funded in large part by the Ministry of Culture. These funds enable IFCIC to guarantee up to €525 million (IFCIC share), corresponding to total loans of the order of €1,036 million, and still have sufficient capacity to take on new risk. Risk ratios are regularly verified. Thanks to the public funds granted to its Funds and based on the significant leverage it allows, IFCIC has become a preferred partner for companies in the cultural industries, at minimal cost both to the State and to the final beneficiaries of the guarantee.
Loan guarantees for production and distribution
IFCIC guarantees loans to film and audiovisual producers and/or distributors whose activities make them eligible for CNC backing, for the production or distribution of European works [2] susceptible of attracting film investment or funding from the audiovisual production support fund. IFCIC guarantees close to two-thirds of the independent films produced each year.
Loan guarantees for companies in the cultural industries
When IFCIC was created, the scope of intervention was broadened from the core business of guaranteeing production loans to include all aspects of the culture industries. The goal was to provide extra support to small- and medium-sized companies operating in a sector deemed to offer a high profile of risk. This type of support is now more necessary than ever. This is why IFCIC recently overhauled the resources and management of its Fonds Industries Culturelles.
All companies registered in the EU and active in the culture industry are eligible for IFCIC guarantees. This includes the book industry (publishing, distribution and retailing), music (publishing, record and concert production), theatre (production, acquisition and fitting out of theatres), plastic arts and photography (galleries and studios), art-related businesses (production and sale), heritage (development and restoration), architecture (firms), multimedia (production, publishing and technical services), press (political and general information and specialised cultural publications), cinema operation and the technical industries (camera and sound).
2. Loans and advances
On top of loan guarantees, IFCIC also provides loans and advances granting services for sector companies working in the following sectors: Music industry, Fashion design, Press, Film exportation, Bookshops, Art galleries.
In respect with its mission of public interest, IFCIC direct loans also aim at making it easier for sector companies to access financial banking: direct loans are typically granted either when the ability of a company to raise money on the banking market is hard to achieve or when money raised by the company is insufficient in amount. IFCIC direct loans are unsecured (no guarantee, security, mortgage or insurance are required) so that all securities remain available to banks for further or parallel engagement. IFCIC direct loans are solely granted to SMEs, according to the EU definition.
IFCIC Prize for the young independent production company
Created in 2004, the €10,000 annual prize rewards a young independent company that successfully initiated or achieved a feature-film preparation, financing, or producing. The company must have benefited from IFCIC's guarantee during this project.
Laureates since its creation : TS Productions (2004), Les Productions du Trésor (2005), Elia Films (2006), La Mouche du Coche (2007), les Films du Poisson (2008), 2.4.7. Films (2009), The Film (2010), Origami Films (2011), Lionceau Films (2012), Dharamsala (2013), Lilies Film (2014) et CG Cinéma (2015).
IFCIC Prize "Entreprendre dans la culture"
Created in 2016 in association with the French ministry of Culture, the Prize rewards cultural entrepreneurs (companies or associations) that developed an innovative, remarkable, responsible and/or sustainable business model or form of organization. It aims at highlighting creative forms of entrepreneurship and supporting as well as magnifying such initiatives in the cultural field.
With a total of €20,000 €, the Prize also grants the rewarded companies with IFCIC's tailor-made support and advises on financing issues, as well as the French Ministry of Culture's expertise on cultural development.
2016 Laureates : Bandsquare, Histovery, Les éditions Zulma, No Format, NoMadMusic.