In the midst of ongoing dialog between the EU and the United Kingdom, who last week voted to exit the European Union, it has been announced that a new program is to be formed from which over €121million will be invested into small to medium sized entertainment companies in each of the member states.
The main purpose of the program will be to guarantee business loans for smaller media companies in the audiovisual sector, something the EU believes could generate upwards of €660million in loans for entertainment companies in the next 6 years.
The program, funded by the European Investment Fund, will launch on July 1st and will support all types of audiovisual media from film to video games.
European Commissioner for the Digital Economy and Society, Gunter Oethinger, said the following regarding the plan:
“Creative minds and companies need to experiment and take risks to thrive, for our society and for our economy. We are helping them to get the bank loans they would normally not get.”
As of this moment it is unclear whether UK based companies will still be able to benefit from the fund as the nation remains a member of the EU for the time being,
The program’s budget comes from the EU’s €1.46billion Creative Program which is to invest the funds into the region’s creative industries over 7 years from 2014-2020. According to statistics released by the European Union, the creative and cultural sectors of the region account for 4.2% of the area’s overall GDP and provides jobs to over 7 million people.