Cabinet to discuss establishing a Creative Industries Fund

By on 09/12/2011 in News
Plans for the establishment of a £5m Birmingham City Council Creative Industries Fund are to be discussed at a Cabinet meeting on 12th December 2011. 
 
The Creative Industries Fund will be part of the City Council's business support package to assist local creative companies who have sustainable plans to grow their business and create new employment opportunities thereby contributing towards the economic growth and prosperity of Birmingham.
 
 It will to deliver this by helping creative companies improve their access to finance overcoming a key barrier to the growth for such companies. The Fund would have an average equity of investment of £150,000 to £200,000 which would be spread over an investment period of five to seven years. 
 
The Fund if approved, will complement the existing £10.5m City Council Business Loan Fund and £10m Equity Fund all of which provide vital support to local businesses. Along with the other City Council Funds this new Fund is to be managed and delivered by Finance Birmingham Ltd.

 Councillor Tim Huxtable, Cabinet Member for Transport, Environment and Regeneration said: “Creative industries are vital to the local economy and providing them with the much needed funds would create new employment opportunities by improving finance, thereby helping to increase the city's economic output.”  
 
 Creative industries are recognised as making an important contribution to economic growth with many creative companies also offering social and cultural benefits which help to enhance the identity of Cities. 
 
 
Like any other businesses, creative companies need access to finance to fund their growth. However, they continue to face particular challenges in securing access to finance because investors fail to understand the nature of their businesses, many lack tangible assets with collateral being held in the form of intellectual property.

ENDS

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