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Enhanced Film Funding

Our Enhanced Film Funding Program allows film makers the ability to obtain film funding with a minimal down payment of only 10%. And, we are able to offer a method of utilizing their film tax credits as funds that may be used toward the down payment on the loan, essentially making it a “Zero Down” funding option.

Program Highlights

- No up-front fees
- 10% minimum down payment required
- Tax credits may be monetized and utilized toward the down payment
- Non-personal recourse loan
- Currently 7.50% +- interest rate loan with 5 year term
- Principal and Interest repayment is deferred until film completion
- Loan/equity participation hybrid program
- Lender requires a 25% equity position in the project after the loan is repaid
- Lender fees and other costs are due at closing and may be built into the budget
- Closing in approximately 60 days – first major draw 15 days later
- Lender has over 25 years in the entertainment funding field
- North America, Puerto Rico and the UK filming locations only
- $5M to $30M loan amounts

Please note: The movie must be a financially viable product with a "bondable" producer in place, distribution worked out and other usual and customary basic financial movie project criteria. This is not an ”automatic” funding, and the finance group is looking to quality and viability of distribution and business plan.

Costs and Fees
- The lender requires 5% in total loan fees which may be built into the budget. It should be listed as 2 Executive Producers at 2.5% each.
- Also add into the budget a 1% Broker Fee for intermediaries.
- A Due Diligence fee of $15,000 will be due at funding and this also may be added to the budget. If the loan does not close the due diligence fee is paid for by the finance company.

Remember, no upfront fees, (except that the film maker is required to fund any tax incentive “pre certification” letters (such as required in Louisiana) and pay for any SPV formation costs in the respective states where the tax incentives are to be earned.) 

Tax Credits - (If Utilized Toward Down Payment Requirement
Our funding source works with a tax incentive lender of substance that is prepared to purchase the tax credits from the film producers in advance of the film being shot specifically for the use of the down payment requirement. The amount of monetization will be discussed with the producer prior to the closing. The tax incentive loan is against a purchase of that future value asset. That loan self extinguishes from the completion of the film.

Regardless of whether you bring the 10% investment or utilize the tax incentive approach, both are subject to producer’s “bondability” and our majority lender providing a binding commitment to fund the remnant of from 50% up to 90%.

Lenders Terms

The film lender’s loan (currently 7.5%+- annual interest rate) w/principal and interest is deferred during production. The film lenders Note is full recourse to the film enterprise Special Purpose Vehicle (SPV) and its financial receipts only (all receipts, both hard and soft, are administered by Fintage House), and is non-recourse to the principals.

Recoupment of principal and interest is 75/25 to the lender until satisfied, then 75/25 to filmmaker in perpetuity. The note may be prepaid at any time but interest for the entire year is due for any portion of a year in which the loan is open.

This is not a studio deal and we do consider slates.

If you feel your film project may fit these parameters and you are seriously seeking film funding then click here for more information on how to submit your film project for our initial funding review.

Of course you are welcome to contact us with any questions you may have.

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