DTI proposes credit facility for Cebu's creative sector

CEBU, Philippines - To further develop the potential of Cebu’s creative industry, the Department of Trade and Industry Cebu Provincial Office (DTI-CPO), together with the Creative Cebu Council, has submitted a proposal to state-owned financial institution SB Corporation to provide credit facility to the creative sector.

DTI-CPO director Nelia F. Navarro said that once the proposal is approved, members of the creative sector may be able to get financial assistance just like what other sectors have been enjoying.

Navarro said the proposal was already submitted to SB Corporation last September, and she expressed confidence that the agency will consider the request.

At present, SB Corporation’s available credit facilities are mostly merchandize based — something that is tangible, which do not usually apply to the different requirements of the creative industry.

Navarro assured that if the proposal will be granted, more creative players in Cebu will be able to avail of the financial assistance, as long as they are members of an organization, or member of the Creative Cebu Council.

In fact, she added that there is a good creative support model in United Kingdom that is being studied, that can be applied in the Philippine setting, on how to support the players in the creative sector.

A government financial institution (GFI) attached to the DTI, SB Corporation provides direct financing for small enterprises in need of additional capital for expansion, equipment acquisition, factory renovation, working capital as well as local and international receivables. 

Other financial programs include credit guarantees, wholesale lending for SMEs, wholesale lending for graduating micros and wholesale micro-finance.                    After the proclamation of Cebu as the “Creative City” by the British Council, an organization of creative industry stakeholders was created—the Creative Cebu Council, a non-profit group of artists and creative entrepreneurs who have bonded together to promote, develop and champion the creative industries sector in Cebu.

Since the creative industry is so broad, Navarro urged creative players to register with the organization, or present themselves at the DTI-CPO office in order to avail of the support from the government, as well as other international development agencies of which programs are geared towards developing the potential sector.

DTI-CPO and other members of the Creative Cebu Council have already availed of some of the international grants for training and exposure in other countries to benchmarking, and other development programs for the creative industry.

“I would like to encourage the creative sector players in Cebu to be proactive. We can only do so much. I’d like to see more Cebuano creative people to come in the open, especially those who are doing sophisticated jobs for foreign clients and are only working from their homes,” said Navarro.

A survey from the Intellectual Property Office (IPO) showed that the creative sector in the Philippines is contributing US$592 million, with 5.2 percent of the country’s entire GDP. This does not include the creations made by non-IPO registered products.

Navarro said Cebu has to lead in the formulation of solid creative industry sector, although she is anticipating a challenging work ahead, considering the very wide scope of industries included in the creative sector.

Initially, the Council has enlisted nine sub-sectors in the Creative Industry in Cebu. These are the Advertising and Design; Animation; Architecture and Landscape; Film and Photography; Literature and Publishing; Multi-Media Arts; Music; Theater and Performing Arts; and the Visual Arts group. (FREEMAN)