Lending firm offers P3M for Cebu's creative sector

CEBU, Philippines - Government financial institution SB Corporation has released a P3 million special lending window for creative entrepreneurs in Cebu.

Department of Trade and Industry Cebu Provincial Office (DTI-CPO) director Nelia F. Navarro announced that the lending window is just an initial lending facility to test the capability of creative players to avail of the credit lines from government financial institutions (GFIs) like the SB Corporation.

At present, Navarro said a lot of creative players have yet to properly register their small businesses; however, she is confident that more and more creative industry players will be able to take advantage of different funding and technical support, as Cebu has been recognized as the Creative City in the Philippines.

Initially, Cebuano musical artist Ian Zafra will be the first beneficiary of the loan, as his business called "Cartonata" will get a share of the P3 million lending facility. Navarro mentioned that Zafra's proposal required P500 thousand funding.

She said DTI and SB Corporation are now reviewing Zafra's proposal and will serve as the benchmark.

This special lending window is the first credit facility offered by a GFI or the SB Corporation to the country.

The creative sector in Cebu, led by the Creative Council of Cebu, submitted a proposal to SB Corporation last year to get funding support.

The Council, with the help of the DTI-CPO, asked SB Corporation to include the sector in its priority list for beneficiaries of the state-run funding institution.

Normally, SB Corporation's available credit facilities are mostly merchandise-based-something that is tangible, which does not usually apply to the different requirements of the creative industry.

According to Navarro, the creative industry in Cebu has unique edge in making its way to compete globally, considering the availability of rich talent here.

However, players need to have access to capital in order to expand and pursue projects especially those that need capital infusion.

A 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.

Cebu's creative industry is now led by the Creative Cebu Council, a non-profit group which is an alliance of artists and creative entrepreneurs aiming to promote, develop and champion the creative industries sector in Cebu.

The potential of Cebu's creative sector was confirmed following the British Council's proclamation of it being a "Creative City" a couple of years back.

Navarro mentioned that there is a good creative support model in the United Kingdom that is under study which can also be applied in the Philippine setting. This will determine the factors on how to effectively support the creative industry.

A survey from the Intellectual Property Office (IPO) showed that the creative sector in the Philippines is contributing US$592 million or 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 industry included in the sector.

Initially, the Council enlisted nine sub-sectors in the creative industry in Cebu, namely advertising and design; animation; architecture and landscape; film and photography; literature and publishing; multi-media arts; music; theater and performing arts and visual arts group. /JMD (FREEMAN)