The purpose of the MEDIA Production Guarantee Fund is to partially guarantee loans made by banks in the MEDIA 2007 Programme territories to film producers to cash-flow film productions on the basis of "receivables", i.e. the discounting of contracts signed by the producer for example for the sales of the exploitation rights, grants, subsidies, etc.
Type of Guarantees
All guarantees provided by the MEDIA Production Guarantee Fund will be Partial Financial Guarantees.
Amount of Guarantees
No company, or group of companies, shall obtain more than 1.2 million Euros in guarantees.
The amount of the guarantee shall not exceed 50% of the related loan.
Fee Policy
A Study Commission: project cost evaluation in two installments:
· one variable (0.75% of the guarantee), applied only if the guarantee is finally approved and,
· one fixed, applied regardless of whether the guarantee is finally approved, and calculated as follows:
- 500 € for guarantees below 250,000 €
- 750 € for guarantees between 250,000 € and 500,000 €
- 1000 € for guarantees above 500,000 €
Commission on Guarantees: an annual fee charged for providing the guarantee, calculated as 1.5% of the guaranteed amount. Payable annually in advance, on the outstanding guaranteed amount.
Participating Contribution (reimbursable): according to Spanish law, the guaranteed company is required to become a shareholder of the mutual guarantee society (MGS). The minimum acquisition is 1% of the amount of the guarantee. Once the loan is repaid, this amount is reimbursed to the guaranteed company.
When are fees paid?
Study commission:
- Fixed: to be paid once the application is accepted for evaluation
- Variable: to be withdrawn from the related loan at the time of signature
Commission on guarantee: First year cost to be withdrawn from the loan at the time of signature.
Participating contribution: To be withdrawn from the loan at the time of signature.
Counter Guarantee
AUDIOVISUAL SGR, as manager of the MEDIA Production Guarantee Fund, establishes the following types of counter guarantees or indemnities for the recipients to obtain the guarantees requested:
Business counter guarantee: the applicant's own equity, taking as reference the solvency present at the time of application for the guarantee. This situation is called "No additional safeguards."
Personal counter guarantee: from third parties, whether natural or legal, whose solvency is evaluated by the assets declared at the time of application for the financial guarantee, or whenever the Executive Committee decides.
Pledged collateral: cash, property and rights, securities, deposits.
Rights, including exploitation and/or property of film negatives, artwork, vehicles, etc.
Transfers of credit: obtained grants, remuneration rights, etc.
FOR THE AUDIOVISUAL S.G.R. 
