SBA goes Hollywood, backs Indies

The U.S. Small Business Administration (SBA) is moving to open up new possibilities for funding independent films produced in the United States. Aida Alvarez, SBA Administrator, signed a partnership agreement with Marcie Setlow, President of New York Women in Film & Television (NYWIFT) at the group's luncheon in New York City. Meanwhile, in Los Angeles, SBA District Director Alberto Alvarado signed the identical agreement with representatives of two organizations that promote the film industry. Selise E. Eiseman, Program Director, signed on behalf of Los Angeles Women in Film. Barry C. Collin, president of the Independent Feature Film Producers, also signed the agreement.

"These partnerships herald a new relationship between SBA and the film industry," said Administrator Alvarez. "It will help small, independent film makers obtain much needed assistance to fund projects that might otherwise be abandoned or taken out of the country to produce at lower costs. These are U.S. dollars lost in wages, goods and services that normally would have been purchased from small businesses."

Study found movie makers were leaving the country
According to a 1999 study by the Screen Actors Guild (SAG) and Director's Guild of America (DGA), the loss to the American economy of producing these films in Canada and Australia was over $10 billion in 1998. "The SBA looks forward to working with various state governments in helping to promote independent films and generate jobs in the U.S. related to the film industry," said Alvarez.

SBA, particularly through its Los Angeles District Office, has been working to identify ways that the agency can assist independent filmmakers and the other small businesses that support them. "There is a vast, untapped potential of creative energy and ideas that could be unleashed with the help of the SBA," Alvarez said. "And this is only the beginning of the kinds of creative projects and products that could be eligible for SBA backing."

A crucial element of this loan project establishes intellectual property as eligible collateral to secure SBA guaranteed loans. This opens the door to funding for businesses involved in the creation of similar products or services to their clients, customers or audience, such as software, client databases, and business-to-business services.

The 1999 SAG and DGA study is available on line at www.dga.org/press/releases/1999/runaway.pdf.

To learn more about SBA's programs and services, visit www.sba.gov or call the SBA's Answer Desk at 1-800 U ASK SBA.

Edited by Bob Arguero, Managing Editor, GovCon