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| Services | |
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RII will offer the following four types of services:
Start-up Services: provided by RII and its affiliates are geared towards helping independent filmmakers improve their chances of securing a pre-sale contract, which can be used as collateral to secure a loan. Services that fall under this category will include but not be limited to: Providing resource contact lists with reputable sales agents, distributors, attorneys, websites and recommended organizations to join. RII may provide co-payments for consulting service expenses. An approved filmmaker or content provider may be granted up to 50% of the costs towards consulting services with a ceiling of $5,000. Expenses will be pre-approved by RII and may include one or more of the following elements of development and pre-production:: writing a business plan, developing a production budget, costs related to advertising, marketing and public relations activities, legal fees required for negotiating and preparing contracts, presentation preparations, grant writers, or other relevant start-up costs. Any filmmaker or content developer that receives a grant must agree to use RII as their lender or investor after a pre-sale transaction is secured and RII will have the first right of refusal on the ultimate funding of the production of the content. Production Financing: backed by pre-sales, will be provided to qualified filmmakers or content developers to cover a portion of the cost to produce the film or content. Film’s and/or media content with production budgets in the range of $500,000 to $2,500,000 will be considered. The maximum amount of funding for any project will be $500,000. Qualifications for a production loan include meeting RII’s content eligibility requirements, obtaining a RISE and all other RII underwriting criteria. A typical loan of $500,000 will have an application fee of $300, a 2% loan origination fee, and an interest rate of prime plus 2%. For smaller loans the loan origination fee and interest rates may be slightly higher. Pre-payments will be tied to the collateralized sales contract (i.e. delivery of the film or content). The maximum term is 18 months. Gap Financing: backed by a sales estimate of the unsold rights of the film from a reputable sales agent will be considered for qualified filmmakers. RII will provide GAP loans of not more than 20% of the total production budget, but not greater than $500,000 per project. Sales estimates must cover 200% of the value of the GAP loan. The typical GAP loan will have a term of 24 months, an application fee of $300, a 3% loan origination fee and an interest rate of prime plus 2%. RII’s GAP loan will only be subordinate to other financing based upon hard collateral and will be repaid on a priority basis out of first dollars generated after pre-sales contracts. Qualifications for a GAP loan include meeting RII’s content eligibility requirements, obtaining a RISE and all other RII underwriting criteria. Equity Investments: in amounts of up to $500,000 per project will be considered on a case-by-case basis. Return on investment and security considerations while negotiable will reflect industry standards and will mirror the underwriting criteria established for debt transactions- specifically meeting all of RII’s content eligibility requirements, obtaining a RISE and any and all other RII underwriting criteria. The costs to the borrower, or seeker of funding from RII is competitive with lending and investment industry standards for film and content financing. Financing and equity investments will be considered and provided on a “project-by-project” basis and the terms and conditions of any loan or equity investment will vary according to the project and will be adjusted to reflect market conditions and the inherent nature and risk of the specific project. Educational Outreach: it is the intention of Reel Image, Inc. to fund the production of a slate or series of films that are of historic significance and that heightens the awareness and education of the public to lost chapters of factual events that emphasize the important contributions that have been made by minorities, people of color and women throughout history. As part of its educational outreach strategy, Reel Image, Inc. would like to donate copies of these types of films to selected Charter schools, High Schools, Colleges and Universities, so that these historical achievements can be studied and added to course curriculum. |
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