Repayable soft loans
Subsidized loans to be repaid to the Fund must be provided for the implementation of projects and activities.
-The maximum loan amount from the Fund must be MNT 1,000,000,000.0 (one billion togrogs).
-The term of the loan to be disbursed from the Fund must be up to 3 years and the grace period must be up to 1 year.
-The interest rate of a loan to be issued in accordance with this regulation must be less than the minimum interest rate of the bank’s loan for small and medium enterprises.
The amount of credit to be provided for joint film production projects and activities must not exceed the expenses to be financed by Mongolian film producers.
Requirements:
Film producers and film productions wishing to receive loans from the Fund must submit their the documents depending on the projects and activities to be implemented:
Introduction of projects and activities;
Name, official address, address and location of the borrower;
Market research and economic calculations:
external and internal environment analysis (SWOT);
Estimation of film distribution and sales revenue;
calculation of production costs;
Project efficiency calculation;
Project risk prevention study or insurance coverage;
Investment and loan disbursement estimate;
Project return and investment payback period.
Introduction of previously implemented projects, activities and works;
Information on current activities and business;
Loan application, disbursement and repayment schedule;
A copy of the State registration certificate of the legal entity, reference of the founder, copy of the ID card of the director and film producer;
A copy of the State registration certificate of ownership and possession rights of the pledged immovable property and a reference on whether the immovable property is pledged;
If there is a normal loan balance, a loan agreement and a certified statement of the loan account;
Certified financial statements issued for the last 2 years, if established within 2 years, certified financial statements since its establishment, and initial balance sheet if newly established;
Tax reference for the last 2 years, if established within 2 years, tax reference since its establishment;
A statement expressing consent to publish information about the project and event implementer through mass media.
Film producers and film productions wishing to obtain loans for the introduction of technology, software and innovations aimed at improving the infrastructure required for film production must submit the following documents:
• Preliminary forecast of possible outcomes of the project, financial estimates, results to be achieved by implementing the project;
• Detailed project implementation plan;
• Information on the area and immovable property selected to implement the project;
• Other necessary documents and materials.
Film producers and film productions wishing to obtain a loan for the production of a film must submit the following documents:
• Introduction to the film;
• Information on the skills, experience and success of film producers and directors;
• Information and list of technical capacity and equipment for film production;
• Preliminary forecast of possible outcomes of the project, financial estimates, results to be achieved by implementing the project;
• Documents and agreements related to intellectual property and copyright.
Film producers and film productions must submit the original document in a foreign language with a translation. The applicant is fully responsible for the accuracy of the documents and materials, and it is possible to provide additional documents required during the selection process.
The Council must meet within 45 days after the deadline for receiving loan applications for projects and activities, discuss the proposals and requests that meet the requirements set forth in this regulation, make proposals and conclusions and submit them to the Cabinet member in charge of cultural affairs.