Marginalen Bank is launching the Creative Loan with the support of a guarantee from the EIF (European Investment Fund) under the Juncker Plan. A total of SEK 200 million will be lent to companies active in the cultural and creative industries. The loan amount is between SEK 100 000 and 1 million with an EIF guarantee of 70 %.

Marginalen Bank is the first bank in Sweden to offer EU-guaranteed loans to companies in the cultural and creative industries (CCIs). This opens the door for many entrepreneurs who have previously been partially excluded from traditional bank financing. It is now possible to borrow between SEK 100,000 and SEK 1 million, with the EIF guaranteeing 70% of the loan amount, thereby reducing the collateral requirements for the entrepreneur.

Sweden is a prominent entrepreneurial and cultural nation, known for its music, design, architecture, fashion, art and computer game development. However, these groups have often struggled to finance their businesses. The guarantee and the Kreatörslånet provide them with new opportunities to develop and realise their creative ideas and businesses. In the long run, this will contribute to growth and increased employment, says Ewa Glennow, CEO of Marginalen Bank.

Studies from the Swedish Agency for Growth and Employment (Tillväxtverket) and others show that entrepreneurs in the KKN sector describe the lack of financing as a significant obstacle to growth and international expansion. This is the background to the EU, through the EIF, set up the loan guarantee under the Creative Europe programme, which has already been implemented in several European countries.

Entrepreneurs in some creative sectors are more often dependent on public funding and grants. Collateral in these companies is often more complex to assess, which has led to difficulties in obtaining funding.

Sweden is the 10th country to participate in the Cultural and Creative Industries Guarantee Programme. I am delighted with this development. It will facilitate access to finance for many creative projects. These industries are central to our economy, create wealth, stimulate development and contribute to diversity, cultural heritage and a common understanding of Europe's identity and values. And that is why we must support them in every way," said Mariya Gabriel, European Commissioner for the Digital Economy and Society.

Sweden has a world-leading position in the cultural and creative industries and I am very pleased to have signed the first Swedish guarantee agreement with Marginalen Bank. The guarantee creates the conditions for the rest of Europe to benefit from new and exciting music, art and other creative expressions from Sweden," says Pier Luigi Gilibert, EIF Chief Executive.

The guarantee for activities in the cultural and creative industries (CCIs) allows Marginalen Bank to build up a loan portfolio of up to SEK 200 million over three years.

The total amount guaranteed by the EIF to Marginalen Bank under the guarantee amounts to SEK 35 million. This is the fourth EIF programme granted to Marginalen Bank and is a central part of the bank's long-term commitment to helping small and SMEs to grow and develop.

Facts about the Creative Loan
Business loans for cultural and creative activities Loan amount: SEK 100 000-1 000 000
Collateral: 70% of an individual loan is guaranteed by the European Investment Fund Launch date 3 October

Facts about creative industries
According to Tillväxtverket, the creative industries in Sweden had a total turnover of approximately SEK 385 billion in 2016 and employed 187,000 people.

Background information
Marginalen Bank Bankaktiebolag (publ) is part of the consolidated situation of ESCO Marginalen and is under the supervision of the Swedish Financial Supervisory Authority. Marginalen Bank, which is certified according to ISO 9001:2015, offers individuals and companies simple and transparent banking services in the areas of loans, savings, cards and insurance. Marginalen Bank's savings accounts are covered by the state deposit guarantee. The group also includes Marginalen Core, which offers legal, debt collection, financial administration and HR services to companies and public authorities. Marginalen Bank is in turn a parent company of the Group, which was formed when the subsidiaries Sergel Finans AB, Sergel Finans Oy and Sergel Finans AS were acquired from Telia Company in June 2017. The finance companies own and acquire credit portfolios in their respective countries. Marginalen Bank has approximately 350 employees located in offices in Stockholm, Borås and Sundsvall. The owner is the parent company MarginalenAB.

EIF is a multilateral development bank owned by the European Investment Bank EIB, the EU and 24 European banks. The EIF's activities aim to strengthen opportunities for for help companies obtain finance which in turn can create more jobs within theEU.

Creative Europe is a seven-year programme (2014-2020) designed to support the creative and cultural sectors. It has a budget of €1.46 billion over the period. It consists of the Media sub-programme, which helps develop and distribute European audiovisual works, and the Culture sub-programme, which supports initiatives in the cultural sector and promotes transnational partnerships or platforms for new artists.

Guarantor for cultural and creative industries is a cross-sectoral component of the Creative Europe programme and is the first EU investment instrument with such a broad scope in the NCC. It has the same objectives as the of the European Investment Fund (EFSI), which drives the investment plan for Europe: to increase lending to small and medium-sized enterprises to enable to scale up their activities.

Investment plan for Europe – Juncker Plan - focuses strengthening European investment to create jobs and growth. This will be done through a smarter use of new and existing removing barriers to investment and providing visibility and technical assistance to investment projects. strategic investment (EFSI) is the central pillar of the Juncker Plan. It provides a first-loss guarantee that allows the EIB to invest in more, often riskier, projects. In May 2019 the projects and contracts approved for under EFSI will mobilise EUR 433bn in investment and support to some 972 000 small and medium-sized enterprises enterprises in all 28 Member States. To see the latest EFSI figures by sector and by country, see here, or see our frequently asked questions and answers.

For more information
Marginal BankAnders Karlström, Head of Communication, +46 707353677, anders.karlstrom@marginalen.se
EIFTimSmit, +352 691 286423, t.smit@eib.org
European CommissionSiobhan Millbright, Tel: +32 (0) 229 57361 or e-mail siobhan.millbright@ec.europa.eu