Vancouver: British Columbia Film’s funding programs will undergo a major restructuring intended to simplify the application process and better align the agency with the commercial needs of the market.

The restructuring – which changes the nature of investment for established and emerging filmmakers in b.c. – takes effect Sept. 1, with a transition period continuing until the end of the year.

Wayne Sterloff, president and chief executive officer, says the existing nine programs are cumbersome for both indigenous producers and British Columbia Film staff.

‘The policy shifts will reduce the number and complexity of programs and streamline the administrative process for those producers who have secured a demonstrated market in the form of pre-sales,’ says Sterloff.

‘Our activities are a response to the changing b.c. realities with clearer, more relevant criteria and also intensified work with emerging professionals,’ he says.

The new programs fall into two basic categories – the Market Incentive Program (mip) and Applied Support Program (asp) – that are broken down further into the aspects of development and production.

MIP Production offers a grant – or a ‘non-recoupable advance’ – the amount of which is determined by the value of eligible pre-sales and broadcast licences.

No longer will British Columbia Film take an equity position in the projects of established independent producers working in b.c.

However, mip money is dependent on a number of criteria. For example, 75% of the total production budget of an approved project must be spent on salaries, wages, goods and services within b.c. Service productions are ineligible.

MIP Production funding can total: up to $250,000 to a maximum of 25% of the eligible pre-sales for a feature film or long-form project destined for network or pay television or video; up to $75,000 per qualifying episode or $800,000 to a maximum of 35% of the eligible pre-sales for a television series; up to $40,000 to a maximum or 100% of the eligible pre-sales for television productions of less than 75 minutes.

MIP Production also introduces a point system for b.c. content – modelled after Cancon rules – to ensure British Columbians get the above-the-line jobs.

And while funding is assigned to a project, the use of the money will no longer be proscribed by British Columbia Film.

That means a producer can use mip money, for example, as production financing, cash flow, or as a reward for investors.

‘Recoupable’ advance

Meanwhile, MIP Development will provide b.c. producers with a non-interest bearing ‘recoupable’ advance of up to $20,000 that matches financial commitments by broadcasters and distributors.

The loan is repaid in full on the first day of principal photography, or when the project is optioned, sold, transferred or assigned to a third party.

Sterloff says the Applied Support Program recognizes that new filmmakers may not have the resources to secure pre-sale financing for projects and need assistance to get the projects up and running.

In ASP Production, British Columbia Film offers a repayable loan or secures a ‘first-tier’ equity position, an improved creditor position than in previous programs.

The agency will also work with the producers to create a commercially viable product, one that will allow British Columbia Film to eventually get its money out.

Absorb programs

ASP Production will absorb specialty programs such as New Views and Laugh Chance!, which funded new producers through a competitive process.

Sterloff says British Columbia Film will now ‘remain open all year to new ideas.’

In ASP Development, British Columbia Film offers an interest-free loan and takes a hands-on approach by assisting in the costs of development, selecting a story editor, co-ordinating test market and workshopping services, determining market demand and providing resource information for identifying key end-users and potential producing and financing partners.

Like MIP Development, the loan is repaid in full on the first day of principal photography, or when the project changes hands.

Julia Keatley, a Vancouver producer and chair of the government relations committee for the b.c. branch of the Canadian Film & Television Producers Association, says the restructuring is a positive step forward for the local industry.

The new structure removes ‘cross-collateralization,’ which is a repayment schedule that often penalized successful producers and encourages Keatley to approach British Columbia Film once again herself.

‘[The restructuring] should allow us to build a base for local production, increase spin-offs and create more work,’ Keatley says. ‘We must have policies that support producers in this province.’

To the taxpayer, Sterloff says British Columbia Film is in a more secured position under the new regime and is better positioned to invest in the film industry infrastructure that has a greater long-term return.

He says by letting the seasoned pros conduct their businesses basically unobstructed and undertaking a tutorial role for debuting artists, British Columbia Film is in better position to manage risk.

Founded in 1987, British Columbia Film has committed nearly $1.3 million to the research and development of screenplays.

It has also committed more than $30 million to 69 television programs, 49 feature films and 57 non-theatrical productions.

The agency estimates it earns an annual return of about 20% on its equity placements.