No credit has been extended to music start-ups by high-street banks of the £1.3 billion made available over 2009 as part of the government’s Enterprise Finance Guarantee (EFG).
UK Music and Radiohead co-manager Brian Message have been investigating the EFG, which can guarantee up to 75% of loans to small and medium-sized businesses. Message has stated that banks consider music ventures too much of a risk. After a trial involving one of his own bands, the Rifles, he identified several issues facing artists in particular, such as the need for applications to be based on UK trading, ruling out tour support for performances abroad.
Against the backdrop of a rapidly shifting commercial landscape, UK Music argues that the British music industry needs innovative grassroots companies now more than ever, and that access to state funding is a critical part of encouraging this.
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