This is a loan used to support young people in the Creative/Performing Arts.The applicant may be an individual, registered group, partnership or companies owned and run by youth. The applicant may use the loan for working capital or to purchase talent related equipment.
Features
Youth can access up to Kshs. 2 Million. It has no interest but a management fee of 5% of the loan amount will be deducted at disbursement.
Loans amount up to Kshs. 300,000 will be secured using chattels and assets to be purchased. Loans above Kshs. 300,000 will be fully secured using conventional securities. Youth must have 2 guarantors one of whom must be in the industry.
Repayment period
The repayment period is as follows:
For contract financing the maximum duration is 6 months, for equipment and accessories purchase the maximum is 2 years while the budgeted recording, production or performance offers a maximum of 3 months.
Amount financed
The finances required for film is not more than 70% of the value of the contract, for equipment and accessories is not more than 70% of the cost while for the budgeted recording, production or performance is 90% of the total budget.
Qualifications
In order to qualify for the loan, one must be registered with the relevant authorized body (e.g for music, Music Copyright Society of Kenya) and must have a valid contract where applicable.
For music, one must have evidence of recorded audio or video or evidence of work in progress and must have a budget accompanied by invoices or quotations where applicable.
An individual also requires undertaking by contracting entity to pay the proceeds to Youth Enterprise Development Fund,2 guarantors who must provide bank statements, one of whom must be operating in the industry. However, in the absence of this, the applicant must provide conventional security.
