in.MANTRA (1):
WARNING -- Continue reading . . . only if you're seeking info on film financing, i.e., the legislative bill (state of Texas) which will establish a $50 million fund to guarantee bank loans for low-budget independent productions.
30.Zap Special for Tuesday -> March 9, 1999.
Backstory. It's generally understood . . . that American banks are reluctant to offer loans to filmmakers due to the high default rate of such investments. In other words, loan officers prefer to collateralize their loans with some sort of guaranteed payback method, i.e., if there's a default . . . then the bank wants a low-risk mechanism to recover the loaned-out funds.
Therein, one of the major hurdles for low-budget filmmakers to overcome . . . is to find the upfront financing in order to make their films. Normally, when a financial institution lends money . . . the loan officer wants the bank to be paid back . . . preferably with a profit.
Okay, screenwriters. What does this mean to your bottom line?
Well, if independent filmmakers can't get funding . . . then they can't shoot a "quality" story. Also, if a filmmaker has to "beg" financing form a major studio . . . then that gives the "big boys" leverage over the process of what films get made. In other words, even if a talented filmmaker has a wonderful screenplay, has crunched the budget, has figured out a way to shoot a $10-million movie on a $2.5-million budget (e.g., DANCER, TEXAS . . .) then that doesn't mean the movie will be made . . . because unless the producers can raise the money to finance the production . . . the camera will never roll.
Hey, screenwriters. Do you comprehend the bottom line?
So, um, if an independent filmmaker can't get financing form a bank, studio, European distributor . . . or persuade enough well-heeled small investors (dentists, doctors, lawyers) to pony up $10,000 . . . then the auteur's "wonderful" film will not be made, i.e., the screenwriter's vision won't be realized.
But wait.
There's a "Syd Field" plot point, i.e., a twist.
Perk up and pay attention.
This is important.
As scooped in this column last week . . . there's a legislative bill (Texas, HB 1687) in the works . . . which would be a huge "boon" to Texas filmmakers.
The author is Rep. Hunter from Abilene. The bill is up for a hearing on March 23. Paraphrasing and quoting from the "Texas Legislature Online - Bills By Subject - Motion Picture & Recording Industry - 76th Legislature" --"Relating to a state program of loan gurantees to promote the film industry in this state; providing a penalty."
Note: this "film-friendly" bill may run into opposition, i.e., it may be amended by other legislators . . . or killed.
Doc's advice -> Don't get your hopes up just yet. Legislative bills are shot down right and left. It's called "politics."
Nevertheless, if the main points of this bill do pass . . . then this new funding stream will bring joy to screenwriters who've designed "Texas" stories per low-budget parameters.
Disclaimer: What follows is not a "legalized" analysis of Rep. Hunter's bill. Rather, the info presented here . . . is sort of a short synopsis of the main "beats" of the bill as it's presently written. This Website does not offer legal advice or legislative analysis in the formal sense of such.
Simply put -- the info presented herein is a "heads-up" insight into what screenwriters might want to consider in the pursuit of their writing careers.
A rough paraphrasing/quoting of H.B. No. 1687 -- focusing on the VIP "beats" --
Sec. 481.601.(1) (B) -- the bill will cover films where "the budget for the total cost to produce the film is at least $1 million but not more than $5 million."
Sec. 481.604. (b) -- "The department may not make a loan guarantee except on approval of a qualified application submitted by a Texas film producer with the approval of a Texas lender who has agreed to make a qualified Texas film production loan to the producer."
(d) -- "The guarantee amount provided by the department under this subchapter may not exceed the lesser of: (1) 80 percent of the total amount of the Texas film production loan; or (2) $2.4 million."
Sec. 481.613 -- "LIMITATIONS IN PROGRAM. Not more than $50 million of guarantees issued under this program may be outstanding at any one time."
Okay, there it is. A quickie insight.
Remember . . . you read it here first.
And, like, if you have no clue as to the importance of such a bill to Texas screenwriters, i.e., if you don't believe that this proposed bill, if passed, will be a watershed for Texas filmmaking . . . then call any film-producer professor at one of the major film schools . . . and proceed to ask if any other state has such a taxpayer-funded loan-guarantee program.
Note: "in.guru" and/or "in.MANTRA" . . . will offer updates on HB 1687 -- if and when such info becomes available to this Website.
Enjoy the journey.
Doc's advice -> click on -> "in.MANTRA (2)."
30.Zap Special for Tuesday -> March 9, 1999.
Backstory. It's generally understood . . . that American banks are reluctant to offer loans to filmmakers due to the high default rate of such investments. In other words, loan officers prefer to collateralize their loans with some sort of guaranteed payback method, i.e., if there's a default . . . then the bank wants a low-risk mechanism to recover the loaned-out funds.
Therein, one of the major hurdles for low-budget filmmakers to overcome . . . is to find the upfront financing in order to make their films. Normally, when a financial institution lends money . . . the loan officer wants the bank to be paid back . . . preferably with a profit.
Okay, screenwriters. What does this mean to your bottom line?
Well, if independent filmmakers can't get funding . . . then they can't shoot a "quality" story. Also, if a filmmaker has to "beg" financing form a major studio . . . then that gives the "big boys" leverage over the process of what films get made. In other words, even if a talented filmmaker has a wonderful screenplay, has crunched the budget, has figured out a way to shoot a $10-million movie on a $2.5-million budget (e.g., DANCER, TEXAS . . .) then that doesn't mean the movie will be made . . . because unless the producers can raise the money to finance the production . . . the camera will never roll.
Hey, screenwriters. Do you comprehend the bottom line?
So, um, if an independent filmmaker can't get financing form a bank, studio, European distributor . . . or persuade enough well-heeled small investors (dentists, doctors, lawyers) to pony up $10,000 . . . then the auteur's "wonderful" film will not be made, i.e., the screenwriter's vision won't be realized.
But wait.
There's a "Syd Field" plot point, i.e., a twist.
Perk up and pay attention.
This is important.
As scooped in this column last week . . . there's a legislative bill (Texas, HB 1687) in the works . . . which would be a huge "boon" to Texas filmmakers.
The author is Rep. Hunter from Abilene. The bill is up for a hearing on March 23. Paraphrasing and quoting from the "Texas Legislature Online - Bills By Subject - Motion Picture & Recording Industry - 76th Legislature" --"Relating to a state program of loan gurantees to promote the film industry in this state; providing a penalty."
Note: this "film-friendly" bill may run into opposition, i.e., it may be amended by other legislators . . . or killed.
Doc's advice -> Don't get your hopes up just yet. Legislative bills are shot down right and left. It's called "politics."
Nevertheless, if the main points of this bill do pass . . . then this new funding stream will bring joy to screenwriters who've designed "Texas" stories per low-budget parameters.
Disclaimer: What follows is not a "legalized" analysis of Rep. Hunter's bill. Rather, the info presented here . . . is sort of a short synopsis of the main "beats" of the bill as it's presently written. This Website does not offer legal advice or legislative analysis in the formal sense of such.
Simply put -- the info presented herein is a "heads-up" insight into what screenwriters might want to consider in the pursuit of their writing careers.
A rough paraphrasing/quoting of H.B. No. 1687 -- focusing on the VIP "beats" --
Sec. 481.601.(1) (B) -- the bill will cover films where "the budget for the total cost to produce the film is at least $1 million but not more than $5 million."
Sec. 481.604. (b) -- "The department may not make a loan guarantee except on approval of a qualified application submitted by a Texas film producer with the approval of a Texas lender who has agreed to make a qualified Texas film production loan to the producer."
(d) -- "The guarantee amount provided by the department under this subchapter may not exceed the lesser of: (1) 80 percent of the total amount of the Texas film production loan; or (2) $2.4 million."
Sec. 481.613 -- "LIMITATIONS IN PROGRAM. Not more than $50 million of guarantees issued under this program may be outstanding at any one time."
Okay, there it is. A quickie insight.
Remember . . . you read it here first.
And, like, if you have no clue as to the importance of such a bill to Texas screenwriters, i.e., if you don't believe that this proposed bill, if passed, will be a watershed for Texas filmmaking . . . then call any film-producer professor at one of the major film schools . . . and proceed to ask if any other state has such a taxpayer-funded loan-guarantee program.
Note: "in.guru" and/or "in.MANTRA" . . . will offer updates on HB 1687 -- if and when such info becomes available to this Website.
Enjoy the journey.
Doc's advice -> click on -> "in.MANTRA (2)."
