Atlanta-based SouthCrest Bank announces the closing of a special loan under the Georgia Entertainment Industry Investment Act to support the new Sprockerfeller Films and 2020 Productions comedy “The Divorce Party,” which has just completed filming in Savannah.
SouthCrest Bank is providing partial production funding for qualified movie-makers under the Act, which was passed in 2008 to give limited tax credits to production houses shooting in Georgia. SouthCrest Bank provides advance loans against those credits to enhance the studios’ cash flow during shooting.
Atlanta-based entertainment attorney Andrew Velcoff, with the Greenberg Traurig firm, represented SouthCrest on this transaction.
“We’re bullish on the movie industry in Georgia,” declared Brian D. Schmitt, President and CEO of SouthCrest Financial Group Inc. and SouthCrest Bank. “Stepping up to help fund these productions is a great way SouthCrest Bank can get top producers and directors to look more closely at Georgia when they are considering shoot locales. It’s a win-win for the production house, the investors and the people of the State of Georgia.”
“SouthCrest came through for us fast on a project with a lot of moving parts,” declared Ryan Johnson, executive producer. “We look forward to working with them on our future Georgia projects. They are a bank you can rely on to deliver.”
Schmitt explained that SouthCrest intends to increase its exposure to the film industry by originating additional loans against Entertainment Tax Credits both directly and through loan participations. “In addition, we will provide treasury management services to the productions we finance, and also will solicit banking products and services to the businesses supporting the film industry in our markets,” Schmitt added.
H. Russell Holland, Chief Credit Officer at SouthCrest, who launched the bank’s special funding program under the Act, said it is estimated that movie productions in Georgia had an overall economic impact of more than $6 billion to the state in 2015.
“As a Georgia business, we want to do all we can to help grow jobs and stimulate the Georgia economy, and with our loan program under this Act, we hope we are doing just that,” said Holland. “I personally love to go to the movies and see Georgia featured on the silver screen!”
Holland explained that SouthCrest intends to position itself as Georgia’s leading provider for entertainment tax credit funding for feature films with budgets ranging from $1 million to $15 million.