NEW YORK/ATLANTA/STAMFORD ‐‐ EFA Partners, an entertainment financial advisory firm that provides financing solutions for movie exhibitors, and Infuse Commercial Capital, a specialty finance company that creates tailored finance programs for small and middle market firms, announced that they have jointly created a program that offers favorable financing terms for smaller movie exhibitors seeking viable financing alternatives for their digital cinema conversion.
The program is highlighted by offering loans up to $2 million that can finance up to 100% of the digital cinema equipment cost. Loan repayment is over 10 years, much longer than terms typically offered in the current market, and interest rates are very competitive. In addition, loan processing is streamlined with an approval process that takes less than two weeks and a loan closing process of 30 to 45 days.
Such favorable terms are achievable via the program's utilization of loan guarantee programs offered by the U.S. Small Business Administration. The SBA provides these as inducements for lenders to offer loans that may not otherwise be available on terms favorable to smaller businesses.
As the EFA/Infuse team created the program, they worked closely with Cinedigm Digital Cinema Corp. (NASDAQ: CIDM), the leader in digital cinema services. "EFA and Infuse have created a financing solution that is excellent for the smaller movie exhibitors and the program fits well with our exhibitor self‐financing program," said Bud Mayo, President and CEO of Cinedigm. "With Cinedigm as the selected integrator of the National Association of Theatre Owners' Cinema Buying Group (CBG) which has hundreds of small and independent exhibitors representing approximately 7,000 screens, we believe that the EFA/Infuse program is an excellent opportunity for CBG members to access favorable financing for their digital cinema conversions."
EFA and Infuse understand that the larger movie exhibitors have more access to financing for their digital cinema conversions while such financing has been a struggle for the smaller exhibitors in the current economic environment. The EFA/Infuse program will allow these exhibitors the ability to convert to digital with favorable financing terms and take advantage of all that digital cinema offers including 3‐D movies and alternative content such as sporting events and concerts.
"It is vital for a healthy movie theater industry that digital cinema should be accessible for small, mid‐sized and large exhibitors," said John Fithian, President of the National Association of Theatre Owners. "The EFA/Infuse program allows the small exhibitors to obtain competitive financing terms that have not been readily available and we applaud this effort."