Money matters

It has been about 5 years since the U.S.-based Independent Press Association (IPA), which has some Canadian members, began making loans available to member magazines. So far, it says, it has loaned out $1 million. Typically the money is used to finance direct mail circulation-building campaigns and come with an interest rate of 7% and a 24 month term. There are also emergency bridging loans available to magazines that are clients of IPA associated Big Top Distribution. As far as is known, there is no similar loan program in Canada.

A number of years ago, a survey conducted among small- and medium-sized magazines indicated that there was little appetite for taking on debt and naturally (and historically) much more interest in grants. The U.S., of course, has no equivalent of the Canada Magazine Fund. But there is some nervousness out there that, soon, neither may we.

Ontario is apparently stalled on extending a tax credit scheme to magazines similar to that it offers to books, film and other media. Would a loan guarantee system through the Ontario Media Development Corporation be possible? Or even desirable?