Since 2011, the Mondriaan Fund has been working together with Fonds Kwadraat (formerly Materiaalfonds). Fonds Kwadraat is an independent foundation that enables talented artists and designers to take out an interest-free loan and in so doing helps the art sector to grow and become more professional. By investing themselves, artists will increase their economic and financial independence and help their artistic practices to grow and develop. Since its foundation in 1972, Fonds Kwadraat has financed around 1,800 projects for a total amount of almost 6,500,000 euros.
Mondriaan Material Fund
The Mondriaan Fund has set up a ‘fund registered by name’ in the Fonds Kwadraat. With the Mondriaan Material Fund, the Mondriaan Fund is looking into a more sustainable financing method for art, whereby amounts will be lent out and then repaid so that the money can be re-used for other projects. In this way, the Fund aims to give professional visual artists the opportunity to develop, produce and present new work by granting them an interest-free loan.
For example, a loan can be provided for a research study or a period of work, or for the presentation of new work inside and outside the Netherlands. Or to invest in a monumental work or an artist’s book or art publication. A loan can also be applied for to create websites and archives and purchase equipment and tools. Moreover, artists can apply for a loan from the Mondriaan Material Fund immediately after graduation. And artists’ initiatives and collectives may also apply for a loan for an artistic project or production, or for equipment or tools.
An interest-free loan through the Mondriaan Material Fund can be a good way of financing the requested personal contribution for project applications to the Mondriaan Fund. For individual project applications, applicants are expected to pay a personal contribution of at least 10 percent of the expenses to be contributed by the fund. That can be a personal investment, but also a contribution from third parties, an interest-free loan or a contribution based on crowdfunding. The way the personal contribution is obtained can have a positive effect on the Mondriaan Fund’s assessment. Applicants who receive a contribution can be granted the 10 percent paid by the Mondriaan Fund after receipt of a final report as pre-financing by means of a loan with Fonds Kwadraat.
How does it work?
Artists or artists’ initiatives submit their applications to the Fonds Kwadraat. Just as with the Mondriaan Fund, an advisory committee of experts assesses the artistic quality of the applications, the applicant’s curriculum vitae and the commercial viability (feasibility, where the work will be exhibited, how a work of art or publication will be publicised and distributed). The maximum interest-free loan is 8,000 euros. Artists can submit applications throughout the year. The committee meets at least five times a year.
If artists have received a contribution from the Mondriaan Fund within the past twelve months and they wish to borrow an (extra) amount from the Mondriaan Material Fund, no extra assessment will be required. In addition, artists who apply to the Mondriaan Fund can indicate that they wish to finance the requested personal contribution of at least 10 percent by taking out an interest-free loan. As soon as the Mondriaan Fund has granted the contribution, the artists will automatically receive an agreement for the loan and repayment of the loan by direct debit.
A loan must be repaid within a maximum of three years. For amounts lower than 2,500 euros, the repayment period is shorter. When taking out a loan, the lender must pay a once-off administration fee of 2.5 percent of the amount being borrowed. This amount must be settled immediately when the loan is taken out. An example: for a loan of 3,500 euros, the administration costs are 87,50 euros. An amount of 3,412.50 euros will be paid to the lender. The loan must be repaid in 35 instalments of 100 euros. The first repayment must be paid four weeks after the money was made available. Faster repayment is always possible. For a loan of more than 5,000 euros, a guarantee is required for the amount above 5,000 euros. Two guarantees are required for amounts above 6,000 euros.
For more information, contact Francine Mendelaar of Fonds Kwadraat.