Arts Council England is to wind up its subsidiary ArtCo Trading and transfer its services into a new community interest company, so it can bid for Big Lottery Fund money.

Creative Sector Services CIC will be an independent enterprise, and deliver three Art Council programmes formerly run by ArtsCo Trading Ltd. These are: Own Art and Take it Away, which both provide interest-free loans for the purchase of art and musical instruments, and Creative Industry Finance which offers business development support and access to loans of up to £25,000 for small and medium-sized creative industry enterprises.

A spokeswoman said the move places the existing programmes of work in a more flexible funding environment where, for example, they will be eligible for funding through Lottery income – something that is not possible under the current arrangements with ArtCo.

She added that Creative Services Sector CIC will also have the ability to operate in a more entrepreneurial way than is possible for a wholly-owned subsidiary of Arts Council England. “This will open up new opportunities for the company to develop additional income streams to support its activity – including private giving, equity investment, and commercial income.”

Alan Davey, chief executive of Arts Council England, said: “ArtCo Trading has been a hugely successful initiative for the Arts Council and the time is now ripe to maximise its potential by giving it independence.

“The changes announced today are good news for the enterprises currently benefitting from ArtCo funding and for the many more who will do so in the future. These are companies at the heart of culture’s economic and creative growth.”

Creative Sector Services CIC, which is now up and running, is based at Somerset House.

In October 2012 the Arts Council approved the ArtCo Trading Ltd budget of £1.285m for the delivery of the Own Art, Take it Away and Creative Industry Finance programmes for 2013/14. This funding has been transferred to Creative Sector Services CIC.

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