FACTOR 2009-2010 Program Changes
Are you a Canadian artist? If so, there's some very important changes to FACTOR applications which were just announced.
If this looks confusing to you, Thorny Bleeder Records can help. As part of our Artist Services division, we can help with your funding applications.
Send an email to brian@thornybleeder.com if you'd like more info.
And now...the official notice from FACTOR:
Program Changes & 2009-2010 Program Deadlines
On an annual basis and prior to their new fiscal year, FACTOR and its Board of Director's meet with a select group of industry professionals and review all of the funding programs offered by FACTOR.
FACTOR President & CEO, Heather Ostertag says that there have been many changes to the 2009-2010 fiscal year applications, some of which have been the greatest changes in FACTOR's 27 year history. "The greatest change this year is the reinstatement of the Recoupment Dividend Fund" says Ostertag. "A strategy by which half of the funds repaid to FACTOR (from a Sound Recording loan) in excess of $1000.00, can be "banked" or set aside for the recipient to put towards another FACTOR program. I like to look at it as rewarding success" says Ostertag, "It's a win/win situation."
All FACTOR applications will be suspended from February 12th, 2009 to March 15, 2009 while the updates are being made.
As we prepare for FACTOR's new fiscal year, beginning April 1, 2009, please be advised that the FACTOR website is undergoing heavy maintenance to account for the many changes the new year has to offer. We are aiming to have everything up and running for April 1, 2009, and everything looks to be on track. We appreciate your patience and understanding, and look forward to seeing you on the 1st!
For more information on Program Changes, the Recoupment Dividend Fund or FACTOR's new deadlines please read the following below.
www.factor.ca
Demo Award
• FACTOR will recognize a maximum of $150.00 as an administration fee.
Independent Loan and FACTOR Loan (Juried Sound Recordings)
• Reinstatement of FACTOR's Recoupment Dividend Fund (please see link for details).
• Using the MAPL guidelines (Music, Artist, Production, Lyrics), currently, FACTOR requires that 50% of the music to be recorded must be 100% Canadian. That will be changed to match CANCON requirements which is that 100% of the material to be recorded must be 50% Canadian. However, the Artist and Production must always be Canadian.
• FACTOR will contribute up to 75% of the total eligible budget as opposed to the current 50%.
• FACTOR will recognize a maximum of $1500.00 as an administration fee.
• Should the application be approved for funding, FACTOR will recognize pre-production costs incurred up to three months prior to the date of receipt of application at FACTOR. Pre-production costs should not exceed 25% of the total eligible budget.
Direct Board Approval Sound Recording Loans
• FACTOR Board of Director's have created a committee to review the current sales plateaus to qualify for Direct Board Approval funding.
• FACTOR will recognize a maximum of $1500.00 as an administration fee.
Emerging Artist Sound Recording Loan
• It was apparent during the review for this program that the industry believed that because they met the qualifying sales criteria, they were automatically approved for funding. This is not the case and FACTOR will more clearly state that the qualifying criteria (as stated on the application) only makes one eligible to apply for funding.
• Further explanation of the Board assessment process will be included in the application form for this program.
• Eligible funding for this program has been increased from $35,000.00 to $50,000.00.
• FACTOR will recognize a maximum of $1500.00 as an administration fee.
Marketing & Promotion for all FACTOR Supported Sound Recordings
• Recognize as eligible, those marketing costs incurred following the date of receipt of the application for funding for the sound recording project.
• There will be a new tiered marketing and promotion support initiative to allow for ongoing support for projects achieving a sales success.
Initially, FACTOR will maintain its current levels of funding for marketing and promotion for FACTOR supported sound recordings. Recipients could apply for additional marketing funds provided they meet the sales plateaus listed below. The formula is based on a $4.00 per unit sales investment. The maximum funding FACTOR would contribute to a sound recording project would be $100,000.
• For the above chart, sales would be required to have been accomplished within 24 months of the date of the initial release of the sound recording.
• FACTOR will contribute up to 75% of the total eligible budget for the initial funding and up to 50% of the total eligible budget for additional funding.
• FACTOR will recognize a maximum of $1500.00 as an administration fee.
Marketing & Promotion for Non-FACTOR Supported Sound Recordings
• FACTOR will recognize a maximum of $250.00 as an administration fee.
Video Program
• FACTOR will recognize a maximum of $1500.00 as an administration fee.
Domestic & International Touring and Showcasing
• Currently, the guidelines state that a tour must take place within 18 months of the release of the album in the territory being toured that time period has been changed to within 24 months.
• Existing touring criteria restricts the number of domestic dates that can be part of an international tour and visa versa. New criteria will have the majority of tour dates being either domestic or international determine whether it will be a domestic or international tour.
• For both Showcase and Tour Support, FACTOR will contribute up to 75% of the total eligible budget as opposed to the current 50%.
• FACTOR will recognize a maximum of $1500.00 as an administration fee for Domestic & International Touring and a maximum of $250.00 as an administration fee for Domestic & International Showcasing.
Label Manager Program
• Funding available will increase from its current level of $15,000.00 to $20,000.00.
• The following costs will now be eligible for funding; corporate marketing activities, company receptions at tradeshows, music industry sponsorships, multiple artist videos/CD samplers and stuffers for conference delegate bags and t-shirts, stickers and other promo items for delegate bags.
• Co-advertising will be recognized as an eligible expense provided it is not charged back to the artist.
• FACTOR will no longer recognize the 15% administration fee.
Domestic & International Business Development
• Funding available will increase from its current level of $15,000.00 to $20,000.00.
• FACTOR will no longer recognize the 15% administration fee.
Collective Initiatives
• A maximum of 15% of FACTOR's contribution can be claimed as an administration fee.
• The following funding caps will be placed on initiatives;
• Provincial initiatives - $25,000.00
• Regional initiatives - $100,000.00
• National initiatives - $200,000.00
• International initiatives - $250,000.00
RECOUPMENT DIVIDEND PROGRAM
When repayments of $1000.00 or more are made to FACTOR from any individual sound recording project, the borrower may be eligible for recoupment dividend funds to be put toward any other FACTOR program. The recoupment dividend funds would be to a maximum of 50% of the funds repaid on an individual project, provided the payment was equal to or greater than $1,000.00. These funds can be used to increase the maximum funding allowed on a project but cannot exceed the 50 or 75% percentage cap (depending) on the program. When accessed, these funds are processed and administered under the terms and conditions of the existing loan/grant agreement (whichever is applicable).
The recoupment dividend funds would be available only if the loan repayment was remitted to FACTOR on time. The borrower forfeits their rights to these funds if the repayment is not made on time. As well, the funds must be used within 24 months of the repayment being made to FACTOR.
The funds are available based on the repayment of an individual sound recording project. The combined sales from various projects totaling or exceeding the minimum repayment are not eligible for a recoupment dividend.
2009-2010 PROGRAM DEADLINES
Demo Awards
April 17th, July 15th, November 13th
FACTOR Loan and Independent Recording Loan (Juried Sound Recordings)
April 30th, July 31st, November 30th
Songwriter Workshop Grants
May 29th, August 28th, October 30th, January 29th, 2010
Direct Board Approval (all levels)
May 29th, August 28th, October 30th, January 29th, 2010
Emerging Artists Sound Recording Loan
May 29th, July 31st, August 28th, October 30th, November 30th, January 29th, 2010
Marketing & Promotion for FACTOR Funded Sound Recordings
April 30th, July 31st, November 30th, January 29th, 2010
Marketing & Promotion for Non-FACTOR Supported Sound Recordings
April 17th, July 15th, November 13th
Video Grants
May 29th, August 28th, October 30th, January 29th, 2010
Domestic & International Showcases
May 29th, August 28th, September 30th, December 15th, January 29th, 2010
Domestic & International Tours
April 30th, June 26th, August 28th, October 30th, December 15th, January 29th, 2010
Label Manager Program
June 26th
Domestic & International Business Development
April 30th, June 26th, August 28th, October 30th, December 15th, January 29th, 2010
Collective Initiatives
May 29th, July 31st, October 30th, December 15th, January 29th, 2010
For more information contact:
Krista Culp
Communications Manager
krista.culp@factor.ca
(416) 696-2215 ext. 215
