Music funding org FACTOR has included a couple of pleasant surprises to its programs that will be in place for the next fiscal year.
The FACTOR Board has decided that the long-standing policy of recouping a portion of financial support as a loan has been eliminated immediately. From now on all funding support will be given as a grant. What this means is that successful applicants will no longer have to pay back 5% of all earnings from the master for a period of two years and that means more money in the pockets of musicians and indie label owners.
Equally notable is the administration of that also disappears. One indie label exec explained it can be a day’s work and endless sorting through of receipts and invoices to produce the accounting necessary under the old regime: “Not the end of the world but FACTOR is admin intensive so it will be good to lose this.”
The changes were intentional and specific, the Foundation’s Communications and stakeholder relations officer Karina Moldovan offers. “We believe this will encourage artists and companies to reinvest revenue in their projects and will eliminate the administrative burden associated with managing loans for both our clients and staff.”
Also, the Business Development and Business Travel programs have been merged and restructured as the two components in a new program called Support for Eligible Music Companies.
The program offers a FACTOR contribution of 50% of the eligible costs to an annual maximum of $7,500 per year for level 2 companies, and $20,000 per year for level 3 and 4 companies.
Other changes to programs in the 2017-2018 year have been published on FACTOR’s website