FACTOR – Envelope Funding for Music Companies
Description:
The Envelope Funding for Music Companies program is allocated once a year for a recipient to undertake a suite of activities fostering the development of Canadian artists and the promotion of their music. This can include expenses related to the production and marketing of sound recordings, domestic and international tours and showcases, music publishing, artist management and business development activities.
Comments on Funding:
FACTOR’s contribution is 50% of total eligible expenses up to a maximum funding level of:
- $600,000 for individual companies;
- $800,000 for affiliated companies;
Eligibility:
a) are Canadian-owned and -controlled and have its headquarters based in Canada;
b) have a business that relates to the production and marketing of Canadian sound recordings, domestic and international touring and showcasing of Canadian artists, Canadian artist management, publishing of Canadian musical works and business and skills development;
c) be prepared to make substantial investments in eligible activities that justify the allocation of an annual funding amount which is in line with the company’s investment history;
d) have completed three years of continuous operations as a Canadian music company;
e) be able to demonstrate its financial viability and its history of effective use of public funding;
f) have minimum eligible annual gross revenues (before royalties and fees) of $250,000, not including public funding, in the most recent fiscal year from eligible activities related to music by Canadian artists (sound recordings, touring and showcasing, management and publishing) as detailed in the Application Form (the program’s definition of royalties and fees is found in the revenue sections of the Application Form);
g) have carried out eligible activities (production of sound recordings, marketing of sound recordings, tours and showcases and management) for at least two Canadian artists, who are not owners of the company, and have released at least one eligible Canadian sound recording within the reference period (April 1, 2018, to March 31, 2021) AND/OR for eligible publishing activities, have a minimum of four Canadian songwriters, who are not shareholders or officers of the company, and have promoted at least fifteen new eligible Canadian musical works within the reference period (April 1, 2018, to March 31, 2021);
h) have fulfilled all its contractual obligations with respect to artist royalty payments;
i) be (and its affiliates) in good standing with the Crown as a result of agreements entered into with Canadian Heritage or any other government department as well as with third-party administrators FACTOR and Musicaction; and
j) for Record Labels: Have the receipts from Library and Archives Canada for a “Legal deposit” for each eligible Canadian sound recording. Note that Envelope Funding recipients will be required to submit receipts from the past fiscal year (April 1, 2020 – March 31, 2022) in order to receive their first payment.
a) the production and promotion of sound recordings by Canadian artists;
b) tours and showcases by Canadian artists;
c) publishing of Canadian musical works; and,
d) the management of Canadian artists.
Applications Steps:
Companies that are interested in this program and are new to the FACTOR system must create an Applicant Profile at least 5 business days prior to the program deadline.
Companies that intend to apply and have existing Applicant Profiles meeting program eligibility must contact their Project Coordinator for access to the application.
Documentation Needed:
Applicants must submit:
FACTOR projects approved prior to April 1, 2022: Envelope Funding recipients for 2021-2022 will be required to complete any active project components in other programs with expenses incurred prior to April 1, 2022. Completions for project components in the project system must be submitted within 60 days of accepting the Envelope Funding offer. No new project components will be approved after April 1, 2022.
Other Things to Note:
Program guidelines for 2022-2023 were published in February 2022.

When It Ends:
Ongoing
Deadline:
Next deadlines to determined