Amount:

No Fixed Amount

Type of Program:

Indemnity


Description:

The Short-Term Compensation Fund for Canadian Audiovisual Productions (STCF) is a temporary measure whose purpose is to minimize the consequences of the void created by the lack of insurance coverage for interruptions in filming and the abandonment of productions caused by the COVID-19 pandemic in the sector of audiovisual production.

Through the Fund, Telefilm Canada will indemnify eligible producers for reasonable Canadian production costs directly caused by an interruption of more than one day in filming or the producer’s abandonment of the production prior to the end of filming due to:  

  • a confirmed diagnosis (COVID-19) of an Actor or Director declared on the insurance policy covering the project or;
  • any confirmed outbreak (COVID-19) on set that requires a complete production shutdown in accordance with current standards required by the applicable authorities. 

Comments on Funding:

TEMPORARY INTERUPTION

The total compensation per project shall not exceed the lesser of the following amounts:

  • $1.5 million;
  • 20% of the total production budget submitted to Telefilm at the pre-eligibility application stage.

In case of a temporary interruption in the project’s production, the compensation provided by Telefilm under this Fund shall take the form of an indemnity equal to the total of the Eligible Costs indicated in subsection 5.1.1 (limited to all additional production costs incurred by the applicant until the resumption of filming activities and which are contractually payable) less a deductible equal to the lesser of the following amounts: (i) 15% of the said Eligible Costs; or (ii) $100,000.

PERMANENT PRODUCTION ABANDONMENT

The total compensation per project shall not exceed the lesser of the following amounts:

  • $3 million;
  • 20% of the total production budget submitted to Telefilm at the pre-eligibility application stage.

In case of the permanent abandonment of the project’s production before the end of filming, the compensation provided by Telefilm under this Fund shall take the form of an indemnity equal to the total of the Eligible Costs indicated in subsection 5.1.2 (the Eligible Costs include all production costs incurred by the applicant up to the moment of abandonment and which are contractually payable, other than the non-eligible costs) less a deductible equal to the lesser of the following amounts: 

  • 15% of the said Eligible Costs; or
  • $350,000.

For a period of 48 months following a claim for abandonment, the applicant and their beneficiaries will be required to obtain the prior approval of Telefilm for any transaction involving, directly or indirectly, the project.

Applicants can file more than one claim for the same project. In such cases, the amounts of compensation offered by Telefilm are cumulative and subject to the limits indicated in subsections 6.1 and 6.2. Individual claims for losses of less than $5,000 in Eligible Costs are not admissible. However, where an applicant has several claims, and the total of which exceeds $5,000 in Eligible Costs, said claims are admissible.

The costs relating to the analysis of the claim are the responsibility of the applicant, even if the claim for compensation is refused in whole or in part. These costs will be deducted, where applicable, from the amount of compensation offered by Telefilm or, in the event of refusal of compensation, payable by the applicant upon receipt of an invoice from Telefilm to this effect.


When It Ends:

Ongoing

Deadline:

March 31, 2022

Eligibility:

The Applicant must:

  • be a Canadian corporation eligible for the Canadian Film or Video Production Tax Credit (CPTC); 
  • have and apply a COVID-19 safety plan in accordance with the current applicable sanitary requirements and ensure that the project and all its participants systematically comply with the sanitary safety measures throughout the filming in accordance with the standards currently in effect as required by the applicable authorities and keep such plan updated. Among other things, this plan must provide for the implementation of measures in situations where social distancing is not possible and identify a person responsible for its application;
  • hold all the copyrights in the project necessary for its development, production and exploitation, as well as the control of the project; in the case of a coproduction, the applicant must hold these rights and control the project in proportion to its participation in it.

Note: only one application for pre-eligibility will be processed per project. Therefore, in the case of national coproductions, the coproducers will be required to designate one coproducer from among them to submit the application.  

Applications Steps:

There are two steps to the application process: 

1

pre-eligibility - Applicants must submit their application for pre-eligibility online via Dialogue. To be able to submit claims under this Fund, applicants must conclude a pre-eligibility agreement with Telefilm under the STCF prior to the occurrence of any Incident.

2

application for compensation. Any claim under the STCF must be submitted within 30 days following the resumption of filming, and in all events, no more than 15 days after the Fund Expiry Date, or be subject to the refusal or non-availability of funds. 

Applications must be submitted online.

Documentation Needed:

The applicant must submit:

  1. 1
    the application for pre-eligibility must be accompanied by the following documents:
  • the attestation of and commitment to comply with the eligibility criteria;
  • proof of a comprehensive producers insurance policy and the applicant’s comprehensive general liability insurance policy for the project, including the names of the actors and directors covered;
  • the detailed final budget for the project, based on the standard budget template available on the STCF’s website;
  • in the case of national coproductions, the Applicant Designation Form duly completed by all the coproducers;
  • the production schedule;
  • the list of cast and crew; and
  • the list of the different filming locations.
  1. 2
    the application for compensation accompanied by a letter from the project insurer confirming the denial of insurance coverage for the costs claimed. Furthermore, the applicant must clearly identify, among the costs claimed, which are Related Parties transactions.

Telefilm reserves the right to request any other document it considers necessary to process the application.

Other Things to Note:

The STCF will come to an end upon the occurrence of the earliest of the following events (“Fund Expiry Date”):

  • The implementation of a permanent alternative solution to cover interruptions in and the abandonment of filming due to the COVID-19 pandemic for the entire audiovisual industry;
  • Notice from the Federal Government;
  • The exhaustion or lapse of the budget envelope allocated to this Fund; or
  • March 31, 2022.

APRIL 1, 2021 updated Guidelines, Source 2022

About the author 

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business.
Click here to learn more about Moe's background and how he can help your business.

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