FAQ - Funded Projects Department
Sections
GENERAL QUESTIONS
Q: WHAT CONSTITUTES “PROOF OF PAYMENT”?
A: Original cancelled cheques, credit card statements, bank account statements, and bank drafts.
Q: WHAT EXPENSES ARE ELIGIBLE TO FACTOR?
A: Expenses incurred after the receipt of application at FACTOR and those claimed in the original budget. Generally, they include those expenses incurred in Canada, at Canadian facilities, and for Canadian Citizens/Landed Immigrants.
Q: WHY DOES FACTOR REQUEST SOCIAL INSURANCE NUMBERS?
A: Social Insurance Numbers are required from the Demo Award applicant(s) because FACTOR issues T4A’s for tax purposes on behalf of Revenue Canada.
Q: CAN I GET AN EXTENSION TO SUBMIT MY FINAL PAPERWORK OR TO RELEASE MY ALBUM?
A: Yes. E-mail, fax or mail your extension request letter. Ensure you mention your approved file number, supply a brief explanation, and the date you wish to extend your deadline too. Your proposed extension will be reviewed and you will be notified in writing. Please note: without these three items listed above, FACTOR’s Program Administrators cannot authorize an extension.
Q: CAN I MAKE ANY CHANGES TO MY ORIGINAL BUDGET?
A: Yes. FACTOR must be notified in writing before the changes occur and your proposal will be reviewed. You will be contacted by either phone or e-mail with an answer. Please allow two weeks for FACTOR’s response. As well, each Recipient must explain in narrative form, on the Completion Certificate, each variance between the budgeted costs and the actual costs incurred.
Q: CAN I CHANGE THE BORROWER /RECIPIENT OF THE LOAN/CONTRIBUTION?
A: Yes. A written statement, reflecting the transfer from the original Borrower/Recipient to the new one, signed by both parties is required. The new Borrower or Recipient must meet the eligibility criteria set forth in the program application form. In the case of an individual being the new Recipient, FACTOR requires the SIN#, address and phone number of that individual. In the case of a company, ensure that all required documentation is submitted with your application (Please see "Programs" link on our website for required documentation).
Q: WHO CAN ACCESS INFORMATION ABOUT MY FILE?
A: Only the Borrower/Recipient and/or the Contact Person and anybody authorized by the Borrower/Recipient of the Loan/Recipient will receive or can receive information regarding a file.
Q: WHAT DO I NEED TO DO IF I WANT FACTOR TO PAY A SUPPLIER DIRECTLY?
A: You must complete a Letter of Direction and submit it with your Completion Certificate, attached to the applicable invoice.
Q: DO I NEED TO PUT ANY LOGOS ON MY PROMOTIONAL MATERIAL OR CD?
A: Yes. The “Canada” Wordmark, FACTOR’s logo and the following text must be printed on any promotional material for any projects funded by FACTOR:
“We acknowledge the financial support of the Government of Canada through the Department of Canadian Heritage (Canada Music Fund) and of Canada’s private radio Broadcasters.”
Q: IS GST, HST OR PST AN ELIGIBLE EXPENSE?
A: No, FACTOR does not recognize any Canadian taxes.
DEMO AWARD PROGRAM
Q: WHAT DO I NEED TO SUBMIT TO ACCEPT THE CONTRIBUTION?
A: Both copies of the Annexes and both copies of the General Agreement. (General Agreement is only issued once in the lifetime of your contract with FACTOR or ownership structure of your company. Please do not lose your copy).
Q: WHAT DO I NEED TO SUBMIT IN ORDER TO GET MY PAYMENT?
A: A completed and signed Completion Certificate issued by FACTOR, a copy of the finished demo, and the lyrics to the songs recorded. In the case of applying strictly for press kit expenses, please include the full press kit.
Q: CAN I MAKE CHANGES TO MY PROJECT? (I.E.: NEW STUDIO, PRODUCER, SONG SELECTION.)
A: Yes, please submit in writing to FACTOR a summary of all changes and a new budget if applicable. Please do this before the changes have occurred.
In the instance of song changes, please submit the new lyrics.
Q: CAN I SELL MY DEMO? DO I HAVE TO PUT THE FACTOR OR DEPARTMENT OF CANADIAN HERITAGE LOGOS ON MY DEMO?
A: The purpose of FACTOR’s Demo Award is to help new artists with the production of a high quality demo recording, as well as basic press kit expenses to be used to present to key music industry professionals to further their career. It is not intended to be a released sound recording for sale.
DOMESTIC/INTERNATIONAL SHOWCASES AND TOURS
Q: WHAT DO I NEED TO SUBMIT IN ORDER TO RECEIVE MY PAYMENT?
A: A completed and signed Completion Certificate, tour/showcase itinerary, posters/flyers etc., a personnel list, and one original + one copy of all receipts/proof of payments. Please note that all invoices/receipts and proof of payments must be categorized as per the completion certificate.
Q: I NOTICED IN THE AGREEMENT THAT FACTOR DOES NOT ACCEPT CASH PAYMENTS. HOW SHOULD I PAY PEOPLE WHILE ON THE ROAD?
A: Please have all personnel complete a "Suppliers Info Form". This receipt is a declaration of services and payment verification. It must be signed by the individual listed on each form.
Q: WHAT IS THE DIFFERENCE BETWEEN AN ARTIST AND A HIRED MUSICIAN?
A: An artist is a royalty performer (and thus receives a royalty from the sale of the CD); whereas a hired musician is a musician hired to perform and does not receive any royalties from the sale of the CD.
Q: WE HAVE PURCHASED 100 T-SHIRTS TO TAKE ON THE ROAD WITH US: HOWEVER, FACTOR DID NOT RECOGNIZE THE COST OF MANUFACTURE FOR ALL OF THEM. WHY?
A: FACTOR only recognizes the cost of goods sold. Therefore, if you purchased 100 T-shirts and only sold 50 while on tour, FACTOR will only recognize the cost of 50 t-shirts.
Q: OUR TOUR DATES HAVE CHANGED. WILL THIS AFFECT OUR FACTOR CONTRIBUTION?
A: If the tour dates change, please contact FACTOR's Funded Projects Department to notify us of the changes and ensure that your tour still meets the eligibility requirements. FACTOR will require an updated itinerary with the new dates, locations, venue/capacity details and fee schedule in order to review the changes.
Q: SOME OF OUR TOUR DATES WERE CANCELLED. WILL THIS AFFECT OUR FACTOR CONTRIBUTION?
A: In order to qualify for a FACTOR tour contribution you must have a minimum of 8 dates. Radio and TV performances may account for up to 25% of the tour dates.
Q: UNDER PRE-SHOWCASE/TOUR EXPENSES, HOW MANY MONTHS BEFORE THE TOUR CAN WE BEGIN TO CLAIM EXPENSES?
A: FACTOR will recognize expenses pertaining to planning the showcase or tour for up to 3 months prior to the event or tour start date.
Q: HOW DOES FACTOR CALCULATE THE EXCHANGE RATE FOR AN INTERNATIONAL TOUR OR SHOWCASE?
A: If you make a purchase with a credit or debit card and submit the statement indicating the exchange rate at that time, FACTOR will recognize this rate. If not, FACTOR will use an average rate for the month of the purchase as found at http://www.x-rates.com/.
Q: WE USED OUR OWN VEHICLE FOR THE TOUR/SHOWCASE, HOWEVER FACTOR DID NOT RECOGNIZE OUR FUEL PURCHASES. WHY?
A: FACTOR will either recognize the costs associated with a rental as well as ground transportation costs (such as fuel, parking, tolls) or the costs associated with an owner’s vehicle: $0.36 per km (which includes wear and tear on the vehicle and fuel) + the costs of tolls and parking.
Q: DO WE NEED TO SUBMIT REVENUE ACQUIRED THROUGH MERCHANDISE SALES?
A: Yes. You are required to submit all revenue earned during the tour or showcase through performances and off-stage sales.
DOMESTIC & INTERNATIONAL BUSINESS DEVELOPMENT
Q: WHAT DO I NEED TO SUBMIT IN ORDER TO RECEIVE MY PAYMENT?
A: A completed and signed Completion Certificate, a written report on the trips taken and one original plus one set of copies of invoices /receipts/proof of the payments. Please note that all invoices/receipts and proof of payments must be categorized as per the completion certificate.
Q: THE LENGTH OF MY TRIP HAS CHANGED. WILL THIS AFFECT MY FACTOR CONTRIBUTION?
A: FACTOR will only recognize a maximum of 7 days per trip, plus 2 travel days. If your trip has been shortened, FACTOR will adjust its contribution to be based on the eligible expenses submitted.
Q: I AM PLANNING TO GO ON A NUMBER OF TRIPS OVER A SPACE OF TIME. CAN I SUBMIT MY COMPLETION PAPERWORK FOR EACH TRIP SEPARATELY?
A: Yes. You may submit the completion paperwork for each trip and FACTOR will process the paperwork and issue an interim payment per trip. You may also opt to submit the paperwork for all trips following the end of the final trip.
Q: HOW DOES FACTOR CALCULATE THE EXCHANGE RATE FOR AN INTERNATIONAL BUSINESS TRIP?
A: If you make a purchase with a credit or debit card and submit the statement indicating the exchange rate at that time, FACTOR will recognize this rate. If not, FACTOR will use an average rate for the month of the trip as found at http://www.x-rates.com/.
Q: DO I NEED TO PROVIDE RECEIPTS FOR MY PER DIEM EXPENSES?
A: No. FACTOR will recognize a maximum of $100.00 per diem expenses for up to 9 days.
MARKETING AND PROMOTION
Q: I HAVE A MARKETING AND PROMOTION LOAN. AS PER MY AGREEMENT, WHEN DO I SEND IN MY 15 COMPLIMENTARY COPIES OF MY CD?
A: The ideal time would be to send the product when the Borrower has accepted the offer (by submitting the Agreements and annexes). Please be advised that no funds will be released from FACTOR until the product has been received.
Q: ON MY ORIGINAL APPLICATION, I WAS APPROVED FOR A TOUR/SHOWCASE AND VIDEO PRODUCTION EXPENSES WITH MY MARKETING AND PROMOTION FUNDING. HOW DO I PROPERLY ACCOUNT FOR THESE COSTS?
A: Please attach a budget page from the applicable completion certificates to the Marketing and Promotion certificate. All costs will be accounted for together on the final budget page of the marketing and promotion completion certificate.
ROYALTY REPORTS AND LOAN REPAYMENTS
Q: HOW MUCH DO I OWE FACTOR FOR MY SOUND RECORDING LOAN?
A: A total of $0.50 per unit sold (retail, offstage, or downloaded) or $0.05 per single sold or downloaded for a two year period following release date to a maximum of the amount loaned to you towards the project.
Q: I AM A RECIPIENT OF A FACTOR MARKETING AND PROMOTION LOAN, HOW DOES THE REPAYMENT WORK?
A: Upon issuing a final payment, FACTOR will notify you of the upcoming royalty reporting period. You will be required to report on all sales from the release of the record for two years from the date of your signed Annex (See reporting periods below). Sales are repaid at a rate of $0.50 per unit sold, or $0.05 per single. Sales from retail, offstage or downloads are required to be tracked and reported on.
Q: WHAT PERIODS DO THESE REPORTS COVER?
A: There are two reporting periods and each report covers 6 months. The first period is January 1 through June 30 (due August 31st) and the second is July 1 through December 31 (due February 28). Please note that your first report should include all sales from the release up until the end of the relevant period.
Q: HOW WILL I KNOW WHEN TO SEND MY ROYALTY REPORT?
A: FACTOR will notify the Borrower two times a year: once at the end of July (the report is then due back by August 31st) and once at the end of January (the report is then due back by February 28th).
Q: WHAT IF I HAVE NO SALES?
A: A royalty report is required and must be submitted indicating zero sales.
Q: AM I ALLOWED TO CLAIM RESERVE UNITS AGAINST THE NUMBER OF UNITS SHIPPED BY MY DISTRIBUTOR?
A: Yes, a maximum of 35% of the units shipped can be claimed as reserves. Reserve units must be carried forward on your next report.
SONGWRITERS EDUCATIONAL WORKSHOP & SEMINAR SUPPORT
Q: I SUBMITTED MY PROOF OF REGISTRATION WITH MY APPLICATION. DO I HAVE TO SUBMIT IT AGAIN WITH MY COMPLETION PAPERWORK?
A: If registration is a cost you wish to claim, the registration form must be resubmitted along with a proof of payment.
VIDEO CONTRIBUTIONS
Q: WHAT DO I NEED TO SUBMIT IN ORDER TO GET MY PAYMENT?
A: The following must be submitted:
- The completed and signed Completion Certificate form.
- A VHS or DVD copy of the finished video master.
- A copy of the sound recording which the video supports or evidence satisfactory to FACTOR, indicating that the release of the video/single has occurred.
- Two sets (1 original and 1 photocopied) of all the expenses (invoices/receipts/proof of payments) pertaining to the project. They must be categorized per the Completion Certificate form.
OR
The original + a copy of the final invoice from a production company with the proof of payments
- Schedule E- Supplier’s Declaration and Undertaking(s) – original signature(s) required for the services outlined in the offer.
SOUND RECORDING PRODUCT AND RELEASE DATE
Q: IF I HAVE A RECORDING LOAN, WHEN AM I OBLIGATED TO RELEASE MY CD?
A: The Borrower has 6 months from receipt of FACTOR’s final payment to release their Master.
Q: WHAT IF I CANNOT RELEASE MY CD AFTER 6 MONTHS?
A: FACTOR will require notice in writing explaining the reason why. At that time, a new release date should be provided for FACTOR’s review and approval.
Q: HOW MANY CDS DO I NEED TO SEND TO FACTOR?
A: Direct Board Approval Companies and artists receiving a FACTOR Loan or Emerging Artist's Sound Recording Loan must submit 50 copies of the CD. Artists receiving an Independent Loan must submit 25 copies of the CD
Q: WHAT IS THE REQUIRED WAY TO CREDIT FACTOR ON MY FINAL PRODUCT?
A: The FACTOR logo and “Canada” Wordmark (Canadian Heritage Logo) must be printed on the back tray card. On the inside booklet this written credit to the Government of Canada and Canada’s private radio broadcasters is required: “We acknowledge the financial support of the Government of Canada through the Department of Canadian Heritage (Canada Music Fund) and of Canada’s private radio broadcasters”. These logos are available on the FACTOR website (www.factor.ca).
Q: WHAT HAPPENS IF THE LOGOS ARE NOT ON MY PRODUCT?
A: You are by Agreement obligated to ensure that the two logos and written credit are on the finished product. If they are missing, you are required to reprint the album graphics immediately or repay the loan in full.
Q: AFTER I SUBMIT MY CDS WHAT ARE THEY USED FOR?
A: The CDs are sent to FACTOR’s financial sponsors, including representatives of the federal Government of Canada, Radio Broadcasters, CRTC, Campus Radio, our Board of Directors and the music industry associations across Canada.
PAYMENTS
Timing and amounts of advances:
- 25% of the amount offered, upon receipt of the signed Annexes and/or General Agreement for the Domestic & International Showcase Support Program may be issued at FACTOR's discretion.
- 50% of the amount offered, upon receipt of the signed Annexes and/or General Agreements for Sound Recording Loans (excluding the Independent Recording Loan program), Marketing and Promotion Contributions, Tour Support, Video Contributions, Collective Initiatives Support may be issued at FACTOR's discretion.
- Advance payments are not issued for the Demo Award Program, Independent Recording Loan Program, Songwriter’s Workshop & Seminar Support Program, or Domestic & International Business Development.
- Advances are normally processed within 4 weeks of receipt of the signed Agreements and pertaining Annexes.
interim/Final Payments
Q: WHEN I SUBMIT MY FINAL PAPERWORK, WHEN CAN I EXPECT THE PAYMENT?
A: FACTOR’s Funded Projects Department endeavours to have all final and interim payments processed within 60 days of receipt of the completion paperwork. All completion paperwork is processed in the order in which they are received, by date.
Q: I AM MISSING SOME RECEIPTS. CAN I SUBMIT WHAT I HAVE NOW, AND RECEIVE PAYMENT? WILL I RECEIVE THE REMAINDER OF MY OFFER WHEN I SUBMIT MORE PAPERWORK?
A: An interim payment will be issued, along with a Schedule H – explaining why your payment is less. If you are missing any documents (invoices/receipts/proof of payments) make sure to submit them, no later than 3 weeks from the date of the interim letter. Otherwise, your interim payment will be considered final.
Q: HOW MUCH FUNDING AM I ELIGIBLE FOR?
A: The percentage of funding FACTOR will contribute to your project will be indicated on the application and on the Annex. FACTOR's contribution is based on that percentage of the total eligible budget not to exceed the original amount offered, the shortfall amount or, the total cash expenditure.
FACTOR’s contribution to a project combined with any other Government funding, cannot exceed 100% of the total eligible budget and may not exceed the total cash expenditure.