Short-term Relief for Investment Clients

The first phase of the Short-term Relief for Investment Clients provides emergency support for existing investment clients to survive the impact of COVID-19, maintain their key people and in some cases support the broader ecology of freelance practitioners until 30 June 2020. Investment clients are the 83 arts organisations currently receiving multi-year funding via the Tōtara and Kahikatea investment programmes. Given the rapidly changing circumstances this will continue to be reassessed.

Amount:

Closing dates:

Find out who got funded recently

There is no maximum amount, but organisations should request the minimum amount needed from Creative New Zealand in order for the organisation to regain stability or remain stable until 30 June 2020.

31 May 2020

Artforms funded:

This content is tagged as All Artforms .

1. Check your eligibility

Who can apply

Organisations currently receiving multi-year funding via the Toi Tōtara Haemata and Toi Uru Kahikatea programmes. Organisations receiving transition funding are not eligible.

All organisations must have already received Wage Support under the Government’s Economic Recovery Package to be eligible for our Short-term Relief for Investment Clients.

Funding will be prioritised towards addressing the immediate financial needs of organisations who can demonstrate they are not able to stabilise their organisation up to 30 June 2020 because they:

  • are already materially negatively impacted by COVID-19 restrictions and/or
  • will be materially negatively impacted for the period March to 30 June 2020, as a result of cancelled or deferred activities (including the impact of incurred costs without associated revenue).

Timing

The first phase of Short-term Relief for Investment Clients is open for applications between 14 April 2020 and 1pm on 31 May 2020. There will be no extensions beyond this date and all requests for extensions will be denied.

How often you can apply

Only one application can be submitted per organisation between 14 April and 31 May 2020.

Breaches of agreements

We cannot consider an application if you, your organisation, or key members of your team are in breach of the conditions of a current funding agreement, which includes missing the deadline for reporting on a previous grant.

For more information see our Funding guidelines – breaches of agreement

2. See what's funded

The first phase of the Short-term Relief for Investment Clients provides emergency support for Creative New Zealand’s 83 Tōtara and Kahikatea organisations to survive the impact of COVID-19, maintain their key people and in some cases support the broader ecology of freelance practitioners until 30 June 2020.

What we Fund

This fund is for organisations that have been materially negatively impacted by the COVID-19 restrictions and as a result are not able to stabilise their organisation up to 30 June 2020.

When determining material negative impact on your organisation you will need to consider:

  • contracted Creative New Zealand payments are continuing throughout 2020 (unless you have been specifically advised otherwise by Creative New Zealand)
  • what commitments you currently have that can’t be altered (going forward, we will work with you to review your programme and what can be delivered in light of COVID-19 restrictions)
  • the removal of the expectation to deliver activity as a result of the COVID-19 restrictions
  • your reserves (we expect you to consider how your reserves can be used to mitigate your organisation’s financial risks in the mid to long term)
  • other government support and relief packages you are eligible for; and
  • additional sources of income.

Creative New Zealand considers ‘Material negative impact’ to be one or more of the following:

  • Cannot remain a going concern.
  • Cannot pay bills and people in the short term (to end of June 2020) (working capital viability).
  • Cannot honour artist, designer, technical contracts until the end of June for projects that have been cancelled.
  • Cannot remain viable in the medium term (to December 2020), to sustain their internal infrastructure and people (balance sheet and entity viability).

Funding will be prioritised towards addressing the immediate financial needs of organisations who can demonstrate they are not able to stabilise their organisation up to 30 June 2020 because they:

  • are already materially negatively impacted by COVID-19 restrictions and/or
  • will be materially negatively impacted for the period March to 30 June 2020, as a result of cancelled or deferred activities (including the impact of incurred costs without associated revenue).

What is not included in the Short Term Relief for Investment Clients

New activity or additional activity costs associated with re-orienting existing activity are not eligible under this fund.

Individuals who have received support via Creative New Zealand’s Emergency Response Grant (ERG) are not eligible to receive funding as a result of the Short-term Relief for Investment Clients. If you have contracts with individuals who have received the ERG, please do not include these contracts in your requested funding amount.

Maximum amounts available

We ask that you request the minimum amount you need to stabilise your organisation as we have a limited budget, so trade-offs will need to be made. As Creative New Zealand is using its reserves in order to provide support to the arts sector during this time, we expect you to consider carefully how your reserves can be used both to stabilise your organisation and support the arts sector.

All investment clients will receive their April, July and October 2020 payments from Creative New Zealand (unless we have specifically advised you otherwise). You must factor these payments into your calculations.

You will need to include clear and convincing evidence the amount you are requesting is only what is absolutely needed from Creative New Zealand. This amount must be directly related to the impact of COVID-19 restrictions. If you do not include this, we may seek additional information from you and ask you to revise your requested amount. This will slow down the process and delay payment if you are successful.

3. Make an application

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How to submit

Please provide the following by email to investments@creativenz.govt.nz:

  • Confirmation you have received Wage Support under the Economic Recovery Package.
  • Amount requested from this short-term relief. This should be the minimum amount needed from Creative New Zealand in order for the organisation to regain stability or remain stable until 30 June 2020.
  • Brief notes on how the requested amount was arrived at.
  • A Statement of Financial Position forecast as at 30 June 2020, including brief notes if needed. Do not include the Short-term Relief for Investment Clients request in this forecast.
  • A Statement of Financial Performance forecast for the period ended 30 June 2020. Do not include the Short-term Relief for Investment Clients request in this forecast.
  • Cashflow projection to 30 June 2020, including brief notes covering:
    • support you have received from the Government via the Economic Recovery Package
    • (if applicable) change in revenue from other non-activity sources including other funders, philanthropy, donations, etc.
  • A list of what (if any) activities you are planning to carry out between now and 30 June 2020 using your existing funding or any other income you may be receiving.
  • It is our expectation that Tōtara and Kahikatea organisations honour artist, designer, technical contracts and other agreements during this time, including other agreements with Tōtara and Kahikatea clients. To ensure fairness and transparency, please provide:
    • names of individual contractors
    • whether or not each has applied for support under the Economic Recovery Package or Creative New Zealand’s other emergency support funding
  • We may ask for additional information if required. Please note that this will delay the process and extend the time until payment is made if your request is granted.

As all investment clients will be receiving the April, July and October 2020 payments as outlined in the funding agreement (unless you have been specifically advised by Creative New Zealand). You will need to factor these payments into your calculations.

If you’re struggling to prepare the above information due to the negative impact of COVID-19, please contact your Investment Services Adviser as we’re glad to help.

Send us your application any time between 14 April and 31 May 2020. 

4. Assessing applications

How we verify your application

Verification Criteria:

All verification criteria must be able to be answered with YES for a request to be considered granted.

  • Has the organisation received Wage Support under the Economic Recovery Package? Yes/No
  • Is the information provided sufficient to verify the financial performance, position and solvency until 30 June 2020? Yes/No
  • Do the projections show that the additional funding you are seeking will enable you to meet our indicators of a stable organisation to June 30th? Yes/No

We define a stable organisation as one that for the period until June 30th will be able to:

  • remain a going concern
  • pay their bills and people in the short term (working capital viability)
  • honour artist, designer and technical contracts until the end of June for activities that have been cancelled
  • remain viable in the medium term, sustain their internal infrastructure and people (balance sheet and entity viability) 
  • Does the information provided indicate there will be a material negative impact on the organisation that cannot be addressed through the reduction of activity or other funding support? Yes/No
  • Is the level of request consistent with the projections and rationale? Yes/No

Who processes your submission

Requests under $250k: The final approval is made by Creative New Zealand’s Chief Executive based on recommendations from the Senior Manager Arts Development.

Requests $250k and over:  The final approval is made by the Chair of the Arts Council in consultation with the Governance Management Emergency Committee based on recommendations from the Senior Manager Arts Development and the Chief Executive.

5. Notification of results

We’ll email you your result no later than 20 working days after we have received all of the information we require.

If your application has been successfully verified you’ll see the amount granted in your account within 5 working days of us notifying you of our decision.

We’ll also list the organisations who received Short-term Relief for Investment Clients and the amount they received on Who got funded

6. On completion

As part of your 31 July 2020 report you must include a letter from your Board Chair verifying that all Short-term Relief for Investment Clients funding was spent to stabilise the organisation.

This is a trust-based initiative designed to mobilise support as soon as possible and minimise burden on organisations. If there is any indication that funding has been misused Creative New Zealand may require a full audit of the spent funds. Any misuse of funding will be treated as a breach of contract and will result in immediate termination of your funding agreement.

7. Who to contact

For more information or advice contact your Investment Services Adviser or email us at investments@creativenz.govt.nz