In the lead up to December 24, the day the $20 million SCREEN Fund closed with half of the cash yet to be spent, the industry body launched a campaign calling on the government to not "abandon Australia's most loved entertainment venues".

One day out from the deadline Paul Fletcher, the federal minister for communications and the arts, announced that $9 million was available through the second round of the SCREEN Fund for independent and regional cinemas that had seen a 30 per cent drop in its box office revenue.

Scott Seddon, owner of Scotty's Cinemas Raymond Terrace, Heddon Greta Drive-in and the president of ICA, said support was needed now more than ever.

"Revenue is still 55 per cent down on top of businesses facing increased costs to operate COVID-safe premises, no cashflow reserves and obligations for huge payback of debt including bank loans and almost two years of rent arrears," he said.

"Those losses can't be recovered overnight."

The funding announcement was welcomed by the Liberal candidate for Paterson, Brooke Vitnell.

"The past two years have been a challenging time for many businesses, but regional cinemas have been hit particularly hard," she said.

"This extra funding will enable cinemas such as Scotty's to recover quicker and keep providing entertainment and delicious popcorn for families across our region."

Under the first round of grant funding, $10m was allocated to 198 cinemas around the country.

Grants under the second round of funding will be available to cinemas that can demonstrate that their box office revenue between July 1 and September 30 was more than 30 per cent below their box office revenue for the corresponding period in 2019.

Applications close April 30.

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