The Arts Council of Wales (ACW) has delayed funding conditions for its portfolio for three months.
Advice issued late on Tuesday says ACW is still not sure what form its support for the sector might take: "The scale of the problem is beyond our financial resources alone."
"We’re urgently exploring with the Welsh Government what financial support might be available to mitigate the effects of closures, cancellations and loss of income."
Like Arts Council England, ACW says project grants will be honoured regardless of whether the activity is delivered. However, it is asking organisations to stick to the usual processes and timescales for applications.
"If you’re successful in your application, we’ll contact you to see if you need to amend your plans in the light of Government advice at that time. We’ll try and find ways of helping you to realise your plans, but if that’s not possible you can choose to withdraw from your funding award."