# Ultra Low Budget Agreement

Source: https://storiara.com/glossary/ultra-low-budget-agreement
Last updated: 2026-09-14
Author: Charles Hirschhorn, Storiara

> The Ultra Low Budget Project Agreement (UPA) is SAG-AFTRA's contract for independent films shot entirely in the United States with a total budget of no more than $300,000, including deferred pay. It allows day performers only, at 20% of the Basic Agreement day rate ($257 from July 1, 2026), and lets producers cast union and non-union actors.

## Budgeting cast on the UPA

A 15-day ultra low budget feature with three leads working every day and eight day players working two days each has 3 x 15 + 8 x 2 = 61 performer days.

| Line | Math | Amount |
|---|---|---|
| Performer days at $257 | 61 x $257 | $15,677.00 |
| Pension and health, 22% | $15,677 x 0.22 | $3,448.94 |
| **Cast before payroll taxes and overtime** | | **$19,125.94** |

Overtime is extra. Under the UPA, a day performer's overtime through the 12th hour is paid at time and a half, in tenth-of-an-hour units, and from the 13th hour at double time. At $257 for an 8-hour day, the hourly rate is $32.125, so one hour of time and a half is about $48.19. Budget a few hours per performer per week rather than zero.

## The $300,000 includes more than cash

The cap applies to the total production cost: all above-the-line and below-the-line costs, including deferred compensation. A film with $240,000 in cash and $75,000 in [deferred pay](https://storiara.com/glossary/deferred-pay) is at $315,000 and doesn't qualify. If SAG-AFTRA later decides a project doesn't qualify, the agreement lets it reclassify the film to the appropriate agreement, and the producer owes the difference in compensation. See [SAG-AFTRA tiers](https://storiara.com/glossary/sag-aftra-tiers) for the next agreement up.

## Rules that affect the schedule

- Day performers only. No weekly contracts.
- Consecutive employment is waived with each performer's written consent (except on overnight locations), and performers can take other work during the shoot. Producers waive exclusivity in return.
- A performer can't be required to hold a day unless they're paid for it, which matters when you build the [day out of days](https://storiara.com/glossary/day-out-of-days).
- Payments go through an entertainment payroll house, so budget a [payroll company](https://storiara.com/glossary/payroll-company) fee.

## Release limits

The base pay covers limited exhibition: film festivals, free-to-consumer new media for 13 consecutive weeks, a one-week theatrical run for Academy consideration, industry and financier screenings, and limited public access TV. Selling the film to a streamer or cable outlet is permitted, but it triggers residuals, and the producer has to notify SAG-AFTRA before that release.

## Applying

SAG-AFTRA recommends applying four to six weeks before the first day of work. It asks for company formation documents, the script, the [day out of days](https://storiara.com/glossary/day-out-of-days), a line item budget, and a pre-production cast list, and it may require a security deposit. The [how to become a SAG-AFTRA signatory](https://storiara.com/blog/how-to-become-a-sag-aftra-signatory) post walks through the paperwork.

## Frequently asked questions

### What is the SAG-AFTRA ultra low budget day rate for 2026?

$257 per day for performers from July 1, 2026, rising to $264 on July 1, 2027. Pension and health is an additional 22% of gross for performers, effective September 6, 2026.

### Can I use non-union actors on a SAG ultra low budget film?

Yes. The UPA lets producers work with both professional and non-professional performers, though the agreement covers only the professional performers. Taft-Hartley doesn't apply.

### Are background actors covered under the Ultra Low Budget agreement?

No. Background actors and extras are not covered under the UPA.

### Where can I release an ultra low budget film?

The base compensation covers limited exhibition, such as festivals, free new media platforms for 13 consecutive weeks, and a one-week Academy qualifying run. A release in other markets is allowed but triggers residuals under the agreement.

## Sources

- [SAG-AFTRA 2026 Ultra Low Budget Project Agreement Rate Sheet](https://www.sagaftra.org/sites/default/files/2025-10/Current%20Ultra%20Low%20Budget%20Project%20Agreement%20(UPA)%20Rate%20Sheet.pdf)
- [SAG-AFTRA Ultra Low Budget Project Agreement (sample, rev. 3.21.23)](https://www.sagaftra.org/sites/default/files/Ultra%20Low%20Budget%20Project%20Agreement%20(UPA)%20Rev.%203.21.23%20SAMPLE.pdf)
- [SAG-AFTRA Production Center: Ultra Low Budget Project, getting started](https://www.sagaftra.org/production-center/contract/819/getting-started)
- [SAG-AFTRA: Ultra Low Budget summary](https://www.sagaftra.org/industry-resources/rates-agreements/ultra-low-budget)