SAG-AFTRA Ultra Low Budget vs. Modified Low Budget: Which Agreement Fits Your Film?
The Agreement Choice That Determined Which Actors the Film Could Afford
A producer signs her lead actor to a SAG-AFTRA Modified Low Budget agreement at a budget of $320,000. Two weeks before the shoot, the lead drops out. The replacement candidate is a strong performer who will work for the Ultra Low Budget day rate. The producer discovers she can't downgrade the agreement mid-production: the film is already registered under the Modified Low Budget tier, which carries different scale and pension and health contribution obligations for every performer on the call sheet. Renegotiating the agreement requires SAG-AFTRA approval and costs three weeks and a production lawyer's fees.
The agreement tier decision happens before casting, not during. Understanding the difference between SAG-AFTRA's Ultra Low Budget (ULB) and Modified Low Budget (MLB) agreements before attaching talent determines what the production can afford, which actors it can cast, and what the post-production financial obligations will be. This post compares both agreements on the dimensions that matter for a typical indie narrative feature.
This post describes general provisions of the SAG-AFTRA ULB and MLB agreements as published by SAG-AFTRA. Rates and thresholds are subject to periodic renegotiation. Verify current rates and terms directly with SAG-AFTRA at sagaftra.org or through a qualified entertainment attorney before executing any agreement.
Agreement Comparison at a Glance
| Feature | Ultra Low Budget (ULB) | Modified Low Budget (MLB) |
|---|---|---|
| Budget Ceiling | $250,000 | $700,000 |
| Applicable Format | Theatrical feature film | Theatrical feature film |
| Day Scale Rate | ~$130/day (8 hours) | ~$268/day (8 hours) |
| Weekly Scale Rate | ~$466 | ~$933 |
| Pension & Health Contribution | Not required | Required (17.3% employer) |
| Turnaround Requirement | 9 hours | 9 hours |
| Residuals | Deferred until after recoupment | Modified structure |
| Non-Union Cast | Allowed (Taft-Hartley if converting) | Allowed with conditions |
| Nudity/Intimacy Provisions | Standard SAG-AFTRA terms apply | Standard SAG-AFTRA terms apply |
| SAG-AFTRA Registration Fee | Low | Moderate |
Day and weekly scale rates reflect published SAG-AFTRA terms as of the most recent theatrical low budget agreement. Verify current rates at sagaftra.org/production-center before budgeting.
The Pension and Health Threshold: The Biggest Practical Difference
The absence of pension and health (P&H) contributions under the ULB agreement is the most significant financial difference between the two tiers. Under the MLB agreement, producers contribute 17.3% of each SAG-AFTRA performer's compensation to the SAG-AFTRA Pension and Health Plans. On a production with 10 SAG-AFTRA performers each earning $5,000 in total compensation, that's $8,650 in P&H contributions on top of the cast budget.
Under the ULB agreement, this obligation does not exist. For a production at $200,000 with five SAG-AFTRA performers at scale, the absence of P&H contributions saves approximately $4,000-$8,000 depending on the number of shooting days per performer. At tight indie budget levels, this can represent the difference between making the film and needing another round of fundraising.
The trade-off is that ULB's lower scale rates mean established SAG-AFTRA performers are working significantly below their standard rates. Producers using the ULB agreement typically compensate for this by offering enhanced deferred compensation tied to distribution, backend participation, or favorable IMDb credit placement -- all of which require careful negotiation and documentation in the individual contracts. The film contracts 101 post covers what deferred compensation agreements must include to be enforceable.
Three Production Scenarios
Scenario 1: $180,000 Narrative Feature, First-Time Director
A first-time director with a $180,000 budget needs to cast two actors with SAG-AFTRA membership to satisfy a co-producer's cast requirements. The ULB agreement is the correct tier -- the budget is well below the $250,000 ceiling, the day rates are manageable, and no P&H contribution is required. The budget breakdown calculator models the cast budget at ULB scale rates across a 12-day shoot, confirming that two SAG-AFTRA performers at full ULB scale costs $3,120 in performer fees, which the budget accommodates.
Scenario 2: $450,000 Feature with Named Cast Attached
A producer closes financing at $450,000 with a known SAG-AFTRA performer attached as a co-production requirement. The budget exceeds the ULB ceiling. The MLB agreement applies. At MLB scale, the P&H contribution on the lead performer's compensation of $25,000 is $4,325. The production budgets for this from the start and uses the crew size estimator to ensure total above-the-line costs stay within 35% of the total budget.
Scenario 3: $230,000 Film Where Key Cast Is Non-Union
A $230,000 horror feature has three strong non-union performers in the lead roles who the director doesn't want to convert to SAG-AFTRA membership. The ULB agreement allows for non-union cast under a Taft-Hartley provision if producers can demonstrate the non-union performers were the best available candidates for the specific roles. The producer documents the casting process and works with a production attorney to file the Taft-Hartley paperwork correctly. The film co-production agreements post covers how co-production structures interact with SAG-AFTRA agreement obligations when multiple production entities are involved.
Pro Tips
Tip 1: The SAG-AFTRA agreement tier determines the entire production's labor framework, not just the lead performer's contract. If even one SAG-AFTRA performer is hired, all other performers in the same production must be engaged under the same SAG-AFTRA agreement or with proper Taft-Hartley documentation. Mixing union and non-union performers requires strict procedural compliance that many first-time producers underestimate.
Tip 2: Budget for the signatory deposit before the first day of prep. SAG-AFTRA requires a security deposit or escrow of approximately two weeks' scale for each SAG-AFTRA performer before production begins. This amount is refundable after the production delivers its final Cast List and Exhibit G forms. Failing to post the deposit on time delays production authorization and can create last-minute financing problems.
Tip 3: The ULB residual structure includes deferred residuals payable after the film recoups its negative cost. If you anticipate distribution, especially to streaming platforms, work with an entertainment attorney to ensure your distribution agreement explicitly addresses the residual pass-through obligation to SAG-AFTRA. Distributors and aggregators who take on SAG-AFTRA productions need to know about this obligation from the negotiation stage.
Frequently Asked Questions
What is the difference between the ULB agreement and the Short Film Agreement?
The SAG-AFTRA Short Film Agreement applies to short films under approximately 35 minutes in runtime with budgets not exceeding $50,000. The day rate is approximately $100 per performer. The ULB applies specifically to theatrical feature films up to $250,000. The agreements are not interchangeable: a 22-minute short must use the Short Film Agreement if the filmmaker wants to work with SAG-AFTRA performers under a formal agreement.
Can a film registered under the ULB agreement be sold to a major distributor?
Yes. A film made under the ULB agreement can be licensed, sold, or distributed through any channel. The distribution agreement will need to include provisions for SAG-AFTRA residual payments if the film generates qualifying streaming, broadcast, or home video revenue. Major streaming platforms (Netflix, Amazon, Hulu) have established SAG-AFTRA residual reporting systems. The producer remains responsible for ensuring residuals are paid correctly through distribution.
What happens if a production goes over budget after signing a ULB agreement?
If a ULB-registered production's actual budget exceeds $250,000 at audit, SAG-AFTRA can require the production to re-execute under the MLB agreement and pay the difference in P&H contributions retroactively. Productions that budget close to the $250,000 ceiling should maintain a conservative budget buffer and keep detailed expenditure records throughout production. The threshold is based on total negative cost, which SAG-AFTRA may audit via the production's final cost report.
Do SAG-AFTRA agreements cover both speaking roles and background performers?
SAG-AFTRA theatrical low budget agreements govern principal performers -- those with speaking roles and significant featured background. Background performers (extras) are covered under a separate SAG-AFTRA Background Agreement with different scale rates and administrative requirements. Many low budget productions use non-union background performers, which is permitted under both ULB and MLB agreements as long as principal performers are properly covered.
Related Tools
The Budget Breakdown Calculator models above-the-line cast costs at ULB and MLB scale rates side by side. The Crew Size Estimator helps set crew budget parameters before locking the production budget. For productions navigating contract obligations alongside financing decisions, the how to build an indie film budget post covers above-the-line, below-the-line, and contingency budgeting in full.
Conclusion
The choice between SAG-AFTRA Ultra Low Budget and Modified Low Budget is a budget-driven decision with legal, casting, and financial implications that extend through production and into distribution. The ULB agreement is the correct tool for features under $250,000 where the P&H savings materially affect production viability. The MLB agreement opens the door to higher-profile casting and a more established labor framework at a higher cost. Neither is inherently better; the agreement that fits your actual budget and casting goals is the right one.
The information in this post describes general agreement provisions and is not legal advice. Engage a qualified entertainment attorney before executing any SAG-AFTRA agreement. What aspect of SAG-AFTRA paperwork caught you most off guard on your first union production?
