Create NSW has given a helping hand to Spunk Records, Steel City Strings, the South Coast Writers Centre (SCWC) and the Illawarra Aboriginal Corporation under Round 1 of their Arts and Cultural Funding Program.

The arts grants are set to employ more than 6,000 artists and reach more than 1.4 million people across the state.

The Stanwell Park based record company will use their chunk of money to take 15 established and mid-career artists to their home towns - from Bourke to Inverell to Warilla - for "concerts, workshops and school visits to offer inspiration and mentorship" via a caravan.

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Label founder Aaron Curnow said the "Hometowns" project was a collaboration with Dinosaur City records, and hoped to bring Illawarra rapper Dobby back to his roots in Warilla as part of the tour.

"It's good to have money flowing in and be busy," Mr Curnow said. "We are excited about putting on music in towns that rarely has contemporary live music as well."

Director of the SCWC Sarah Nicholson couldn't be happier with the $80,000 they received, a lifeline to an organisation that became a sinking ship after other funding was cut earlier in the year.

They've also received grants elsewhere from Create NSW, $9000 from community donations and ongoing support from Wollongong City Council to stop them going under.

"CreateNSW have indicated that they absolutely recognise the importance of funding regional writers and creatives, and how crucial that support is for the literary community at the moment," Dr Nicholson said.

"Our funding will be used to employ local arts workers and creatives on the South Coast, and to assist emerging local writers with the development of skills and new work."

Wollongong chamber orchestra Steel City Strings will collaborate with two contemporary First Nation composers to create and present new work, with concerts set for the Illawarra, Shoalhaven and Southern Highlands next year.

Indigenous composer and digeridoo player William Barton will be a guest performer of his own works, collaborating with local Indigenous composer Brenda Gifford from the Shoalhaven.

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While a women's weaving group, Weaving Across the Divide, will be facilitated by the Illawarra Aboriginal Corporation thanks to funding which will enable the group to encourage traditional weaving and storytelling skills to younger generations.

Ninety-seven recipients throughout NSW will share in $5.045 million funding to deliver arts and cultural activity, with nearly 60 per cent of funded activity occurring in Western Sydney and Regional NSW.

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Minister for the Arts, Don Harwin said the funding will support projects that are key to the State's cultural life and contribute to a thriving and connected arts and cultural sector.

"This funding will support programs and projects estimated to employ over 6,000 artists and reach more than 1.4 million people across the State," Mr Harwin said.

"We know the people of NSW want to return to theatres, galleries and festivals and to show their support for the sector after such a challenging year."

Round 2 of Create NSW's 2020/21 Creative Koori, Project and Annual Organisation funding will open on February1, 2021.

For further information on arts, screen and cultural funding, including targeted support opportunities, visit the Create NSW website at www.create.nsw.gov.au.