The HotHouse Theatre, the Flying Fruit Flies Foundation and Wangaratta Jazz Festival are three of almost 100 non-government organisations who will benefit from the state government's $13 million Strategic Investment Fund, which is designed to save jobs.

Flying Fruit Fly Circus artistic director Anni Davey said the funds would help sustain the organisation as recreational classes had been cancelled and fees for the select entry program were waived as only so much could be learnt virtually.

"We've lost money but more importantly... we've lost the ability to continue developing children's skills in anything other than a hold-the-fort way," she said.

Ms Davey said the coronavirus pandemic had shown just how vital the arts were.

"Look at what we're do while locked down, we're watching television, we're watching fictional narratives, we're reading..." she said.

"Art is the thing sustains us, theatre sustain us, entertainment sustains us through these times.

"We can't let the arts die...thank goodness Victorian Government got it and have responded, we hope the Federal Government responds in a similar way."

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HotHouse Theatre creative director Karla Conway welcome the announcement, saying because of social distancing the theatre had been unable to run shows.

She said the creative arts industry contributes $31 billion to the state economy each year and employs eight per cent of the state's workforce. Ms Conway said on the other side, arts would help us process the pandemic and our changed society.

Wangaratta Jazz Festival general manager Leanne Mulcahy said the board was still planning for the festival to go ahead in October, but were putting in place multiple contingency plans.

"It's our 30^th anniversary this year so we're certainly going to have a celebration in some shape or form," she said. "When the festival time comes we're hoping we'll be emerging into a new world, but we're very conscious disposable income will be very limited so we're working to plan a high calibre performance we can deliver on an affordable basis."

Ms Mulcahy said the artistic and hospitality sector was "decimated immediately" by social distancing restrictions so the announcement of a support package was "absolutely welcomed".