The $20 million SCREEN fund was originally administered by Screen Australia with the first round of grants funding allocating $10.335 million to 198 independent cinemas nationally.

The second round of grant funding is available to cinemas who can demonstrate that their box office revenue has dropped at least 30 per cent between July and September 2021 compared to 2019.

Applications can be made from December 24 until April 30.

Majestic Cinemas operates theatres in Kempsey, Port Macquarie, Wynnum, Inverell, Nambour, Nambucca Heads, Sawtell and Singleton.

Chief executive and Independent Cinemas Australia vice president Kieren Dell said cinemas are thankful that local MPs are going in to bat for regional businesses.

"Cinemas at Forster, Taree, Laurieton, Port Macquarie, Kempsey, South West Rocks, Nambucca Heads and Sawtell will all be welcoming this package," Mr Dell said.

"The impacts of the pandemic downturn on our industry have been different to your average business.

"We're continuing to cross our fingers about the Omicron variant, but we have great product for the first time in a while and we're excited to see everyone coming back to the movies."

Plaza Theatre Laurieton owner David McGowan said cinemas are down but there's hope on the horizon.

"We're probably down 50 per cent on 2019 but in saying that, any help for any business at the moment is a plus," he said.

"This will be a slow recovery for all businesses alike and cinema is particularly impacted by the older generations who have been spooked by COVID.

"It's not all bad news, I expected it to be worse these holidays than what it is. The new Spiderman film has done wonders for regional cinemas.

"It's a great film and it will play to all ages, which is surprising. Spiderman: No Way Home has proved outright in America that streaming is not the death of theatres because people still want to socialise and come out to the cinema. The numbers are phenomenal, cinema is alive and well.

"There's also a great back log of films coming up which have all been congested together and cinema will bounce back."

Spider-Man: No Way Home officially passed $467.3 million in North American cinemas and $587.1 million internationally in it's first 12 days of release. It's the first pandemic-era film to cross $1 billion at the global box office, according to Sony Pictures Entertainment.

Federal Member for Lyne, Dr David Gillespie and Federal Member for Cowper, Pat Conaghan have urged eligible local cinema operators to apply.

"Local cinema owners have been hit hard by months of lockdowns and both Pat and myself have been advocating strongly for further Government support," Dr Gillespie said.

"This is an additional $9 million rescue package, following on from round one of the Supporting Cinemas' Retention Endurance and Enhancement of Neighbourhoods Fund."

Mr Conaghan praised the tenacity of local operators and their preparedness to fight hard for their survival.

"Our regional cinemas are at the heart of our entertainment and tourism industry," Mr Conaghan said.

"This new funding round is our government's strong show of support, acknowledging the tough times they are still going through."