The fund will be distributed through the Community Foundation NI and intends to support new creative projects within the sector.
The Foyle MLA said: “The announcement of £2 million for community culture, arts and heritage projects follows a lifeline of £15.75 million Covid support funding for the Arts Sector.
“The dedicated Community Arts, Culture and Heritage Fund is open to all community organisations who can deliver projects as part of the programme’s renewal strand and will prioritise projects which support people with disabilities.
“Any organisation within the community which falls within this category can apply and their primary purpose does not have to be arts or heritage related.
“Interested groups can apply for funding from £2,000 to £20,000 up to 31 March 2021 projects related to culture, arts, creativity and heritage.
“It is worth remembering that in our darkest days when everything else seemingly came to a standstill, we turned to the arts.
“We found solace in a good book, binged watched series after series and listened to our favourite musicians.
“Our communities particularly in my own constituency of Foyle, are abound with creative talent.
“It is vital that we harness that creativity and ensure that the Sector among the hardest hit, yet whose creative fruits we relied so heavily on, are supported to make their ideas and projects a reality.
“Art got many people through this crisis and it will no doubt see many of us through the period of recovery.
“It has the power to improve lives, to embolden and bring people together.
“That will be key in the months ahead and I look forward to witnessing the exciting projects borne from this important funding.”