"It was an absolute washout financially as well as meteorologically," said Bob LeDrew, a spokesperson for Folk Festival, in an OBJ interview.
Bluesfest head Mark Monahan will become an adviser on the Folk Festival's board, double the existing performer budget to about $300,000 or $400,000, and also pay off the $150,000 owed to creditors.
"Mark came to one of board members and said, you're in a tough spot here. And it's a spot himself that Mark went through in the early years of Bluesfest; anybody who does an outdoor festival is going to take your chances with the weather co-operating."
Mr. Monahan is also considering cross-promotion between the two events, which would likely also entail moving the Folk Festival from its current location at Britannia Park.
In a statement, the Ottawa Folk Festival said the "generous loan" would help it satisfy creditors and get ready for the 2011 season.
"As an organization, I think we need to be open about all of this stuff and that's why we issued the news release and we're talking about this," Mr. LeDrew said.
"Beyond talking to people in the media about it we talk to our volunteers, because no festival can survive without volunteers."