Brecon Jazz Festival has secured an extra £11,000 to help fund free street entertainment for this year's event.
Kruxz Band have been forced to pull out of this year's festival
However, the cash boost is too late to prevent one of the event's founding bands from pulling out.
The Kruxz Band, from the Netherlands, have played at every festival for the last 20 years.
Their expenses are normally paid to travel to mid Wales, but the delay in the funding, coupled with the fact they now have nowhere to play, has meant the band will not travel.
Band member David Jones said: "The band members in the Netherlands are bitterly disappointed.
"The band was the inspiration for the festival and we have played at each of the last 20 festivals.
"One of the festival's early committee members, Toni Constantinescu, heard the band in the Netherlands and he came back to Brecon and thought what a good idea it would be to hold a jazz event in the town."
He added: "It's the band's 40th anniversary and we were due to launch a new CD at the festival called Sky High, but now we're rock bottom.
"We found out late last week that a bandstand we were due to play in would not be available and coupled with that the late application, or delay in paying the street entertainers' funding, has meant Kruxz Band will not appear this year."
The festival takes over the streets of Brecon for a weekend
Meanwhile, festival director Andy Eagle welcomed Powys County Council decision on Tuesday.
The council's board agreed to give the festival £5,000, with another £6,000 dependent on match funded business sponsorship.
"We have enough to match fund the council's grant," said Mr Eagle.
"We are delighted with the funding and it allows us to provide a programme of free street music.
"The grant by the council is an endorsement of the festival."
Festival funding has been a contentious issue for a number of years.
Last year organisers of the festival claimed it might have to move because of a row over cash, when the county council withdrew an £11,000 annual grant.
The festival was given more than £380,000 by the Welsh Assembly Government to secure its future in 2003.
About 50,000 people are expected to attend Brecon Jazz, which begins on 13 August.