From the Times article:
Fresh off its stunning "Paranormal Activity" success -- a $15,000 thriller that has grossed more than $107 million in its domestic release with little paid advertising -- Paramount Pictures is set to launch a new production business for movies budgeted at less than $100,000.
The as-yet-unnamed division plans to finance as many as 20 "micro-budget" movies annually starting in 2010, according to people familiar with the studio's plans who spoke on condition of anonymity because the formal announcement has not been made. A current Paramount executive will run the business, but the selection has not yet been revealed publicly. Funds for the movies -- no more than $2 million total annually -- will be part of Paramount's existing production budget. The division does not plan to acquire completed movies at film festivals and markets.
Even if you get a chance to make your film and it serves as a "calling card", or warrant a larger budget to be re-made, this could be a good thing. We'll have to keep an eye out.
Read the entire article here.
I originally found the reference at FreshDV, a cool site for filmmakers.