Amount: grants and loans of up to 30% of the eligible project costs to a maximum of $3 million.
The objective of Forest Sector Investment and Innovation Program (FSIIP) is to encourage businesses to make investments by providing financial support for projects that will improve productivity, increase innovation, support market expansion, strengthen regional economies and supply chains, and positively impact Ontario’s broader forest sector. FSIIP will assist Ontario forestry companies to develop and implement innovative technology and encourage innovation in products, services, and processes to improve the competitiveness of Ontario’s forest industry.
There are two streams — business projects
stream and collaboration projects
stream. Business projects will support capital investment projects put forward by for-profit forestry companies that meet the objectives of the program. Collaboration projects will support projects brought forward by project partners that may include for-profit forestry companies, industry associations, forestry-related not-for-profits and/or academia
Eligibility requirements
Eligible applicants are for-profit forest sector businesses that are registered to conduct business in Ontario. This may include:
- for-profit manufacturers and processors of wood and forest biomass across Ontario, such as sawmills, pulp and paper mills
- secondary wood manufacturers, such as wood cabinets and engineered wood products, and furniture makers
- Bio-product manufacturers utilizing forestry-based inputs
Forest sector-related not-for-profit organizations (such as research organizations or industry associations) or Ontario-based post-secondary education institutions may be eligible for funding under the collaboration projects stream.
Business projects
The business projects stream will have a minimum eligible project costs threshold of $3 million. Eligible projects will improve the competitiveness of the applicant’s Ontario-based operations through:
- productivity improvements
- technology
- process or product innovation
- market expansion
- positive impact on the regional economy in which the company operates
- positive impact on the broader forest sector in Ontario
Applicants must demonstrate government support is needed to implement the project.
Note: harvesting and hauling companies/projects are not eligible under the business projects stream.
Collaboration projects
The collaboration projects stream will have a minimum eligible project costs threshold of $3 million for projects that will have a transformative impact across Ontario’s forest and wood products sector. This will be done through a focus on industry-leading innovation, the development and/or implementation of first-in-kind innovation or adaptation or adoption of existing innovations such as:
- process innovation/modernization with broad application
- product innovation, new product development with benefits up and down the supply chain
- product innovation, new product development with broad benefits across Ontario’s forest sector and/or other related sectors (such as wood building construction and design) of Ontario’s economy
Eligible costs
The following cost categories are considered eligible:
- Project facility modifications/upgrades required for the project;
- The purchase or upgrade of equipment and machinery required for the successful completion of the project;
- Non-interest portions of the capital-lease;
- Project-related computer hardware and software;
- Costs of direct materials necessary for, and specifically identified and measured as having been used for, the completion of the project;
- One-time labour costs directly attributable to the development and implementation of the Project;
- Costs incurred by the proponent for research and development, directly attributable to the project;
- Training costs directly attributable to the Project;
- Market expansion as the development of new incremental sales;
- Travel costs, legal/accounting and others.
Funding
For business projects
Applicants may apply for either a loan or a grant, not both. Performance based loans is up to a maximum of 30% of eligible project costs. Grants up to a maximum of 15% of eligible project costs may be considered in exceptional circumstances.
For collaboration projects
Grants up to a maximum of 30% of eligible project costs to a maximum of $3 million.
