Forest Sector Investment and Innovation Program: Business projects
This Ontario program offers wood manufacturing projects a performance-based loan of up to 30% of eligible costs, and up to half of the loan may be forgiven. Projects need at least $3 million in eligible costs, and you need approval before you spend. Applications are open.
“You can receive funding support of up to 30% of eligible costs in the form of a performance-based loan (of which, up to 50% may be forgivable).”
From the official program page
Before you spend any money
Approval must come before you spend; money spent before the funding agreement is signed usually does not count.
At a glance
Subject to program rules, available funding, and approval. Confirm current details with the official program administrator.
Is this for you?
- You are an Ontario for-profit manufacturer or processor of wood products or forest biomass.
- Your project has at least $3 million in eligible costs and focuses on productivity, innovation, or market access.
Probably not the right fit if
- You are in harvesting or resource extraction, which is explicitly excluded.
- Your project costs are under $3 million.
- Your business does not make wood products or process forest biomass.
How much you'd realistically get
Up to 30% of eligible costs as a performance-based loan (up to half may be forgivable); grants of up to 15% may be considered in exceptional cases.
What may be supported
- Strategic investments that improve productivity and innovation.
- Investments that enhance competitiveness.
- Investments that support new market access.
- Investments that provide benefits to Ontario’s broader forest sector.
- Investments that strengthen regional economies.
- Innovation in technology, process, and/or products (for collaboration projects).
What's excluded or restricted
- Harvesting and resource extraction projects are not eligible for funding.
How applying works
Effort: involvedYou must register with TPON, pass a Stage I eligibility check, and submit a full Stage II business plan with supplemental documents by strict round deadlines.
- 01Register with Transfer Payments Ontario (TPON).
- 02Log in to TPON and complete the Stage I Eligibility Checklist and Application Form.
- 03Wait for Stage I approval.
- 04Submit a fully completed Stage II Business Plan and all required supplemental documents by the Stage II deadline.
- 05Secure the funding agreement before spending any money.
Who to ask: Phone: 1-844-573-9017; Email: FSIIP@ontario.ca
Documents commonly required
- Stage I Eligibility Checklist
- Stage I Application Form
- Stage II Business Plan
- Any other supporting documents the program asks for. Ask the program office which ones before you apply.
What to know before you count on it
- This is a performance-based loan, and up to half of it may be forgiven. Confirm on the official page when the loan money is paid out and how you repay it.
- Total government support for business projects cannot exceed 50% of eligible costs, and stacking with other provincial funding is not allowed.
- The program uses competitive rounds; if the budget is committed, you wait for the next round, so apply early.
- Any forgiven part of the loan, and any grant, may be taxable income; ask your accountant.
What are your odds?
This program uses competitive rounds, so meeting the rules does not mean you will be funded. The main risks are starting too early, an incomplete application, or the budget being committed.
Frequently asked questions
When do I get the money?
This is a performance-based loan. Confirm on the official page when the loan money is paid out and how you repay it.
Can I combine this with other Ontario grants?
No. Stacking with other provincial funding programs is not allowed for business projects. Total government support cannot exceed 50% of eligible costs.
Is the forgiven part taxable?
It may be. Any forgiven part of the loan, and any grant, can be taxable income. Ask your accountant.
What if my project is under $3 million?
You do not qualify. Projects must have at least $3 million in eligible costs.
More funding by what it pays for
What you can combine it with
Stacking with other provincial funding programs is not allowed for business projects; total government support cannot exceed 50% of eligible costs for business projects or 75% for collaboration projects.
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Worth reading before you apply
Get alerted when this changes
Programs open and close, budgets run out, rules change. We send one short email when something changes that matters for this program.
Page last updated ; status and deadline checked . Source: official program page.