Deadline: 17-Jun-22
The Government of Ontario is inviting applications for the Forest Sector Investment and Innovation Program (FSIIP) to create a business climate that fosters growth, promotes innovation, and helps the industry adapt to an ever-changing business climate.
The FSIIP will focus on projects that benefit the applicant, the regional economy in which they are located, and Ontario’s forest sector overall.
The FSIIP will 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.
The FSIIP will be a key tool in building Ontario’s productive and innovative capacity to create jobs of today and tomorrow by encouraging the development of products, services and processes for diverse markets, and the integration of them in the regional and global supply chain.
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.
Strategic Sectors
The Forest Sector Investment and Innovation Program (FSIIP) provides funding for strategic investments in the forest sector that:
- improve productivity and innovation
- enhance competitiveness
- support new market access
- provide benefits to Ontario’s broader forest sector
- strengthen regional economies
Funding Information
- Business projects
- 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).
- Grants of up to 15% of eligible costs may be considered in exceptional situations at the discretion of the province.
- Stacking with other provincial funding programs is not allowed. Stacking with other government support (for example, federal or municipal) is allowed to a maximum of 50% of eligible project costs.
- Collaboration projects
- You can receive funding support of up to 30% of eligible costs in the form of a grant to a maximum of $3 million.
- Stacking with other government funding programs (for example, federal, provincial and municipal) is allowed to a maximum of 75% of eligible project costs.
Outcomes
- Productivity:
- support a highly-skilled workforce
- increase industrial efficiency, technological development, product innovation and product variety
- adopt leading-edge technology
- Innovation:
- build R&D / commercialization capabilities
- foster collaboration between partners
- embed innovation into business climate
- drive innovative products, technology and production processes
- Market expansion:
- strengthen ability to compete in world markets
- greater access to markets
- foster domestic, international and interprovincial trade
- Regional impact:
- project will have a positive impact on regional economies in which the company operates
- evaluation will give greater weight to the impact of a project on regions and communities experiencing regional disparities
- Sectoral importance:
- project will have a positive impact on Ontario’s broader forest sector
- project addresses sectoral needs and priorities
Ineligible Projects
The following categories of projects are not eligible for funding under the program:
- restructuring
- mergers and acquisitions (such as purchase of an existing business)
- Determination of eligibility for funding is at the sole discretion of the province.
Eligibility Criteria
The following entities are eligible to be considered for funding:
- Business projects
- Support is available for projects with at least $3 million in eligible costs undertaken by for-profit manufacturers and processors of wood and forest biomass across Ontario, including:
- saw mills
- pulp and paper mills
- secondary wood manufacturers
- bio-economy projects
- Harvesting and resource extraction projects are not eligible for funding.
- Support is available for projects with at least $3 million in eligible costs undertaken by for-profit manufacturers and processors of wood and forest biomass across Ontario, including:
- Collaboration projects
- Support is available for Ontario-based projects with at least $3 million in eligible costs undertaken through a collaboration of:
- forest sector for-profit businesses
- not-for-profit research organizations
- forest industry associations
- academia
- Support is available for Ontario-based projects with at least $3 million in eligible costs undertaken through a collaboration of:
Eligible collaborations should develop, diversify and transform Ontario’s forest sector through innovation in technology, process and/or products.
A minimum of three partners are required (including at least one Ontario-based for-profit forestry/wood products company).
Selection Process
To be selected for funding, projects must:
- demonstrate strong alignment with the program’s objectives, which are to:enhance productivity and competitiveness
- increase innovation
- create greater market access for Ontario firms
- improve the competitiveness of Ontario’s broader forest sector
- strengthen regional economies
- demonstrate need for government financial support to complete the project and have sufficient funding to complete the project (when combined with proposed support from FSIIP).
- pass a two-stage project evaluation process:
- Stage I: project overview to determine whether project meets eligibility criteria and assessment of how well the project aligns with the objectives of the program
- Stage II: competitive, rounds-based project evaluation process, including financial and technical due diligence
For more information, visit https://www.ontario.ca/page/forestry-sector-investment-innovation-program#section-5