Forest Sector Investment and Innovation Program (Round 15) – Canada

Deadline: 16-Jun-23

Applications are now open for the Round 15 of the Forest Sector Investment and Innovation Program to provide funding for manufacturers and processors of wood products across Ontario.

Objectives

• 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.
• The Forest Sector Investment and Innovation Program is a key component of Ontario’s Forest Sector Strategy which strives to create a business climate that fosters growth, promotes innovation, and helps the industry adapt to an ever-changing business climate. FSIIP will focus on projects that benefit the applicant, the regional economy in which they are located, and Ontario’s forest sector overall.

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
• Support is available under two project categories – business projects and collaboration projects.

Funding Information

• Business projects:
  • Applicants may apply for either a loan or a grant, not both.
    • Performance based loans:
      • up to a maximum of 30% of eligible project costs
      • forgivable portion (if job, investment, and payroll targets met) to a maximum of 50% of the loan amount
      • during the repayment period, after the project completion date, interest will be charged at Ontario’s cost of borrowing plus 3%
    • Grants:
      • up to a maximum of 15% of eligible project costs may be considered in exceptional circumstances at the sole discretion of the province for projects of strategic importance to the province
• Collaboration projects:
  • Grants:
    • up to a maximum of 30% of eligible project costs to a maximum of $3 million

Principles and 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

Eligibility Criteria

• The following entities are eligible to be considered for funding:
  • Ontario forest and wood products corporations
  • extra-provincial forest and wood products corporations
  • federal forest and wood products corporations
  • foreign forest and wood products corporations provided they have incorporated a Canadian/Ontario subsidiary and such entity will be the applicant
  • forestry-related not-for-profit corporations (such as incorporated research/science-based organizations or not-for-profit industry associations)
  • Ontario-based post-secondary education institutions
• Newly-formed companies (“start-ups”) may be considered on a case by case basis, at the discretion of the province, provided the project meets objectives of the program.
  • New plant/facility in Ontario, but with owners that can demonstrate the financial capacity to undertake the project and have relevant operational and management experience (including operating mills in another jurisdiction).
  • Spin-outs or newly established subsidiaries of established companies that do not yet have plant or facility in Ontario but can demonstrate the financial capacity to undertake the project and have relevant operational and management experience.

For more information, visit Ministry of Natural Resources and Forestry.