Open
Source verified August 10, 2026
Forest Sector Investment and Innovation Program (IFIT) — Business projects
Supports strategic forest sector business investments in Ontario
Funding available
Up to 30% of project cost
Deadline
Open continuously
Location
Ontario, Canada
Who can apply
For-profit forest sector businesses registered to conduct business in Ontario.
See full eligibility
Overview
Forest Sector Investment and Innovation Program (FSIIP) — Business projects supports Ontario for-profit forest sector businesses with performance-based loans of up to 30% of eligible project costs, or grants up to 15% in exceptional circumstances, to improve competitiveness. Eligible projects include capital investments for productivity improvements, technology adoption, process or product innovation, and market expansion.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase production or service capacity
- Develop a new product or service
- Increase operational productivity
Eligible Funding
- Up to 30% of project cost
Eligible candidates
Eligible Industries
- All industries
Location
- Ontario
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Capital investment projects that improve the competitiveness of the applicant’s Ontario-based operations.
- Productivity improvement projects.
- Technology adoption projects.
- Process or product innovation projects.
- Market expansion projects.
Documents Needed
- Stage I Eligibility Checklist
- Stage I Application Form
- Detailed Stage II application or Stage II Business Plan
- Supporting documentation or required supplemental documents for Stage II
Official resources
Eligibility
Who is eligible?
- For-profit forest sector businesses registered to conduct business in Ontario.
- For-profit manufacturers and processors of wood and forest biomass across Ontario, such as sawmills and pulp and paper mills.
- Secondary wood manufacturers, such as wood cabinet, engineered wood products, and furniture makers.
- Bio-product manufacturers utilizing forestry-based inputs.
- Newly formed businesses (start-ups) may be considered on a case by case basis at the discretion of the province.
Who is not eligible
- Harvesting and hauling companies are not eligible under the business projects stream.
Eligible expenses
- Project facility construction, expansion, modifications, or upgrades directly attributable to and necessary for the project, subject to prior written approval by Ontario.
- Purchase or upgrade of equipment and machinery, including delivery and installation, and the non-interest portion of a capital lease.
- Project-related computer hardware and software, and direct materials used for prototypes, testing, employee training, or other project-approved purposes.
- One-time labour, research and development, consulting, scientific, engineering, design, and training costs directly attributable to the project.
- Market expansion, eligible travel transportation and accommodation, and certain project-related legal, accounting, and intellectual property protection costs.
Ineligible Costs and Activities
- Restructuring and mergers and acquisitions, including the purchase of an existing business.
- Ongoing production or operating costs, including labour, materials, overhead, and costs related to the production or provision of saleable products or services.
- Costs related to premises and general operations, such as rent, lease, utilities, property taxes, building maintenance, equipment depreciation and maintenance, and general working capital requirements.
- Purchase of land or buildings, rental of equipment, vehicles and off-site equipment costs, and project assets that will not be located at the project facility unless approved by Ontario.
- Meals, hospitality, memberships, travel except as outlined, business or project plan preparation, transaction costs, most legal and accounting costs except as outlined, and interest costs under capital leases.
Eligible geographic areas
- Ontario
Selection criteria
- Project outcomes, including support for Ontario’s competitive advantage through productivity, innovation and/or market expansion, and the number of new and/or retained jobs resulting from the project.
- Sector and cluster priorities and impacts, including strategic importance and benefits to Ontario’s broader forest sector beyond the applicant’s own operations.
- Regional impact and net economic impact, with priority given to projects that have measurable impact addressing regional disparities.
- Incrementality, meaning critical aspects of the proposed investment such as scope, scale, quantum and timelines will not happen without government support.
- Return on investment to the province, plus financial and technical due diligence including assessment and mitigation of financial, company, technical and public risks.
How to apply
- Register with Transfer Payments Ontario (TPON).
- Log in to your TPON account and complete the Stage I Eligibility Checklist and Application Form.
- If approved at Stage I, submit a fully completed Stage II Business Plan or detailed Stage II application with all required supporting documentation by the Stage II deadline.
Processing and Agreement
- Stage I submissions are reviewed for eligibility, alignment with FSIIP objectives and criteria, and comparison with other projects; applicants approved to move on to Stage II are notified in writing.
- Stage II applications and supporting documentation are evaluated and scored against the program’s objectives and criteria, including financial and technical due diligence, project risk assessment, and comparison with other projects in the same quarterly round.
- Upon receiving a signed business plan, proponents and business plans are subject to compliance checks covering health and safety, employment standards, environmental history, accessibility compliance, Ontario tax compliance, and planning compliance.
- Applicants approved for funding must enter into a funding agreement with the province, and no payments are made until the agreement is signed and any conditions for disbursement have been fulfilled.
- Recipients must provide evidence of eligible costs for disbursements, submit annual financial statements and project status reports, report annually on performance measures, and provide third party auditor certification of Eligible Costs, jobs and payroll at the Project completion date.
Additional information
- The program generally allows only one funding contract or project per applicant at a time, although multiple applications may be considered on a case by case basis for distinct projects at distinct mill sites.
- The program is competitive, discretionary, and non-entitlement, so meeting program objectives and eligibility criteria does not guarantee funding.
- Approved projects will be publicly announced, and ministries must publicly report annually on the project description, amount of government support, and results achieved to date.
- Any trade secret or scientific, commercial, technical, financial or labour relations information submitted in confidence should be clearly marked.
Contacts
Frequently Asked Questions about the Forest Sector Investment and Innovation Program (IFIT) — Business projects Program
What is the Forest Sector Investment and Innovation Program (IFIT) — Business projects?
Forest Sector Investment and Innovation Program (FSIIP) — Business projects supports Ontario for-profit forest sector businesses with performance-based loans of up to 30% of eligible project costs, or grants up to 15% in exceptional circumstances, to improve competitiveness. Eligible projects include capital investments for productivity improvements, technology adoption, process or product innovation, and market expansion.
How much funding can be received?
Forest Sector Investment and Innovation Program (IFIT) — Business projects Funds up to 30% of admissible expenses.
Who is eligible for the Forest Sector Investment and Innovation Program (IFIT) — Business projects program?
To be eligible for the Forest Sector Investment and Innovation Program (IFIT) — Business projects program, you must:
The applicant must be a for-profit forest sector business registered to conduct business in Ontario.
The business project must have at least $3 million in eligible project costs and improve the competitiveness of the applicant’s Ontario-based operations.
The applicant must demonstrate that government support is needed to implement the project.
What expenses are eligible under Forest Sector Investment and Innovation Program (IFIT) — Business projects?
Capital investment projects that improve the competitiveness of the applicant’s Ontario-based operations.
Productivity improvement projects.
Technology adoption projects.
Process or product innovation projects.
Market expansion projects.
Who can I contact for more information about the Forest Sector Investment and Innovation Program (IFIT) — Business projects?
You can contact Government of Ontario by email at FSIIP@ontario.ca or by phone at 1-844-573-9017.
Where is the Forest Sector Investment and Innovation Program (IFIT) — Business projects available?
The Forest Sector Investment and Innovation Program (IFIT) — Business projects program is available the province of Ontario.
Is the Forest Sector Investment and Innovation Program (IFIT) — Business projects a grant, loan, or tax credit?
Forest Sector Investment and Innovation Program (IFIT) — Business projects is a Grant and Funding