Forest Sector Investment and Innovation Program (IFIT) — Business projects

• Stage II Business Plan

Who is eligible?

• For-profit forest sector businesses registered to conduct business in Ontario, including manufacturers and processors of wood and forest biomass.
• Forest sector-related not-for-profit organizations, such as research organizations or industry associations, under the collaboration projects stream.
• Ontario-based post-secondary education institutions under the collaboration projects stream.
• Newly formed businesses may be considered on a case by case basis.

Who is not eligible

• Harvesting and hauling companies are not eligible under the business projects stream.

Eligible expenses

• Project facility construction, expansion, modification, or upgrades directly attributable to the project, including interior power lines, gas lines, special ventilation, and leasehold improvements, subject to Ontario approval.
• New or used equipment and machinery required for the project, including delivery and installation costs, and moving and installation costs for existing equipment moved to a new location for the project.
• Project-related computer hardware and software, direct materials, and one-time labour costs directly attributable to the development and implementation of the project.
• Research and development, training, and market expansion expenses directly attributable to the project.
• Project-related travel transportation and accommodation, intellectual property protection fees, and accounting expenses associated with generating project reporting.

Ineligible Costs and Activities

• Restructuring and mergers and acquisitions, including the purchase of an existing business.
• Harvesting and hauling companies or projects are not eligible under the business projects stream.
• Ongoing production or operating costs, including ongoing labour, materials, overhead, and costs related to the production or provision of saleable products or services.
• Rent, lease, utilities, property taxes, building maintenance, land or building purchases, equipment rental, depreciation, and maintenance.
• Meals, hospitality, memberships, business or project plan preparation, and travel except as specifically allowed by the program.

• Alignment with program objectives for productivity, innovation, market expansion, regional impact, and sector strength.
• Number of jobs created or retained.
• Impact on regional economies and broader forest sector benefits.
• Need for government support to complete the project.
• Financial and technical due diligence.

• Register with Transfer Payments Ontario (TPON).
• Log in to your TPON account and complete the Stage I Eligibility Checklist and Application Form.
• If you pass Stage I, submit a fully completed Stage II Business Plan and all required supplemental documents by the Stage II deadline.

• The application is reviewed in two stages: Stage I preliminary assessment and Stage II project evaluation.
• Stage I applicants are notified in writing if they advance to Stage II.
• Stage II includes detailed assessment, scoring, and due diligence before a funding decision is made.
• Approved applicants must sign a funding agreement before any payment is made.
• Funding may be subject to clawbacks or reduced forgivable amounts if commitments are not met.

• Approved projects will be the subject of public announcements.
• Ministries must publicly report annually on project descriptions and project investment commitments, the 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 confidential.
• Conflicts of interest include unfair advantage in the application process and outside commitments, relationships, or financial interests that could interfere with objective, unbiased, and impartial judgment relating to the project or the use of funding.