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

Who is eligible?

Eligible entities for the Forest Sector Investment and Innovation Program (FSIIP) include Ontario, extra-provincial, federal, and foreign forest and wood products corporations (the latter must have a Canadian/Ontario subsidiary), forestry-related not-for-profit corporations, and Ontario-based post-secondary education institutions. Newly-formed companies or startups may also be considered if they can demonstrate financial capacity and relevant management experience.

Who is not eligible

This grant has specific exclusions to ensure alignment with its objectives. Companies that fall under certain categories based on their primary activities or project scope may not be eligible for funding.

• Harvesting and hauling companies/projects.
• Projects related to restructuring, mergers, and acquisitions.
• Projects receiving funding from other Ontario programs for the same scope, with specified exceptions.

Eligible expenses

Projects eligible for this grant are designed to enhance competitiveness, foster innovation, and expand market access within Ontario's forest and wood products sector. These initiatives aim to have significant economic and social impacts on both regional and broader provincial scales.

• Capital investment projects aimed at improving industrial efficiency and technological development.
• Innovative technology development and implementation for product, service, and process innovation to enhance competitiveness.
• Market expansion efforts to increase access to domestic and international markets.
• Process modernization projects with broad application across the forest sector.
• Product innovation and new product development with supply chain benefits.
• Collaborative projects involving industry partners, not-for-profits, and academia focused on transformative innovations.

Eligible geographic areas

This grant is specifically targeted at businesses operating within Ontario, Canada, as determined by the guidelines of the funding program. Eligible companies must demonstrate significant contributions within this geographical area to be considered.

• Companies must have operations based in Ontario, Canada.
• Eligible applicants include Ontario forest and wood products corporations.
• Foreign corporations must establish a Canadian/Ontario subsidiary to be eligible.

Here are additional relevant details for this grant:

• Applicants should not incur costs predicated on receiving funding until a legal agreement is in place and funding is confirmed.
• Applicants must enter into a funding agreement with specific terms including jobs, investment commitments, and clawbacks for non-compliance.
• The program allows stacking with federal and municipal funding, but total government support must not exceed stipulated limits.
• Process involves external and internal due diligence to assess financial and project risks.
• The program runs four competitive rounds per year, and approval is not guaranteed even if criteria are met.
• Mandatory performance measures include job creation, sales revenue, and wood utilization metrics.
• Confidentiality agreements are enforced during due diligence by external advisors.