Forest Sector Investment and Innovation Program (IFIT) — Business projects
ON, Canada
Financial assistance for forestry projects in Ontario
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|fromMinToMax
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateJanuary 01, 2023
- grant_single|closingDateMarch 31, 2023
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
grant_single|grantors
- Government of Ontario
- Ministry of Natural Resources and Forestry (ON)
grant_single|status
grant_card_status|openingSoon
grant_single_labels|preview
If you are a manufacturer or processor of wood or forest biomass, you could get a performance-based loan to cover up to 30% of eligible costs for projects that improve productivity and innovation.
grant_single_labels|terms_and_conditions
This program provides funding options to enhance the competitiveness and innovation capacities of Ontario's forest sector. The financing modalities are designed to support either business or collaboration projects through grants and loans to achieve strategic economic objectives.
- Business projects can apply for either a loan or a grant, capped at 30% and 15% of eligible project costs respectively.
- Performance-based loans offer a maximum of 30% of eligible project costs, with a forgivable portion of up to 50% if specific targets are met.
- Interest on loans is charged at Ontario's borrowing cost plus 3% during the repayment period post project completion.
- Grants for business projects may exceed the standard 15% cap under exceptional strategic circumstances, as decided by the province.
- Collaboration projects may receive grants covering up to 30% of eligible costs to a maximum of $3 million.
- Collaboration projects allow stacking with municipal, other provincial, and federal funds, with combined government funding not exceeding 75% of eligible costs.
- Business projects allow stacking with federal and municipal funds, ensuring total government assistance does not surpass 50% of eligible costs.
- Program generally restricts one funding contract per applicant at any given time, considering multiple contracts on a case-by-case basis if for distinct projects at different sites.
- Funding is contingent upon signing a detailed funding agreement with the government post-approval.
- Performance-based disbursements, with a portion held until project fulfillment to ensure compliance with set targets.
- Funding agreements include mechanisms for pro rata clawbacks or reduced forgivable loan portions if commitments are unmet.
grant_single_labels|projects
The Forest Sector Investment and Innovation Program (FSIIP) aims to bolster Ontario's forestry sector through targeted business and collaborative projects. Eligible activities focus on enhancing productivity, innovation, market expansion, and regional economic impact.
- Capital investment projects by for-profit forestry companies aimed at enhancing productivity and competitiveness.
- Technology, process, or product innovation initiatives to improve industrial efficiency and technological development.
- Market expansion projects to strengthen the ability of Ontario-based operations to compete in global markets.
- Collaboration projects involving multiple partners focused on transformative impacts through first-in-kind innovations in the forestry sector.
grant_single|admissibleProjectsExample
$ 75,000
Implementing new software to manage wood inventory efficiently
$ 54,000
Developing an eco-friendly packaging solution for wood products
$ 135,000
Research and development of a new sustainable wood treatment process
$ 318,000
Upgrading sawmill equipment and increasing production efficiency
$ 196,500
Introducing automated processing in wood pellet production
grant_single_labels|admissibility
Eligibility for this grant is determined by specific requirements related to the applicant's profile and proposed activities.
- The applicant must be an Ontario forest and wood products corporation, extra-provincial forest and wood products corporation, federal forest and wood products corporation, or foreign forest and wood products corporation with an incorporated Canadian/Ontario subsidiary.
- Eligible applicants can also include 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 are also eligible to apply.
- Start-ups that meet program objectives can be considered on a case-by-case basis, provided they demonstrate financial capacity and relevant operational and management experience.
- For the Business projects stream, eligible projects must have a minimum project cost of $3 million, and applicants must be for-profit manufacturers or processors of wood and forest biomass across Ontario (e.g., sawmills, pulp and paper mills). Harvesting and hauling companies/projects are not eligible.
- For the Collaboration projects stream, eligible projects must also have a minimum cost of $3 million and involve at least three project partners, including one Ontario-based for-profit forestry and wood products company.
- Eligible project partners in the Collaboration stream can include forestry-related not-for-profit corporations, not-for-profit industry associations, Ontario forest and wood products corporations, as well as post-secondary education institutions.
grant_eligibility_criteria|who_can_apply
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.
grant_eligibility_criteria|who_cannot_apply
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.
grant_eligibility_criteria|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.
grant_eligibility_criteria|zone
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.
grant_single_labels|criteria
The evaluation and selection of projects for the Forest Sector Investment and Innovation Program (FSIIP) are based on detailed criteria designed to assess the project's alignment with the program's objectives and potential impact on Ontario's forest sector.
- Project outcomes: The proposal must support the strengthening of Ontario’s competitive advantage through productivity, innovation, and/or market expansion, either domestically or globally.
- Jobs: Evaluation of the number of new and/or retained jobs resulting from the project.
- Sector/Cluster Priorities and Impacts: Alignment with sector and cluster priorities, indicating strategic importance to Ontario’s broader forest sector.
- Regional Impact/Net Economic Impact: Assessment of the project's positive impacts on regional economies, with priority given to those addressing regional disparities.
- Incrementality: Determination of the necessity of government support for the project's scope and timeline.
- Return on Investment: For business projects, the evaluation includes whether the government will achieve a positive return on its investment.
- Due Diligence: Comprehensive assessment of potential risks and alignment with financial and technical standards.
- Compliance Assessment: Conformance with labor, environmental, accessibility, and tax obligations.
grant_single_labels|register
- Step 1: Register with TPON
- Create an account on the Transfer Payments Ontario (TPON) portal if you don't already have one.
- Provide all necessary details for registration.
- Step 2: Login and Complete Stage I
- Login to your TPON account using your credentials.
- Complete the Stage I eligibility checklist to determine if your project aligns with program objectives.
- Fill out the initial application form.
- Ensure all required fields are completed before submission.
- Step 3: Notification of Stage I Outcome
- Wait for notification from the Ministry regarding the outcome of the Stage I assessment.
- If successful, proceed to Stage II.
- Step 4: Complete Stage II Application
- Prepare a detailed Stage II application, including all supporting documentation.
- Submit the Stage II application through the TPON portal.
- Ensure all information is accurate and complete to avoid deferral to the next round.
- Step 5: Notification of Stage II Project Evaluation
- Await the evaluation decision, which will include a comprehensive assessment of your project.
- Receive funding decision and instructions for entering into a funding agreement if approved.
grant_single_labels|otherInfo
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.
grant_single_labels|documents
grant_single_labels|contact
FSIIP@ontario.ca
1-844-573-9017
Apply to this program
Boosting Innovation in Ontario's Forest Sector
The Forest Sector Investment and Innovation Program (FSIIP) offers significant funding opportunities for Ontario-based forestry and wood products businesses seeking to enhance their productivity and market reach. This program is designed to support both individual business initiatives and collaborative projects that drive transformative changes across the forest sector, thereby fortifying regional economies.
Unlocking New Opportunities Through FSIIP
The Forest Sector Investment and Innovation Program (FSIIP) stands as a strategic initiative by the Government of Ontario to fortify and transform the forest sector through incentivized investments. The program addresses crucial economic priorities by funding projects that drive productivity, foster innovation, and promote market expansion. By offering two distinct streams — business projects and collaboration projects — FSIIP ensures that various avenues for growth and development are well-catered to within the forest industry.
Under the business projects stream, eligible companies can apply for funding through either a forgivable performance-based loan or a grant, aimed at covering substantial portions of eligible project costs. These funds are crucial for driving technological advancements, process improvements, and expanding operational capacities, which ultimately elevate the competitiveness of the applicants' operations across Ontario. The collaboration projects stream, on the other hand, supports comprehensive partnerships that involve multiple stakeholders, including Ontario-based for-profit forestry companies and academic institutions. This approach encourages a unified advancement of the sector, integrating innovative practices across various segments.
FSIIP is meticulously aligned with Ontario's broader Forest Sector Strategy, which envisions creating a robust environment that not only embraces change but also thrives amidst a rapidly evolving economic landscape. By focusing investment on projects that yield diverse regional and provincial benefits, FSIIP contributes significantly to job creation and economic stability in communities, particularly those experiencing regional disparities.
Crucial to the success of the FSIIP are the established performance measures, which allow for a quantifiable evaluation of the program’s achievements. These measures include assessing the number of jobs created and retained, alongside improvements in productivity and utilization of wood resources. Moreover, the program ensures that funded projects contribute positively to the broader supply chain, enhancing trade capabilities both domestically and internationally.
For businesses and collaborative groups looking to tap into these opportunities, a comprehensive understanding of the program’s eligibility criteria and submission requirements is essential. With a stringent evaluation process spanning multiple stages, applicants are urged to carefully prepare their project proposals, highlighting how their initiatives align with FSIIP's core objectives. A well-articulated project scope that outlines innovation, potential impacts, and strategic alignment can enhance the chances of securing funding.
With annually limited funding rounds, FSIIP fosters a competitive environment where only the most impactful and strategically aligned projects are selected for financial support. This ensures that public resources are allocated efficiently, maximizing the tangible benefits realized across Ontario’s forest sector.
The FSIIP not only acts as a conduit for financial aid but also as a catalyst for industry-wide collaboration and innovation. By participating in this program, stakeholders gain the opportunity to contribute to a sustainable and thriving forest economy, reinforcing Ontario's position as a leader in forestry innovation. This initiative paves the way for a forward-looking industry that drives economic prosperity and sustainable development in the forest sector.
