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

Who is eligible?

• For-profit manufacturers and processors of wood and forest biomass in Ontario.
• Forest sector-related not-for-profit organizations.
• Ontario-based post-secondary education institutions.
• Project partners in collaboration projects, including industry associations and academia.

Who is not eligible

• Harvesting and hauling companies.
• Projects involving restructuring.
• Mergers and acquisitions.

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.

Ineligible Costs and Activities

• Harvesting and hauling projects.
• Restructuring projects.
• Mergers and acquisitions.

Eligible geographic areas

• Ontario

• 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.

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.