Forest Sector Investment and Innovation Program — Collaboration projects
ON, Canada
Funding for collaborative forestry projects in Ontario
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Grant and Funding
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
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- Government of Ontario
- Ministry of Natural Resources and Forestry (ON)
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grant_card_status|opengrant_card_status|closingSoon
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Access a grant of up to $3 million to cover up to 30% of eligible costs for partnership projects among at least three partners that improve productivity and innovation, develop, diversify and transform Ontario’s forest sector through innovation in technol
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Yes, there are projects and activities eligible for this grant.
- Process innovation/modernization with broad application
- Product innovation, new product development with benefits up and down the supply chain
- Product innovation, new product development with broad benefits across Ontario’s forest sector and/or other related sectors of Ontario’s economy
grant_single|admissibleProjectsExample
$2,400,000
Toronto
Develop a cutting-edge biomass conversion facility to improve energy efficiency in Toronto.
$1,050,000
Ottawa
Implement a digital platform for sustainable forest management in Ottawa.
$2,100,000
Vancouver
Create a new line of eco-friendly forest-derived packaging products in Vancouver.
$2,400,000
Montreal
Establish a forest sector innovation hub in Montreal for research and development.
$1,350,000
Halifax
Launch an online marketplace for sustainably sourced forest products in Halifax.
$1,800,000
Calgary
Enhance wood construction technology and practices in Calgary.
grant_single_labels|admissibility
The eligibility criteria for the Forest Sector Investment and Innovation Program include specific requirements for the types of entities that can apply as well as the nature of the projects. The criteria focus on ensuring that the applicants are closely connected to Ontario's forest and wood products sector and that the projects align with the program's objectives of fostering innovation, productivity, and market expansion.
- Ontario forest and wood products corporations
- Extra-provincial forest and wood products corporations
- Federal forest and wood products corporations
- Foreign forest and wood products corporations (provided they have incorporated a Canadian/Ontario subsidiary and such entity will be the applicant)
- 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
- Newly-formed companies (“start-ups”) may be considered on a case by case basis, provided the project meets objectives of the program
grant_eligibility_criteria|who_can_apply
Yes, there are eligible types of companies for this grant. The following entities can be considered for funding under the Forest Sector Investment and Innovation Program.
- Ontario forest and wood products corporations
- Extra-provincial forest and wood products corporations
- Federal forest and wood products corporations
- Foreign forest and wood products corporations (provided they have incorporated a Canadian/Ontario subsidiary)
- 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
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Yes, specific types of projects are not eligible for this grant even if undertaken by eligible entities.
- Projects involving restructuring
- Projects involving mergers and acquisitions, such as the purchase of an existing business
grant_eligibility_criteria|eligible_expenses
Yes, there are eligible expenses for this grant. Eligible project costs must be directly attributable to the project and must be incurred and paid on or after the effective date of the funding agreement and up to the project completion date.
- Project facility modifications/upgrades required for the project
- Equipment and machinery
- Capital lease (non-interest portions)
- Computer hardware/software/electronics
- Materials directly related to the project
- One-time labour costs
- Research and development costs
- Training costs directly attributable to the project
- Market expansion costs
- Travel expenses meeting specific criteria
- Legal/accounting fees related to the project
grant_eligibility_criteria|zone
The eligible geographic zones for this grant focus on entities with an Ontario presence.
- Ontario forest and wood products corporations
- Extra-provincial forest and wood products corporations
- Federal forest and wood products corporations
- Foreign forest and wood products corporations, provided they have incorporated a Canadian/Ontario subsidiary
- Forestry-related not-for-profit corporations
- Ontario-based post-secondary education institutions
grant_single_labels|criteria
Yes, there are evaluation and selection criteria for this grant. Applications are evaluated based on project outcomes, sectoral impacts, regional impacts, incrementality, net positive return on investment, and due diligence.
- Project outcomes
- Sector/cluster priorities and impacts
- Regional impact/net economic impact
- Incrementality
- Net positive return on investment
- Financial and technical due diligence
- Ministry compliance assessments
grant_single_labels|register
- Step 1: Register with Transfer Payments Ontario (TPON)
- Step 2: Login to your TPON account
- Step 3: Complete the stage I eligibility checklist and application form
- Step 4: Receive notification of decision to advance to stage II within 10 business days of receipt of a completed stage I eligibility checklist and application form
- Step 5: Complete and submit a detailed stage II application and all supporting documentation within 15 business days of approval to move on to stage II
- Step 6: Undergo a comprehensive and in-depth evaluation of the stage II application within 65 business days of submission
- Step 7: Enter into a funding agreement with the province if the application is approved
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Here are miscellaneous additional details regarding the funding grant:
- All project costs must be incurred and paid on or after the effective date of the funding agreement and up to the project completion date.
- Funding agreements require commitments related to maintaining the company's Ontario footprint, employment, and investment.
- Project costs that are eligible for reimbursement must be recorded with documentation and are subject to verification by an independent auditor.
- Bonus payments are eligible if they are non-discretionary, related to a pre-determined rate tied to employee performance targets, and given to non-executive employees.
- Performance measures must be provided annually under the funding agreements to assess the program's effectiveness against key objectives like productivity, innovation, market expansion, regional impact, and sectoral importance to Ontario's forest sector.
- Projects will undergo a compliance check with several ministries including Labour, Environment, and Finance for issues like health and safety records, employment standards, and tax compliance.
- For grants, 20% of the total funding will be disbursed only after the project has been fully completed according to the agreement.
- Funding agreements include clawback provisions if job, investment, or payroll commitments are not met by the completion date.
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FSIIP@ontario.ca
1-844-573-9017
Apply to this program
Grant Summary: Forest Sector Investment and Innovation Program
The Forest Sector Investment and Innovation Program (FSIIP) provides funding to Ontario-based wood product manufacturers and processors to encourage innovation and market expansion, improve productivity, and strengthen regional economies and supply chains. Eligible projects must align with the program's objectives of fostering technological development, economic growth, and innovation within Ontario's forest sector.
Detailed Explanation of the Forest Sector Investment and Innovation Program (FSIIP)
The Forest Sector Investment and Innovation Program (FSIIP) is a strategic initiative by the Government of Ontario designed to bolster the province's forest sector. The program targets both business and collaboration projects that promise to enhance productivity, increase innovation, and foster market expansion. With a specific focus on leveraging technology and specialization, FSIIP aims to make a transformative impact on Ontario’s broad forest and wood products sector.
Objectives of FSIIP
The primary goal of FSIIP is to create an environment conducive to innovation and economic growth within the forest sector. The program focuses on: 1. **Productivity**: By supporting a highly skilled workforce and promoting the adoption of advanced technology and processes, FSIIP helps increase industrial efficiency, introduce product variety, and drive technological development. 2. **Innovation**: FSIIP fosters research and development (R&D) and commercialization capabilities, encourages collaboration among partners, and integrates innovative practices into the business climate. 3. **Market Expansion**: The program aims to enhance the ability of Ontario enterprises to compete in global markets, improve market access, and promote domestic, international, and interprovincial trade. 4. **Regional Impact**: Greater weight is given to projects that have a transformative impact on regional economies, especially those regions experiencing economic disparities. 5. **Sectoral Importance**: The program emphasizes projects that address sectoral needs and priorities, benefiting Ontario’s broader forest and wood products sector.
Eligibility Criteria
To be considered for funding under FSIIP, applicants and projects must meet the following criteria: - **Eligible Applicants**: Ontario- and extra-provincial-based forest and wood products corporations, federal forest and wood products corporations, and foreign forest and wood products corporations (provided they have a Canadian/Ontario subsidiary). In addition, forestry-related not-for-profits and Ontario-based post-secondary institutions can apply. - **Eligible Projects**: The program supports projects that either involve significant capital investment by for-profit forestry companies or collaborative efforts by various stakeholders (including at least one for-profit forestry or wood products company). - **Ineligible Projects**: Restructuring activities, mergers, and acquisitions are not funded under FSIIP.
Funding Allocation and Stacking
FSIIP offers grants covering up to 30% of eligible project costs, with a maximum funding cap of $3 million. For collaboration projects, funding from various government sources can be combined, provided the total government funding does not exceed 75% of the project’s eligible costs. Each applicant is generally permitted to hold only one funding contract/project at a time, though exceptions may be made on a case-by-case basis.
Application and Evaluation Process
The application process for FSIIP involves two stages: 1. **Stage I - Preliminary Assessment**: - Applicants complete an initial eligibility checklist and application form, which includes an overview of the project and its alignment with program objectives. - Ministry program staff assist in evaluating if the project meets the guidelines and how well it aligns with FSIIP criteria. - Notification of advancement to Stage II is provided within 10 business days of the completed Stage I application. 2. **Stage II - Detailed Evaluation**: - Applicants submit a comprehensive application and supporting documentation within 15 business days after Stage I approval. - In-depth evaluation includes financial and technical due diligence, project risk assessment, and a thorough review based on FSIIP’s criteria. - Projects are scored and ranked, with priority given to those with greater impact on productivity, innovation, regional economies, and Ontario’s broader forest sector.
Evaluation Criteria
Projects are assessed based on: - **Project Outcomes**: Alignment with goals of improving competitive advantage through productivity, innovation, and market expansion. - **Sector/Cluster Priorities**: Strategic importance to Ontario’s forest sector. - **Regional Impact**: Positive social and economic impact on regional economies, especially in areas facing economic disparities. - **Incrementality**: Demonstration that the project will not proceed without government support and will generate a net positive return on investment. - **Due Diligence**: Comprehensive identification and mitigation of financial, technical, and public risks.
Funding Agreements and Clawbacks
Successful applicants are required to sign a funding agreement with the province, detailing project commitments, funding disbursements, and clawback provisions. Disbursements are typically made in arrears, and a portion (usually 20%) is withheld until after project completion. Clawbacks are applied if project commitments related to investment, jobs, and payroll are not met by set deadlines.
Eligible Project Costs
Eligible costs under FSIIP include: - **Facility Modifications/Upgrades**: Necessary modifications directly attributable to the project, such as the installation of project-related equipment. - **Equipment and Machinery**: Costs for purchasing or upgrading necessary equipment and machinery, including delivery and installation expenses. - **Capital Lease and Software**: Non-interest portions of capital lease payments and specialized project-related hardware/software. - **Materials**: Direct materials used for project completion, such as prototypes and configuration/testing materials. - **One-Time Labour Costs**: Salaries, wages, and benefits for employees directly involved in the project, as well as costs for developing new market access. - **Research and Development**: Costs directly attributable to R&D, including consulting services from third-party firms or institutions. - **Training and Market Expansion**: Training costs within or outside Ontario (subject to approval), market certification/testing, and development of new products in new markets. - **Travel, Legal, and Accounting**: Project-related travel (economical options only), intellectual property protection fees, and accounting/reporting expenses directly related to the project. Ineligible costs include ongoing production costs, general operational expenses, equipment depreciation, rental costs, business plan preparation, and costs not incurred in Ontario, among others.
Performance Measures
FSIIP tracks several mandatory performance measures, including gross margin percentage, total sales revenue, export sales, and active employees. Additional measures for wood utilization, such as improvements in yield or recovery rate, are also monitored.
Confidentiality and Public Reporting
The Ministry of Natural Resources and the Ministry of Economic Development, Job Creation, and Trade adhere to the Freedom of Information and Protection of Privacy Act (the Act), ensuring the confidentiality of trade secrets and other sensitive information submitted in confidence. Approved projects are subject to public announcements and annual reporting on project status, government support, and achieved results.
Conflict of Interest Guidelines
Applicants must avoid conflicts of interest that could compromise the integrity of the application process. This includes avoiding unfair advantages, influencing preferred treatment, or engaging in conduct that undermines the fairness of the funding process. In essence, the Forest Sector Investment and Innovation Program offers a robust framework of financial support designed to stimulate innovation, productivity, and economic growth within Ontario's forest sector, ensuring sustainable development while addressing regional disparities and fostering market expansion.