Forest Sector Investment and Innovation Program (FSIIP) — Business Projects
Compared with the 242 other application forms we have read
- Scored mainly on what it puts back into the local economy. 19 lead with that.
- Only 2 written answers, against a median of 5.
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Eligibility & Details
What this program funds and who can apply
Program Description
Performance-based loans (up to 30% of eligible costs, with up to 50% forgivable) for Ontario's for-profit forest sector manufacturers investing in capital projects of $3 million or more. Targets sawmills, pulp and paper mills, secondary wood manufacturers, and bio-product producers pursuing productivity, innovation, and market expansion. Four competitive rounds annually.
Eligibility Requirements
- For-profit forest sector business registered to conduct business in Ontario
- Minimum eligible project costs of $3,000,000
- Manufacturer or processor of wood or forest biomass (sawmills, pulp/paper, secondary wood, bio-products)
- Able to demonstrate financial capacity and relevant management experience
- Must comply with health and safety, employment standards, environmental, and AODA requirements
- Tax compliant and in good standing with municipal planning
Quick Assessment
Funding Details
- Amount
- Up to 30% of eligible costs as a performance-based loan (up to 50% forgivable); grants up to 15% in exceptional cases
- Type
- Forgivable Loan
- Level
- Provincial
- Financing share
- Up to 30% of eligible costs
- Deadline
- Ongoing — four rounds annually (next Stage I: varies)
Program Scorecard
Competition, effort, and approval at a glance
Difficult — significant preparation needed
High competition — many applicants
Very complex — extensive preparation required
How to qualify
Insider tips, common pitfalls, and what successful applicants look like
Insider TipThe forgivable portion (up to 50% of the loan) is tied to meeting performance commitments — job creation, payroll targets, and investment amounts.
Success Profile
Evaluation Criteria
How the Government of Ontario judges your application
What the reviewer scores, what gets applications rejected, and what to write.
Distilled from 3 source documents, condensed into one brief. Sources as of 2026-09-07.
3 sources
- Forest Sector Investment and Innovation Program ontario.ca
- Forest Sector Investment and Innovation Program guidelines ontario.ca
- Transfer Payment Ontario login tpon.gov.on.ca
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What the Government of Ontario favours
Productivity, innovation, market expansion, regional economies and supply chains◦
“Improve productivity, increase innovation, support market expansion, strengthen regional economies and supply chains, and positively impact Ontario’s broader forest sector.”
The form
Stage I screening
- 1Stage I — preliminary assessment
Stage II evaluation
- 2Stage II — project evaluation
the Government of Ontario states no length limits for these answers.
Judged against
- 1
Does the project lift Ontario’s broader forest sector?
Show them Quantify gains that reach regional economies and other forest-sector players, not just your own operation.◦
In the funder’s words · 2
- Regional economies
- Ontario’s broader forest sector (meaning benefits of the project beyond that of the applicant)
- 2
Will your own Ontario operations gain?
What to show, and the funder’s 1 criterion behind it in Premium
- 3
Will it survive financial and technical due diligence?
What to show, and the funder’s 2 criteria behind it in Premium
- 4
Do you meet the eligibility gates?
What to show them in Premium
Where applicants fail
“All required information must be provided. Please note that incomplete or missing information may result in your application being declined or deferred to a following round.”
“Application is competitive and discretionary; eligibility does not guarantee funding.”
Premium · the rest of this brief
See all 5 rules that can reject you and every criterion you are judged on. Then we draft your application for you.
2 more rules that can reject you · 3 more criteria
Do you pass?
Each one can rule you out. Tick the ones you meet.
Your business
For-profit Ontario forest business
For-profit forest sector business registered to conduct business in Ontario.
The project
Project costs at least $3 million
Business-stream minimum eligible project costs of $3 million.
Not harvesting or hauling
Harvesting and hauling companies/projects are not eligible.
The money
Minimum project cost$3 million minimum eligible project cost
Business-stream minimum eligible project costs of $3 million.
Loan or grantLoan 30% or grant 15%
Business projects: loan up to 30% of eligible costs, or grant up to 15% in exceptional circumstances; not both.
Stacking limitNo other Ontario funding; 50% stacking
No other project-specific Ontario programme funding; federal and municipal stacking permitted to 50% of eligible project costs.
Payment and holdbackReimbursement-based; 20% performance holdback
Payments are reimbursement-based and subject to agreement terms; a 20% performance holdback applies under the published framework.
StackingNo other Ontario programme funding; 50% max
No other project-specific Ontario programme funding; federal and municipal stacking permitted to 50% of eligible project costs.
Costs before approvalDo not incur costs before approval
Applicants should not incur costs predicated on receiving funding before approval and agreement.
What it pays for · 11
- Project facility modifications/upgrades required for the project
- Equipment and machinery
- Non-interest portions of a capital lease
- Project-related computer hardware and software
- Direct project materials
- One-time project labour
- Research and development
- Training
- Market expansion
- Approved project travel
- Specified legal/accounting costs
What it does not pay for · 9
- Ongoing production or operating costs
- Overhead
- Purchase of land or buildings
- Interest
- General working capital
- Meals and hospitality
- Business/project plan preparation
- Vehicles and off-site equipment
- Mergers and acquisitions
From application to money
- Speak with programme staffDiscuss project with staff before applying
- Submit Stage ISeptember 18, 2026Stage I due September 18, 2026
- Submit Stage IIOctober 26, 2026Stage II due October 26, 2026
- Competitive evaluationEvaluation, due diligence and risk assessment
- Sign legal agreementSign legal agreement before work starts
In the funder’s words · 5
- Speak with programme staff
- The ministry recommends discussing your project with FSIIP Business Development Branch staff before you apply.
- Submit Stage I
- Complete the TPON Stage I eligibility checklist and application.
- Submit Stage II
- Stage I successes provide the detailed application, business plan and supporting documents.
- Competitive evaluation
- Ontario evaluates the application and runs financial and technical due diligence and a project risk assessment.
- Sign legal agreement
- Work may not start until an acceptable legal agreement is signed.
Quoted lines are word for word from the source documents; lines marked ◦ are our reading of them.
Everything you need to secure FSIIP
Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.
- 9-document checklist with what each reviewer is actually checking
- Your Application Game Plan — the print-ready PDF the preview below describes
- 6-step application timeline with prep hours per step
- Insider tip from program officers on what separates winners
- 2-program stacking strategy to combine with compatible funding
- Success profile + evaluation criteria — exactly what lenders look for
Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 9
Eligible Expenses 11
Ineligible Expenses 11
Deadline Notes
Ineligible Organizations
Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
High RiskHow FSIIP Compares
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Frequently Asked Questions
Quick answers to the questions founders most often ask about FSIIP