Updated June 2026 · Verified against Government of Ontario — Ministry of Natural Resources and Forestry guidelines
Milestone-Based Est. 2021
Forgivable Loan Provincial Active

Forest Sector Investment and Innovation Program (FSIIP) — Business Projects

Government of Ontario — Ministry of Natural Resources and Forestry
Loan Range
Up to 30% of eligible costs as a performance-based loan (up to...
Ongoing — four rounds annually (next Stage I: varies)
Visit Official Program →
Difficulty
Hard
Payment
Milestone-Based
Trend
Stable
First-Timers
—
Financing share
30%
Forest Sector Investment and Innovation Program (FSIIP) — Business Projects provides Up to 30% of eligible costs as a performance-based loan (up to 50% forgivable); grants up to 15% in exceptional cases. 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. The program covers up to 30% of eligible costs. Applications are accepted on an ongoing basis.

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Eligibility & Details

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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
Provinces
Industries
Natural Resources Manufacturing Clean Technology
Business Stage
Growth Established Expansion

Quick Assessment

Difficulty
Hard
Competition
High
First-Timer
Not rated

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

Competition
High
Deadline
Ongoing
Approval
Good
Accessibility
2/5

Difficult — significant preparation needed

Competition
4/5

High competition — many applicants

Difficulty
5/5

Very complex — extensive preparation required

Approval Rate
Processing Time
Budget Trend
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How to qualify

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

The forgivable portion (up to 50% of the loan) is tied to meeting performance commitments — job creation, payroll targets, and investment amounts.

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Success Profile

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Evaluation Criteria

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Premium The pitfalls, the checklist and the reviewer notes are in the Playbook below. See what it includes ↓

How the Government of Ontario judges your application

What the reviewer scores, what gets applications rejected, and what to write.

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Written answers2no length limits stated
Judged on5 criteria
Can reject you5 rules

Distilled from 3 source documents, condensed into one brief. Sources as of 2026-09-07.

3 sources

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.”

1 more, in their words

The form2 prompts shown

Stage I screening1 section
  1. 1Stage I — preliminary assessment
Stage II evaluation1 section
  1. 2Stage II — project evaluation

the Government of Ontario states no length limits for these answers.

Judged against4 questions · 5 criteria

  1. 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. 2

    Will your own Ontario operations gain?

    What to show, and the funder’s 1 criterion behind it in Premium

  3. 3

    Will it survive financial and technical due diligence?

    What to show, and the funder’s 2 criteria behind it in Premium

  4. 4

    Do you meet the eligibility gates?

    What to show them in Premium

Where applicants failin the Government of Ontario’s words

“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

$39 / month$299 / year save 36%Every program · Application workspace · 30-day money-backOr unlock this programme’s playbook alone · $19

Do you pass?5 checks

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.

2 more checks

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

  1. Speak with programme staffDiscuss project with staff before applying
  2. Submit Stage ISeptember 18, 2026Stage I due September 18, 2026
  3. Submit Stage IIOctober 26, 2026Stage II due October 26, 2026
  4. Competitive evaluationEvaluation, due diligence and risk assessment
  5. 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.

What's in this Playbook

Everything you need to secure FSIIP

Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.

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Application Playbook

Step-by-step process, required documents, and expenses

Premium 6 steps 9 docs

Application Steps

1 Confirm eligibility Verify your business is a for-profit Ontario forest sector manufacturer and project costs will exceed $3M. Contact [email protected] for informal pre-screening.

Required Documents 9

✓ Completed Stage I eligibility checklist and application form (via Transfer Payments Ontario)
✓ Project overview and scope description

Eligible Expenses 11

Ineligible Expenses 11

Deadline Notes

Ineligible Organizations

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Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Compatible Programs

Combined Funding Potential See your total funding potential

Clawback Risk

High Risk

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How FSIIP Compares

Side-by-side with similar programs

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Program Amount Difficulty Payment Deadline
Forest Sector Investment and Innovati... Up to 30% of eligible costs as a... Hard Milestone-Based Ongoing — four rounds...
NRC IRAP Clean Technology Program $100,000–$500,000 Hard Mixed (Advance + Reimb.) Ongoing
CanExport SMEs Up to $50,000 Moderate Mixed (Advance + Reimb.) Between intakes — the...
Strategic Response Fund (formerly Str... Minimum $10 million contribution Hard Mixed (Advance + Reimb.) Ongoing — continuous...
Ocean Supercluster Up to $5 million Hard Reimbursement Continuous intake (Core...

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Frequently Asked Questions

Quick answers to the questions founders most often ask about FSIIP

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Can I apply if I'm a sole proprietor?
No — must be a for-profit business registered in Ontario. Sole proprietors must incorporate to qualify. See eligibility: 'registered to conduct business in Ontario'.
What's the realistic grant size for a $3M project?
Typical award: $300K–$1.5M forgivable portion (up to 50% of $3M–$5M project cost). Maximum $3M total project cost. Non-forgivable portion is 50%.
When are the next application deadlines?
Four rounds yearly. Stage I deadlines rotate every ~3 months. Check Ontario Transfer Payments portal for current dates. Next Stage I: varies (not fixed).
Why do applications fail?
Project costs below $3M. Harvesting/hauling operations. Missing financial capacity proof. Failing to meet job creation/payroll targets. Costs incurred before approval.
Can I stack with IRAP or CanExport?
Yes — IRAP for R&D, CanExport for market expansion. Combined government funding must stay at or below 50% of total eligible costs.

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