Forest Sector Investment and Innovation Program: Funding Available for Ontario Forestry Projects

The Forest Sector Investment and Innovation Program (FSIIP) provides funding for strategic investments that strengthen Ontario’s forest sector. The program is designed to support projects that improve productivity, enhance competitiveness, increase innovation, support new market access, and deliver broader benefits to Ontario’s forest economy.

With funding available through both Business Projects and Collaboration Projects, FSIIP can support eligible organizations undertaking major investments in wood manufacturing, forest biomass processing, pulp and paper, secondary wood manufacturing, bio-economy initiatives, and collaborative innovation projects.

Upcoming deadlines for Round 27 begin with the Stage I deadline on June 19, 2026, followed by the Stage II deadline on July 27, 2026.

Program Overview

FSIIP supports strategic projects that help Ontario’s forest sector become more productive, innovative, and competitive. The program is intended to support investments that create value for individual businesses while also strengthening the broader forest sector and regional economies across Ontario.

Eligible projects should demonstrate alignment with the program’s key objectives, including:

• Improving productivity and competitiveness
• Increasing innovation
• Creating greater market access for Ontario firms
• Improving the competitiveness of Ontario’s broader forest sector
• Strengthening regional economies
• Demonstrating a clear need for government financial support

Business Projects Stream

The Business Projects stream supports for-profit manufacturers and processors of wood and forest biomass undertaking projects with at least $3 million in eligible costs.

Eligible applicants may include:

• Sawmills
• Pulp and paper mills
• Secondary wood manufacturers
• Bio-economy projects

Funding under this stream is available through a performance-based loan of up to 30% of eligible project costs. Up to 50% of the loan may be forgivable, provided the applicant meets job, investment, and payroll targets.

During the repayment period, interest will be charged at Ontario’s cost of borrowing plus 3%. Stacking is permitted up to a maximum of 50% from other federal and municipal sources. Provincial stacking is not permitted.

In exceptional circumstances, grants of up to 15% of eligible project costs may also be considered.

Collaboration Projects Stream

The Collaboration Projects stream supports projects undertaken through partnerships across Ontario’s forest sector. Eligible collaborative projects must have at least $3 million in eligible costs.

Eligible collaborators may include:

• Forest sector for-profit businesses
• Not-for-profit research organizations
• Forest industry associations
• Academia

Funding under the Collaboration Projects stream is available as a grant of up to 30% of eligible project costs, to a maximum of $3 million.

Stacking is permitted up to a maximum of 75% from other federal, provincial, and municipal sources.

Application Process

FSIIP uses a two-stage application process.

Stage I: Project Overview
Applicants submit a project overview to determine whether the project meets program eligibility criteria and aligns with FSIIP’s objectives. Stage I applications can be submitted at any time, but projects submitted by the current Stage I deadline will be considered for Stage II evaluation.

Stage II: Competitive Evaluation
Projects that advance to Stage II are assessed through a competitive, rounds-based evaluation process. This stage includes financial and technical due diligence to determine whether the project should receive funding support.

Upcoming Deadlines

Round 27
• Stage I: June 19, 2026
• Stage II: July 27, 2026

Round 28
• Stage I: September 18, 2026
• Stage II: October 26, 2026

Why This Program Matters

Ontario’s forest sector plays a significant role in supporting manufacturing, natural resource development, rural employment, and regional economic growth. Through FSIIP, eligible organizations have an opportunity to pursue major capital and innovation projects that improve operational efficiency, expand market opportunities, and strengthen long-term competitiveness.

For businesses and project partners planning major investments, this program can provide meaningful financial support while helping reduce the cost and risk of strategic growth initiatives.

How GrantMatch Can Help

GrantMatch helps organizations identify, assess, and secure government funding opportunities that align with their business and project objectives. Our team can support eligible forest sector businesses and collaborative partners through the FSIIP process by assessing project fit, reviewing funding strategy, preparing application materials, and helping position the project competitively through both stages of evaluation.

With upcoming deadlines approaching, now is the time to determine whether your project may be eligible for support through the Forest Sector Investment and Innovation Program.