Forest Sector Investment and Innovation Program — Business projects
Boost your wood manufacturing capacity with up to 30% in performance-based loans, where half may be forgiven. This Ontario program requires projects of at least $3 million in eligible costs and approval before you spend. Verified against the official source on July 2, 2026; applications are open.
How we verify funding records →
“You can receive funding support of up to 30% of eligible costs in the form of a performance-based loan (of which, up to 50% may be forgivable).”
Before you spend a dollar
Approval must come before you spend; money spent before the funding agreement is signed usually does not count.
At a glance
Subject to program rules, available funding, and approval. Confirm current details with the official program administrator.
Not sure if you qualify?
Get a free, 2-minute read on whether this program fits your business. No obligation.
Check your fit →Is this for you?
- You are an Ontario for-profit manufacturer or processor of wood products or forest biomass.
- Your project has at least $3 million in eligible costs and focuses on productivity, innovation, or market access.
- You are part of a collaboration of at least three partners, including at least one Ontario forestry for-profit.
Probably not the right fit if
- You are in harvesting or resource extraction, which is explicitly excluded.
- Your project costs are under $3 million.
- You are a retail store, restaurant, salon, clinic, or contractor not involved in wood or forest biomass manufacturing.
How much you'd realistically get
Up to 30% of eligible costs as a performance-based loan (up to half may be forgivable); grants of up to 15% may be considered in exceptional cases. Note the entry bar: projects need at least $3 million in eligible costs.
What may be supported
- Strategic investments that improve productivity and innovation.
- Investments that enhance competitiveness.
- Investments that support new market access.
- Investments that provide benefits to Ontario’s broader forest sector.
- Investments that strengthen regional economies.
- Innovation in technology, process, and/or products (for collaboration projects).
What's excluded or restricted
- Harvesting and resource extraction projects are not eligible for funding.
How applying works
Effort: involvedYou must register with TPON, pass a Stage I eligibility check, and submit a full Stage II business plan with supplemental documents by strict round deadlines.
- 01Register with Transfer Payments Ontario (TPON).
- 02Login to TPON and complete the Stage I Eligibility Checklist and Application Form.
- 03Wait for Stage I approval.
- 04Submit a fully completed Stage II Business Plan and all required supplemental documents by the Stage II deadline.
- 05Secure the funding agreement before spending any money.
Who to ask: Phone: 1-844-573-9017; Email: FSIIP@ontario.ca
Documents commonly required
- Stage I Eligibility Checklist
- Stage I Application Form
- Stage II Business Plan
- Supplemental documents (specifics not stated, confirm on the official page)
How BBN Labs helps
- BBN builds automation and AI workflows that boost productivity and innovation, putting the repayable financing to work on smarter operations.
- BBN designs B2B digital systems and export-ready tools to enhance competitiveness and open new market access for your forest sector business.
- BBN guides you through the application and deadlines so you don't lose the funding.
What to know before you count on it
- This is a matching grant structure: you typically pay the full cost first, then claim your share back, so you need the cash flow up front; confirm exact payment mechanics on the official page.
- Total government support for business projects cannot exceed 50% of eligible costs, and stacking with other provincial funding is not allowed.
- The program uses competitive rounds; if the budget is committed, you wait for the next round, so apply early.
- The reimbursed grant portion is generally taxable income; ask your accountant.
What are your odds?
Usually not a contest if you qualify, apply before the budget runs out, and follow the rules; the real risks are starting too early, an incomplete application, or the budget being committed.
Frequently asked questions
Do I have to pay the full cost before I get the money?
Typically, yes. Matching grants usually reimburse you after you spend. Confirm the exact payment mechanics (upfront vs. reimbursement) on the official page.
Can I combine this with other Ontario grants?
No. Stacking with other provincial funding programs is not allowed for business projects. Total government support cannot exceed 50% of eligible costs.
Is the grant money taxable?
The reimbursed grant portion is generally taxable income. Ask your accountant.
What if my project is under $3 million?
You do not qualify. Projects must have at least $3 million in eligible costs.
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What you can combine it with
Stacking with other provincial funding programs is not allowed for business projects; total government support cannot exceed 50% of eligible costs for business projects or 75% for collaboration projects.
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Worth reading before you apply
Get alerted when this changes
Programs open and close, budgets run out, rules change. We send one short email when something changes that matters for this program.
Record last updated July 3, 2026; last verified July 2, 2026 against the official source. Source: official program page.