If you run a forestry business in Ontario, the Forest Sector Investment and Innovation Program (FSIIP) can help pay for large, important projects. The hard part is picking the right stream. Business projects and collaboration projects have different rules, partner needs, and funding limits. Choosing the wrong stream can stop your application before it starts.
This guide explains how the two streams compare, who should apply to each, and how the application process works. You’ll also find tips for success and answers to common questions.
The Forest Sector Investment and Innovation Program is run by Ontario’s Ministry of Natural Resources and Forestry. The goal is to help Ontario’s forest sector by making businesses stronger, bringing in new ideas, and opening more markets.
Both streams have some main rules:
The main differences are about who leads the project and how partners are involved.
Business projects are for one for-profit forestry company making a major investment.
Key requirements:
This stream is best for companies that want to upgrade their facilities, use new technology, or grow into new markets on their own.
Collaboration projects are built around partnerships that help the whole sector. Many applications are rejected because of problems with partners.
Key requirements:
Collaboration projects must help Ontario’s forest sector by using new technology, better processes, or new products.
If you’re not sure which stream fits your project, GrantHub’s eligibility matcher can help you compare programs by province and industry.
Both FSIIP streams use a similar review process.
Step 1: Initial project evaluation
Step 2: Full proposal review
Only projects that pass Stage 1 are asked to send in a full proposal.
Not meeting the $3 million minimum
Projects smaller than $3 million do not qualify, even if they are creative.
Weak or missing partners
Collaboration projects need at least three real partners. Letters of support are not enough—each partner’s role must be clear.
Choosing the wrong stream
Adding partners just to look collaborative does not work. Evaluators look for projects where partners share risks, work together, and help the whole sector.
Not proving financial need
You must show the project would not happen as planned without FSIIP support.
How much funding can an FSIIP collaboration project get?
Collaboration projects can get up to $3 million, covering no more than 30% of eligible project costs. The rest must come from partners or other sources.
Do colleges or universities count as partners?
Yes. Academic partners are allowed, as long as there is at least one Ontario-based, for-profit forestry or wood products company involved.
Is the Forest Sector Investment and Innovation Program competitive?
Yes. All applications go through a two-step competitive review, and funding is not guaranteed even if you meet the basic rules.
Are grant funds taxable?
Usually, government grants are taxable income. You should check with your accountant to see how this applies to your project.
Can more than one for-profit company join a collaboration project?
Yes. Collaboration projects can have several for-profit companies, along with research groups or academic partners, as long as there are at least three partners.
Deciding between a business project and a collaboration project depends on how your project is set up and who shares the work and rewards. GrantHub lists current forest sector and manufacturing grant programs across Canada, so you can check which ones fit your business before you start a full proposal.
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