Forest Sector Investment and Innovation Program — Business projects

Large-scale manufacturers and processors in Ontario’s forest sector facing pressure to modernize, innovate, or access new markets may find meaningful support through the Forest Sector Investment and Innovation Program — Business projects. Designed for companies planning major capital or innovation investments, this program helps offset the cost of transformative projects that strengthen productivity, competitiveness, and long-term resilience across the province’s forest economy.

Delivered by Ontario’s Ministry of Natural Resources and Forestry, the program focuses on significant business-led projects within the wood products and forest biomass value chain. It is particularly relevant for sawmills, pulp and paper operations, secondary wood manufacturers, and bio-economy businesses undertaking multi-million-dollar initiatives. Funding is structured primarily as a performance-based loan covering a portion of project costs, with part of that support potentially forgivable depending on results. In limited cases, additional non-repayable support may be considered. This approach allows established companies to pursue ambitious upgrades, new technologies, or market expansion while sharing risk with the province.

Because projects are assessed through a competitive, rounds-based process, successful applications typically demonstrate clear economic impact, sector-wide benefits, and a strong case for why government participation is needed to move the project forward. For Ontario forest-sector businesses considering a major investment, learning more about how this program works can help determine whether it fits into your growth and financing strategy.