Forest Sector Investment and Innovation Program — Business Projects ### 📋 Eligible Entities - Wood manufacturers and processors (primary eligibility) - Forest biomass processors (primary eligibility) - Canadian-based businesses operating in the forest sector - Small to medium-sized enterprises (SMEs) in wood/biomass processing - Businesses must demonstrate active operations in manufacturing or processing of wood or forest biomass products ### 💰 Funding Details - Loan Structure: Performance-based loan (not a grant) - Coverage: Up to 30% of eligible project costs - Repayability: Loans must be repaid according to agreed terms - Matching Requirement: Applicant must fund remaining 70% of eligible costs through own capital, other financing, or co-investment - Loan Terms: Performance-based conditions tied to productivity and innovation outcomes - Maximum Funding: Determined on a per-project basis (specific caps not detailed in program description) ### 🛠️ Approved Expenses - Productivity improvement initiatives (equipment, systems, processes) - Innovation projects in wood or biomass processing - Technology adoption and modernization - Equipment and machinery for manufacturing/processing operations - Process improvements that enhance operational efficiency - R&D activities related to product or process innovation ### ⚠️ Conditions & Milestones - Performance-Based Conditions: Loan disbursement and terms tied to measurable productivity or innovation outcomes - Cost Eligibility: Only eligible expenses covered; applicant responsible for all ineligible costs - Co-Investment Requirement: Applicant must contribute minimum 70% of project costs - Project Approval: All projects must be approved before funding release - Reporting & Compliance: Ongoing performance monitoring and reporting likely required to track innovation/productivity metrics - Repayment Obligation: Standard loan repayment schedule must be met regardless of project outcomes