Company registered in Quebec with an establishment and active activity there for at least two years, regardless of incorporating statute
Services
FORET - Financement pour l'optimisation et la resilience des entreprises de transformation de bois d'oeuvre resineux
Quebec loan of up to $5M (up to 100% of eligible expenses) for strategic Quebec softwood lumber (bois d'oeuvre resineux) sawmills facing liquidity challenges, to carry out strategic investments that diversify production, commercialize new products and diversify markets. Term up to 5 years (60 months) with a capital repayment moratorium up to 5 years and a discharge clause reducing repayable capital by 15% of eligible capital expenditures up to $5M. Funded with a $60M envelope for 2026-2027 and administered by Investissement Quebec; program ends March 31, 2027.
Overview
Quebec loan of up to $5M (up to 100% of eligible expenses) for strategic Quebec softwood lumber (bois d'oeuvre resineux) sawmills facing liquidity challenges, to carry out strategic investments that diversify production, commercialize new products and diversify markets. Term up to 5 years (60 months) with a capital repayment moratorium up to 5 years and a discharge clause reducing repayable capital by 15% of eligible capital expenditures up to $5M. Funded with a $60M envelope for 2026-2027 and administered by Investissement Quebec; program ends March 31, 2027.
Key numbers
| Item | Value |
|---|---|
| Instrument | loan |
| Level | provincial |
| Region | QC |
| Administrator | Investissement Quebec (as mandatary of the Ministere de l'Economie, de l'Innovation et de l'Energie), with the Ministere des Ressources naturelles et des Forets (MRNF) qualifying strategic sawmills |
| Cost share | 100% |
| Max per project | $5,000,000 |
| Budget | $60,000,000 |
| Deadline | 2027-03-31 (program end; aid paid in at most two installments no later than this date) |
| Intake status | Open (continuous); program ends 2027-03-31 |
| Non-US bias | Funds diversification of production and markets away from US softwood-lumber dependence; triggered by adverse market conditions (US lumber tariffs) |
Eligibility
Operates one or more softwood lumber sawmills and carried out structuring investments there in the last 10 years
Revenue of at least $5M in the last two years
Qualified as strategic by the Ministere des Ressources naturelles et des Forets (MRNF) based on
plant condition and operational performance, competitiveness (procurement and processing costs), strategic importance in the value chain, sensitivity of the MRC's forest industry, and wood supply capacity
Sector
Quebec softwood lumber sawmills, and companies of a group operating a strategic sawmill in Quebec
What it covers
Working capital needs to maintain operations, based on justified and reasonable expenses
Loan up to $5M (per group of companies), up to 100% of eligible expenses
Discharge clause (capital reduction)
15% of eligible capital expenditures, up to $5M, subject to an investment project that diversifies production and, if possible, markets
Business plan to be filed within 12 months of the first installment; project completion to be confirmed within 24 months and finished by the 54th month of the loan
Market and diversification rules
Loan up to $5M (the $5M ceiling applies per group of companies); term max 5 years (60 months); capital repayment moratorium up to 5 years
Aid paid in at most two installments, no later than 2027-03-31
A guarantee is required; expenses must be paid 6 months before the end of the project and validated by an external auditor
Combined discharge ceiling between FORET and ESSOR Volet 5 is $10M
How to apply
Contact Sonya Cliche, Senior Director, Specialized Programs and Financing, by email or at 418 222-5774
Provide financial statements of the last two fiscal years, a 24-month cash-flow budget and financing plan, details of federal forest-sector support obtained or anticipated, a description of structuring investments over the last 10 years, francisation proof if applicable, and any other MEIE/MRNF document
Requests judged admissible are analyzed and decided by Investissement Quebec teams as mandatary of the government
Stacking notes
The financing cannot be combined with other aid for the same expenses
Combined discharge (forgivable) ceiling between FORET and ESSOR Volet 5 is $10M
If discharge conditions are not met, the loan must be repaid in full
Notes
Created July 7, 2026 with a $60M envelope for 2026-2027 to strengthen the resilience of Quebec's softwood lumber industry amid US tariffs (45.16%) and US construction-market slowdown
Announced together with the creation of ESSOR Volet 5 (sawmill investment productivity, $60M over six years)
Offers liquidity for production-diversification or value-added-product commercialization projects
Relevant services
The services below are grant-eligible: CanExport and EDC reimburse up to 50% for incorporated Canadian exporters.
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