Each fall FII publishes an investment strategy outlines investment priorities for the following fiscal year (April 1 to March 31). The strategy is based on consultation with forest companies, resource communities, academics and other stakeholders. Other detailed strategies such as the Product Development & Technical Research Strategy point to priorities for particular sectors or regions.

FII then issues a call for proposals based on funding guidelines that are clear and transparent and conform to all government standards. The market development program application guide is the document that further describes the application process.

Funded projects are announced around the start of the fiscal year (April 1). Recipients are required to set specific and achievable targets. They must report regularly on the progress of their projects and track their spending. FII audits projects on a regular basis to ensure they remain on track and within budget.

FII provides recipients with extensive resources including an online system for providing project updates and reports.

In many cases, FII funding is matched by federal funding through the Canada Wood Export Program or association funding. Typically FII funds between one-third and one-half of the cost of a project. Product development and technical research projects specific to B.C. may receive 100% funding.

Groups interested in applying for FII investments should note that FII does not provide loans, grants or subsidies. Funding is not meant to support an individual firm's activities, such as marketing or product development. Subsidies are generally considered to be any situation where funding provides a direct benefit to one company or group.