Canada wants to lure more wealthy entrepreneurs – and their cash – and wants to know how best to attract them.
The government has opened the Immigrant Investor Program (IIP) to public consultation in an effort to entice more entrepreneurs to the country.
The IIP has three aims:
- Increasing the economic benefit that immigrant investment capital could bring to Canada
- Attracting experienced, international investors with the skills and resources needed to ensure they integrate into Canada’s economy
- Developing efficient and cost-effective ways of delivering an investment program.
“We can no longer be a passive player in the global competition for talent and investment. That is why we need to review our immigration programs to create dynamic opportunities that enable immigrants’ investments to directly benefit the Canadian economy,” said Citizenship, Immigration and Multiculturalism Minister Jason Kenney.
The IIP is part of a broader Economic Action Plan to target more active investment for Canadian growth companies.
“I am open to creative ideas and suggestions from the business community on how to maximize the economic benefits of such programs to Canada,” said Minister Kenney.
He explained the goal of the consultations is to work out how to target high value global investors and increase the economic benefit that immigrant investment capital brings to Canada.
The government paused new IIP applications on July 1, 2012, for a review of the program.
Canada intends to admit 5,500 to 6,000 newcomers under the Federal Business category in 2012, which includes investors.
The IIP started in 1986, and provided investment capital to private and provincial investment funds and business ventures with the goal of job creation.
The program offers permanent residency to individuals who meet specific business experience criteria, possess a net worth of at least CDN$1.6M, and are able to make an $800,000, five-year, zero-interest, guaranteed investment.
Investment capital raised through the program is allocated to participating provinces and territories (PTs), for the five year term – and at the end of the term, PTs must repay the borrowing to the investor in full.
Many PTs take a low-risk investment approach in bonds and cash deposits, with only a fraction invested in infrastructure investments, loans to small and medium sized business, and venture capital.
The program has raised almost CDN$4 billion from more than 9,500 investors since 1999.
Federal Immigrant Investors are one of three categories of federal business class immigrants, alongside entrepreneurs and the self-employed, which represent about 4% of economic class immigrants annually (2% of all immigrants).
CIC is also consulting Canadians on whether the government should use its new powers under the amended Immigration and Refugee Protection Act to create short-term programs that could have a far greater impact on Canada’s economy, for example by possibly favouring active use of investment capital to promote economic growth.
Click here for more information about the online consultations, which are open for input until September 4, 2012 – www.cic.gc.ca/english/department/consultations/immigrant-investment-program-2012/index.asp
Canada has topped several recent surveys as the best place to live for expats.
