Canada's Immigration Minister, Chris Alexander, has announced a new Immigrant Investor program named immigration investor venture capital pilot to include a longer term loan along with doubling the investment for in exchange for permanent residency.
British Columbia has been offering Immigrant Investor program which is intended to provide Permanent Resident Status in Canada in exchange for a loan amount of $800,000 for a 5 years free of interest.
The major difference between the original one and the new one is that the original program is risk free lending situation whereas the new program involves risk venture capitalist investments, which is mainly focused on start –up business. The funds are expected to be privately managed and directed.
This program was initiated in 1986, while during that period loan amount was $150,000 for a period of three years. This amount has increased to $400,000 by 2010. The program proved to be controversial as it was essential to buy a permanent residency in Canada. The immigrants of investor class have paid fewer amounts in taxes when compared to other economic immigrants and only few among them probably spoke English or French and settled in Canada.
The main reason to remove the old program is that the people have been buying property without meeting the requirements of staying in Canada and speaking essential languages.
The second major reason is that there has been a backlog list of the immigrants who have filed their applications for Immigrant Investor Program.