Canada will start accepting applications for its new Immigrant Investor Venture Capital program from Jan. 28, Wednesday. The program offers permanent residency to international investors who can invest $2 million in Canada.
The applications will be received from Jan. 28 to Feb. 11 or until a maximum of 500 applications are received. “This pilot program is designed to attract immigrant investors who will significantly benefit the Canadian economy and better integrate into our society, which will contribute to our long-term prosperity and economic growth,” said Immigration Minister Chris Alexander in a written statement, reports CBC News.
The government has already announced that though it will accept up to 500 applications, permanent resident visas will be given only to a maximum of 60 applicants. The number has been restricted to 60, to evaluate whether the new pilot program is capable of achieving its goals and can work in the best interest of Canada’s economy, said a senior government official.
Selection Procedure
The new program mandates each investor to make a non-guaranteed investment of $2 million for approximately 15 years into a fund managed by BDC Capital, which is the investment arm of the Business Development Bank of Canada. The government, in turn, will use the fund “to invest in innovative Canadian start-ups with high growth potential.” Proceeds from the fund will be distributed to the investors periodically.
The new investor program is a repackaged version of Canada’s controversial Immigrant Investor Program, scrapped a year ago. In the he new program, the emphasis is on attracting fewer but richer immigrants.
Under the eligibility stipulations, the candidates have to prove proficiency in either English or French with their post-secondary education credentials. Applicants also have to obtain a due diligence report that demonstrates their net worth of at least $10 million from lawful, profit-making business activities, reports BIV News.
Garnering Experience
Industry Minister James Moore asserted that the pilot program is part of Canada’s efforts “to attract experienced business leaders to Canada while leveraging their business expertise and personal investments.”
In the scrapped immigrant investor program, applicants were required to have a minimum worth of $1.6 million to loan Canada $800,000 interest-free for a period of five years. However, a detailed study of the program revealed that the net gain to Canada was only $20,000 per applicant, because the provinces invested the immigrant loans in low-yield Canada bonds.
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