The Quebec Immigrant Investor Program (QIIP) made headlines in the Canadian immigration world when they stalled the program last year. This is a popular program that welcomes people from all over the world based on investments.
The Ministry of Immigration, Francization, and Integration (MIFI) announced that the program which was closed for application until July 1, 2020, will now remain closed till April 1, 2021.
What is the Quebec Immigrant Investor Program all about?
The Quebec Immigrant Investor Program (QIIP) is a program by the Quebec Government which allows immigration to individuals with more than $2 Million in net worth. You can quickly get permanent residency status in the country using the program.
In order to be eligible for the program, you need to invest at least $1.2 Million with the help of a financial intermediary. The Government approves these intermediaries, and all the programs are set with specific set guidelines.
Some of the reasons and the thought process behind the decisions
This type of program is not unique, and we have witnessed many such programs in the past. Various Governments have a similar kind of program in the world.
A similar program in Canada called the Federal Immigrant Investor Program (FIIP) was started and canceled a few years ago because of numerous issues with the program.
Some of the issues as stated by the critics of the program are –
- The program indicates a ‘buy citizenship’ outlook. It conveys a message that anyone can purchase Canadian citizenship, something the Government does not want.
- The motive of the Government is to invite people to live and stay in the Quebec region. Most of the investors use the program as an entry route to Canada, and after receiving their citizenship, they tend to change their base to Ontario or British Columbia. This is a significant cause of worry, and the Government is finding the solutions to the problem.
- There has been a history of misuse of the program. The risk of misusing the program by individuals always remains.
A number of supporters of the program pointed out that the program has the potential to contribute considerable amounts to the economy. There is a massive upside as the investors pour in a lot of money in the Quebec region, which results in the overall economic growth of the region.
Letter to the Federal Government by the IIAC
The Investment Industry Association of Canada wrote a letter to the Federal Government in early May requesting to reinstate the investor program for immigration to Canada. They have a valid argument, and that is about the situation of the economy due to the Coronavirus pandemic.
The coronavirus pandemic has a massive impact on the Canadian economy and a boost to the economy with the investor program can help everyone. This group of people represents the recognized intermediaries with the Canadian Government.
Understanding how the program works
The program has a pretty straightforward structure. The Government takes an interest-free loan from the investors and offers them permanent residency status in return. This money is then invested in interest generating financial instruments like bonds. The money is withheld with the Government for a period of 5 years, after which it is returned to the investor.
A small portion of this investment is also used to provide loans to small businesses in the Quebec region, which is one of the most significant beneficial factors of the program.
The recent change in the lending rates by the Bank of Canada
Another significant factor to consider about the program is the current situation of the economy. The sudden drop in the economy has resulted in the Bank of Canada dropping the interest rates. The coronavirus prevention measures were taken by the Government in March, and these included the change in the interest rates.
Another question before the Government before they give out a decision for the program is whether the economy will be significantly impacted by the program considering the low-interest rates. Low-interest rates are a reason for not enough takers of the loan because of the situation, so it must be taken into consideration whether more money in the system will actually help.
Understanding other programs and methods for Canadian Immigration
It is imperative to understand that the investor program is part of the business immigration program. There are numerous opportunities and programs to immigrate to Canada, and business immigration is one of them. Even if the program is not reinstated in April 2021, it does not mean that you cannot immigrate as a business owner or entrepreneur.
Investor Vs. Entrepreneur Immigration programs
Both the investor and Entrepreneur immigration programs are part of the business immigration program.
In the entrepreneur immigration program, the investors are required to continually run business in the Quebec region and maintain them for years to get citizenship. This program comes with numerous clauses and rules that define the program, and you can still apply for the program.
The Quebec Immigrant Investor Program is entirely different and requires the investor to give an interest-free loan to the Government. No business investment is included in this program, but you cannot apply for the program until April 21, 2021, around when the Government will give further guidelines about it.
There are numerous other programs set up by provinces in Canada and the Federal Government. All these programs invite entrepreneurs from different backgrounds and countries to set up businesses in Canada.
There are hundreds of aspects to business immigration programs, and we have successfully processed numerous applications for business immigration. The experts at our team understand your requirements and help you select the best programs and provinces to immigrate with this program. Stay tuned with us for more such informative news and updates from the Canadian Government. We continuously deal with hundreds of Immigration cases and remain up-to-date with the changes happening in the Immigration Industry. Also, feel free to reach us to get a free insightful outlook for your application. Our core team of experts has years of experience in applying and obtaining visas for thousands of customers.