Immigration Loans Program cap raised

Summary#

This final regulation, Regulations Amending the Immigration and Refugee Protection Regulations (Immigration Loans Program), raises the limit on how much the government can lend under the Immigration Loans Program from $126.6 million to $250,000,000. The change took effect on registration (June 21, 2022) so the program can keep issuing loans to help newcomers, mainly resettled refugees, pay travel and early settlement costs.

What it does#

• Replaces the rule that set the program’s lending ceiling so the total advance available from the Consolidated Revenue Fund is now $250,000,000 instead of $126.6 million.
• Keeps the Immigration Loans Program’s existing loan terms and eligibility; it does not change interest, repayment periods, or who can apply.
• Comes into force on the day it was registered (June 21, 2022).

Who's affected#

• Primarily resettled refugees — the source says about 99% of users of the Immigration Loans Program are resettled refugees.
• Private sponsors and service organizations that help refugees, because they work with newcomers who often use these loans.
• Immigration, Refugees and Citizenship Canada (IRCC), which issues and administers the loans and will handle a larger volume.
• Data from the source that give context: average loan roughly $3,293 per family unit, loans are capped at $15,000 per family for transportation, and outstanding loans were about $80.1 million as of March 31, 2022. The government also committed to resettle at least 40,000 Afghan nationals, which increased demand for these loans.

Why it matters#

• It prevents the program from hitting its previous cap and having to stop issuing loans. Without this change, IRCC could have paused new loans until previous loans were repaid, which could delay or block some refugees from travelling to and settling in Canada.
• It helps Canada meet higher refugee resettlement targets by keeping an affordable, interest-free loan option available for people who lack other financing.
• The government estimates the change will cost about $6.7 million in present value over 10 years, including an expected $3.6 million in defaults, plus modest administrative costs.
• The amendment was fast-tracked because of urgent resettlement needs (notably for Afghan nationals); no external consultations were carried out for timing reasons.