Immigration Loans Ceiling Increased

Summary#

These final regulations raise the maximum amount the government can advance for the Immigration Loans Program from the Consolidated Revenue Fund to $300,000,000. The change came into force on December 19, 2023 and is meant to keep the loans available while the existing ceiling would otherwise be reached by February 2024.

What it does#

• Replaces the rule in the Immigration and Refugee Protection Regulations that set the program’s loan ceiling so the new maximum is $300,000,000.
• Keeps all other program rules and loan terms the same.
• Lets the government continue issuing interest-free transportation and initial-settlement loans to eligible newcomers and refugees while repayments replenish the fund.
• The amendment is already in effect as of the registration date (December 19, 2023).

Who's affected#

• Resettled refugees and other newcomers arriving under humanitarian programs. Historically, 98% of the program’s users have been resettled refugees.
• Immigration, Refugees and Citizenship Canada (IRCC), which issues the loans and manages repayments.
• The federal government’s finances, because the change increases the potential amount advanced from the Consolidated Revenue Fund.
• The amendment does not target businesses; the government says Canadian small businesses are not affected.

Why it matters#

• It keeps a key, low-cost option available for people who often cannot afford commercial loans to pay for travel and early settlement costs. That can make the difference between safely arriving in Canada or not being able to come at all.
• The government estimates the change will cost a present value of $3,083,605, including one-time setup ($1,000), ongoing administration ($858,771), and expected defaults ($2,223,835). Historical data suggest about 4% of loans may not be repaid.
• The amendment is administrative rather than a change to who is eligible or to loan terms. The Canada Gazette notice says no external consultation was done because of time sensitivity.