Immigration Loans Program cap raised $400 million

Summary#

The final rule titled Regulations Amending the Immigration and Refugee Protection Regulations (Immigration Loans Program): SOR/2024-127 raises the legal cap on how much the government can lend under the program from $300 million to $400 million. The change came into force on registration (June 10, 2024) so the program can keep issuing loans for travel and initial settlement.

What it does#

• Replaces the rules that set the program’s maximum loan advances so the ceiling is now $400 million under the Immigration and Refugee Protection Regulations for the Immigration Loans Program.
• Comes into force on the day of registration (June 10, 2024).
• Does not change who is eligible or the loan terms (for example, loans remain interest-free and repayment starts one year after arrival). It only raises the dollar limit available for lending.

Who's affected#

• People applying for or receiving help from the Immigration Loans Program — especially resettled refugees, who have historically made up about 98% of program users.
• Immigration, Refugees and Citizenship Canada (IRCC), which manages and administers the loans.
• The Government of Canada’s finances and, indirectly, taxpayers, because raising the cap increases how much may be outstanding at one time and the government’s exposure to loan defaults.
• Private sponsors and settlement service providers may be indirectly affected if the availability of loans changes newcomers’ financial situations.

Why it matters#

• It keeps the program working when demand is rising. Without the increase, the fund could hit its old $300 million limit and fewer people would be able to get loans for travel or initial settlement.
• That could slow refugee resettlement and make it harder for vulnerable people to reach Canada or get basic settlement help.
• There is a government cost to the change: an estimated total present-value cost of about $8,071,665 over the next period of analysis, including an estimated default (unrecoverable loans) risk of about $1,879,772 (present value).
• Because this is a final amendment (registered as SOR/2024-127), it is already in force; it is not a proposal or consultation document.