The current Immigrant Investor Venture Capital Pilot Program (“IIVC”) is much like the former Immigrant Investor Program.
The Immigrant Investor Program (“IIP”) was established in 1986 to allow foreign nationals the ability to gain permanent residence status by making a substantial investment into the Canadian economy. The investment was government-guaranteed and repaid in full without interest, after a 5 year term. Once described as the most popular program across the globe, the IIP went through a few changes before it was ultimately terminated in July 2012, as illustrated in the chart below.
|Have a net worth of at least CAD$500,000.00||Have a net worth of at least CAD$800,000.00||Have a net worth of at least CAD$1.6 Million|
|Enter into an agreement to invest CAD$250,000.00||Enter into an agreement to invest CAD$400,000.00||Enter into an agreement to invest CAD$800,000.00|
|Have business experience||Have business experience (at least 2 years)||Have business experience (at least 2 years)|
|Be proficient in English or French||Be proficient in English or French||Be proficient in English or French|
During 1999 to 2012, the program raised almost CAD$4 Billion from more than 9,500 investors.
The Current Immigrant Investor Venture Capital Program
Although the IIVC’s objective is much like the former Immigrant Investor Program there are some differences. To qualify foreign nationals will need to meet the following requirements:
- Be proficient in English or French and complete a designated language test;
- Have post-secondary education and obtain an Educational Credential Assessment from an authorized body;
- Have proven business experience;
- Have a net worth of at least CAD$10 Million (which must have been acquired through lawful private business or investment activities); and
- Be willing and able to invest CAD$2 Million.
This investment of CAD$2 Million is a non-guaranteed investment for a 15-year term; which will be used to fund innovative Canadian start-ups with forecasted potential of high growth. The fund is expected to have the same characteristics of a typical venture capital investment. The proceeds of the investment may be requested to be paid out over time or at the end of the term.
On January 2015, CIC released a Notice that they would open the pilot program for applications from January 28 to February 11, 2015, or until a maximum of 500 applications were received. Not much is known about the results of those foreign nationals who applied.
On May 23, 2015, CIC released a Notice that, from May 25, 2015 to December 30, 2015, they will accept a total of 120 more applications on a first come first serve basis, 60 applications to be processed and 60 to be put on a wait list.
It is anticipated that the spots will fill up quickly; any foreign national that is interested and believes that they are eligible under the Immigrant Investor Venture Capital Class should apply as soon as possible.
It is never advised that a foreign investor complete this process on their own, immigration applications can be lengthy and complicated.
Dale & Lessmann LLP invites you to contact our experienced Immigration Practice Group for assistance in applying for Canadian permanent residence as an investor.