The Canadian Finance Minister has abruptly announced the elimination Canada’s popular Immigrant Investor Visa Program. An estimated 45,000 Chinese investors will have their applications terminated and funds returned. Many of these investors will now be looking at our EB-5 program.

The Canadian program was substantially different than the EB-5 system. Canada allowed foreign nationals to acquire permanent residence by making an interest-free loan for five years of US$726,720 to any of Canada’s five provinces. There was no risk and no job creation required for the Canadian program, which (except Quebec) had been frozen since 2012 while authorities tried to reduce the backlog.

The Canadian program was criticized as some 80% of the Chinese millionaire investors live in Vancouver and have driven up real estate prices. There are reports of a lack of affordable property for the average person in Vancouver where the median income is $64,000.

A comparative look finds the Canadian program had six times the number of Chinese applicants than the combined total of all nationalities applying under the immigration investor programs in the US, Britain and Australia.

The end of the Canadian program, with the return of capital to 45,000 investors, provides an unexpected opportunity for US regional centers.