400k or 125k ? for quebec investors

[freak]

i have seen on the quebec govt website the info about INVESTORS subclass under which u can loan 400k to them for 5 years without interests. but it seems u guys also mentioned about the other opiton of simply giving them 125k, instead of loaning them money. is this true? if yes, where can i verify this? thanks.

also, anybody knows how long the quebec govt processes the application before it goes to the fed?

 

[Leon]

I haven't looked into the Quebec program but the federal program has an investor class where you loan the government 400,000 for 5 years without interest and I have heard that some financial institutions may make an agreement to take that over for you if you pay them a non-refundable 120,000 or 125,000. They will then put up the rest of the money for you for the government and they will take the whole amount in 5 years. Basically that means that the bank takes your money as a payment for the interest they would have received if they had invested the 400,000 elsewhere for 5 years.

You should contact some Canadian banks and ask them if they have any such programs. There are other criteria you have to fill too though for business experience, net worth etc.

 

[helios]

I haven't looked into the Quebec program but the federal program has an investor class where you loan the government 400,000 for 5 years without interest and I have heard that some financial institutions may make an agreement to take that over for you if you pay them a non-refundable 120,000 or 125,000. They will then put up the rest of the money for you for the government and they will take the whole amount in 5 years. Basically that means that the bank takes your money as a payment for the interest they would have received if they had invested the 400,000 elsewhere for 5 years.

You should contact some Canadian banks and ask them if they have any such programs. There are other criteria you have to fill too though for business experience, net worth etc.

The option of paying 125000 directly is available for the Quebec investor program as well. It is usually financed by a bank or an investment firm. Typically the Quebec investor program takes 2-3 years to process from your application date.