Assistance Loan

The RAP Service Provider Organization (SPO) supporting GAR or JAS clients is expected to inform clients about the Assistance Loan at the time of their RAP income support (RAP-IS) intake, soon after their arrival in Canada, by providing the Assistance Loan Information Sheet (PDF, 142 KB). If clients wish to access this loan, they must inform their RAP SPO.

If a loan is required to cover a client’s first and last month deposit (mainly for clients resettled to Ontario), the SRO regional office will include a pre-filled Assistance Loan Agreement in the RAP-IS intake package with a pre-determined amount required for first and last month’s rent deposits in the client’s community.

For all other GAR and JAS clients, if a loan is requested, the RAP SPO must complete the Loan Recipient, Co-signer (if applicable), and Loan Amount sections of the Assistance Loan Agreement (IMM 5355), using the “Calculating the loan amount” section below to help determine the loan amount required for the client. The IMM 5355 and supporting documentation to justify the loan amount requested are sent to the regional RAP centralized inbox.  

Other loan recipients who may request access to the Assistance Loan include those selected under:

• complementary pathways program (such as the Economic Mobility Pathways Pilot [EMPP])
  • EMPP clients (or EMPP partners on behalf of EMPP clients) send a request to access an Assistance Loan to Humanitarian and Identity Operations Resettlement Operations Division (HIOB-ROD)
  • Email should include:
    • Subject line: EMPP request for Assistance Loan
    • Body of email:
      • IRCC application number
      • Number of persons in the application
      • PA email address
      • PA phone number
      • Name of PA’s employer in Canada (if applicable)
    • Email request to be forwarded by HIOB-ROD to the Settlement and Resettlement Operations Resettlement Coordination (SRO-RC) Pathways Team, who will action the request.
  • temporary public policy for permanent residence (where a decision is made to offer loans): per instructions in their application package

The Assistance Loan may be used to cover basic needs during the initial establishment period in Canada, when evidence of this need is demonstrated.

• Refundable costs, such as:
  • security deposit for utilities such as electricity, water, gas or phone service
  • security or damage deposit on a rental unit
  • advance on first and last month’s rent
  • advance on the Canada Child Benefit (CCB) and applicable provincial or territorial child benefit
• Other costs:
  • GARs:
    • Other expenses directly linked to their initial establishment that are not covered by RAP-IS
  • Other eligible clients – one-time payment:
    • Costs covering a maximum period of 1 month for accommodation, food, and incidentals. This can also include start-up items such as clothing and household items

Labour market access needs are identified as financial barriers to employment, which, if totally or partially removed, would allow a person to accept employment.

The Assistance Loan may be used to cover the cost of

• items needed for a confirmed offer of employment: for example, tools, hard hat, safety boots, etc.
• taking an examination for a licence to practise a trade or profession when employment has been offered pending the successful outcome of the examination
• short-term child care: for example, when either both parents or a single parent has a confirmed offer of employment and assistance is required to pay for child care for up to 1 month

Security deposit on utilities

The utility bill(s), the utility provider’s website or an estimate provided by the RAP SPO can be used to justify the need for a given amount. The designated officer should include a detailed breakdown of costs in the Assistance Loan Agreement.

Advance on the CCB (and applicable provincial or territorial child benefit)

The officer may use the Canada Revenue Agency (CRA) Child and family benefits calculator to obtain the monthly estimate a family is expected to receive.

For all other types of basic needs loans, , designated officers may use as a guide the detailed breakdown of start-up and monthly costs that resettlement clients are typically eligible for using the Refugee Sponsorship Training Program (RSTP) Minimum Financial Support Calculator. Officers should include a brief rationale for the loan amount in the remarks field of the Assistance Loan Agreement. They should also save a screen shot of the RSTP calculator results, and save this as a supporting document along with the fully signed loan agreement (see Documenting the loan agreement).

To issue a loan to address labour market needs, the designated officer can estimate the amounts needed by doing an online search for

• current average market prices for items required by the applicant for employment (such as tools, hard hat, safety boots)
• the cost of the examination for a licence to practise a trade or profession that the applicant is planning to take

For short-term child care, the officer should find out the loan recipient’s potential child care arrangements and, if possible, ask them to submit the child care provider’s estimate for this service for a period of up to 1 month.

All loan recipients confirm their need for the loan by signing the Loan Recipient Declaration section of the Assistance Loan Agreement (IMM 5355). A separate Assessment of need for a loan not required for GAR, JAS and other loan recipients with a protection need.

Assessment of need for a loan required:

When assessing other loan recipients’ need for a loan, the designated officer should consider that funds under the ILP are limited and that the ILP is designed to be a lender of last resort. As such, the Assistance Loan should only be issued to these applicants if 

• the immigration program under which they are applying does not require proof of sufficient funds and/or secured employment in Canada
• they provide proof they were denied access to a loan from a traditional lending institution, such as a bank

Assessment of ability to repay not required.

Assessment of ability to repay required:

After assessing that the loan applicant needs a loan, the designated officer must assess their ability to repay it. The designated officer should consider that the repayment terms for immigration loans have been designed to reduce the financial burden on loan recipients:

• repayments on the Assistance Loan begin 12 months after the loan is issued
• monthly repayment amounts are minimized, with loan repayment periods of 3 to 8 years based on the total ILP loan amount
• ILP loans are interest-free

The following may also be considered:

1. Financial support: Financial support received from IRCC and/or from an anchor relative in Canada
2. Employment
   • secured employment in Canada
   • intention or ability to work in Canada
   • employment history, educational background and/or transferable skills expected to help secure employment within 1 to 2 years
   • knowledge of English or French
   • employment/employability of spouse
3. Possession of assets: Stocks and bonds, real estate, savings, a registered retirement savings plan or other securities (in more than a nominal quantity) that could be liquidated or used as collateral to obtain a loan from a mainstream financial institution

   Note: The loan recipient may need an ILP loan even though they have savings. In this case, the demonstrated ability to save may be interpreted as a potential ability to repay the loan.

4. Loan recipients with high needs or requiring support in Canada: Loan recipients may face challenges in repaying their loan if multiple compounding factors apply, such those listed in the instructions on RAP contributions.
5. Beneficiaries:
   • total number of beneficiaries (excluding loan recipient)
   • number of children who are eligible for the Canada Child Benefit (CCB) (and applicable provincial or territorial child benefit)