Report finds small loans can boost migrants' lifetime earnings

A small loan can give anyone in financial stress a leg up, but how far would it go for a newcomer in Canada trying to make ends meet while struggling to get back to their professional field?

- NICHOLAS KEUNG

Dr. Binal Patel, a single mother, received a $10,000 loan from Windmill Microlending so she could take a dentistry course full time to get her Canadian licence. "I thought I would never make it," she said.

A new report sheds light on how such an investment can help not only the immigrants on the receiving end, but also Canada's tax coffers, aside from the injection of new blood into the labour market.

The study by PricewaterhouseCoopers examined the social and economic impacts of Windmill Microlending based on the national charity's client data. It estimated a borrower's lifetime income would increase by $364,000 with a corresponding rise in tax contributions of $188,000.

"I was very happy to see that," said Claudia Hepburn, CEO of Windmill, which was started in 2005 by the late Calgary psychologist Dr.

Maria Eriksen, who saw that many of the janitorial staff at her hospital were foreign-trained professionals.

"The taxes paid is one thing. It's the ability (for Canadians) to see a doctor or have a nurse care for you when you're ill that wouldn't have been there." The income is pretax, indexed to 2023.

Since its inception, Windmill through donations and a community bond has doled out $105 million in loans to 11,300 newcomers from 150 countries. Currently, it has 4,700 active clients and $45 million loaned in its book, and it's growing.