Has Canada’s Start-up Visa Program reached a breaking point?

The SUV Program

The Start-up Visa (SUV) Program was initially introduced in 2013 as a direct pathway to permanent residency in Canada, designed to encourage investment in the Canadian economy while attracting talent and innovative entrepreneurs to Canada’s technology sector.

Eligibility for the SUV Program, required a qualifying startup along with an investment commitment (commitment certificate) from an Immigration, Refugees and Citizenship Canada (IRCC)-approved Designated Organisation. These organisations included approved venture capital (VC) funds willing to invest a minimum of CAD 200,000 into the startup, Angel Investor groups with a minimum CAD 75,000 investment, or acceptance into and completion of an approved incubator programme.

Successful applicants also had to meet minimum language requirements, clear background checks, and provide proof of funds to support both themselves and the business in Canada.

Downfall of the SUV Program

Launched with high expectations and early promise, the programme soon unravelled under the weight of unforeseen challenges. Wait times for application processing steadily increased as the programme’s popularity grew. Additionally, applicants faced challenges applying for initial work permits – an integral status document required for many SUV applicants to drive their businesses in Canada. IRCC’s lack of regulated support for these new and emerging businesses brought significant criticism from both the startup and immigration community.

Long wait times

Between 2013 and 2015, when the programme was initially introduced, 80% of SUV applications were processed within 185 days.

Since then, processing times have steadily increased, largely as a result of the programme’s popularity and growing IRCC backlogs. By the end of 2025, estimated processing times for permanent residence through the SUV Program had escalated dramatically, reaching projections of over 10 years.

The delay in approvals limited the ability of many startups to enter the Canadian market. While startups typically require flexibility to remain competitive, the SUV Program’s rigidity and lengthy processing times had the opposite effect, limiting startups from remaining competitive in Canadian markets.

Inconsistent work permit approval process

SUV applicants wishing to work on their startups in Canada were required to apply for a work permit, offered as part of the programme. The initial work permits were only offered for one year and many applicants received refusals on extensions for failing to provide proof of ongoing business activity in Canada. It was not until October 2024 that IRCC relaxed work permit requirements with the introduction of a new three-year open work permit. The new work permit allowed SUV applicants to work for any employer and addressed some of the initial criticisms, though many applicants still faced work permit refusals either of their initial work permit or renewal applications.

As a result, many startups could not leverage the work permit offerings to grow their businesses in Canada, putting their permanent residence applications at risk.

Organisational reliance

Another significant shortfall of the SUV Program was its required support from a designated organisation. The objective of the designated organisation was to verify the legitimacy and viability of entrepreneurs seeking permanent residency in Canada, and to provide support for entrepreneurs through investment and guidance. Unfortunately, the support letters became more transactional than transformative, resulting in less mentorship support for businesses seeking to enter the Canadian market than initially envisioned.

Programme paused

As of 01 January 2026, the Canadian government has paused the SUV Program. Only applicants who apply by 30 June 2026, and who received a valid 2025 commitment certificate (dated prior to 31 December 2025) can still apply.

Alternative permanent residence programmes:

1) Entrepreneur pilot programme

Expansive, “direct-to-permanent residence” pathways in Canada, including the SUV Program, have proven increasingly inefficient. Pursuant to the 2026–2028 Immigration Levels Plan, the permanent residence target was reduced by approximately 4% from the prior year, while temporary worker targets were reduced by 37%. These reductions reflect a clear policy shift toward a more sustainable and selective immigration framework, prioritising programme integrity and system capacity over broad-based intake.

A new Entrepreneur Pilot programme is planned for 2026, which will prioritise entrepreneurs already in Canada and focus on businesses that provide significant economic benefit to the Canadian economy. Full details of the programme have not yet been announced.

2) Provincial Nominee Program (PNP)

Provinces and territories may nominate individuals with specific skills, education, or work experience for permanent residence based on the province’s specific needs. Many PNPs include entrepreneurship programmes, though each province has its own specific eligibility and residence requirements. It is best to consult a lawyer to help guide you through specific PNPs.

3) Express entry

Express entry programmes, mainly the Federal Skilled Worker (FSW) and Canadian Experience Class (CEC) programmes, allow highly skilled applicants with as little as one year of employment experience in a skilled occupation to submit a profile for permanent residence in Canada. Though movement was slow for express entry applicants in 2025, IRCC has announced specific category-based selection targets for 2026, including the continued prioritisation of science, technology, engineering and math (STEM) occupations, along with healthcare workers, and senior managers with Canadian work experience.

4) Labour Market Impact Assessments (LMIAs)

The Labour Market Impact Assessment (LMIA) remains a key tool for Canadian employers seeking foreign talent, providing a pathway to hire skilled temporary foreign workers. Additionally, the Global Talent Stream , removes some of the traditional red-tape requirements and expedites processing for high-demand positions in tech and specialised in-demand fields, giving employers faster access to talent critical to innovation and growth.

While neither programme provides a direct pathway to permanent residence, the LMIA can lead to a 3-year work permit, giving employees valuable skilled work experience, while enabling Canadian employers to fill skills gaps, support business operations, and contribute to the broader economy.

5) LMIA-exempt work permits through the International Mobility Program

The International Mobility Program (IMP) sets out specific exemptions for applicants to obtain work permits without going through the rigors of the LMIA process. While these permits can offer greater flexibility than LMIA-based work permits, they are often tied to specific employers which may limit opportunities for start-up growth.

IRCC provides specific exemption categories, such as codes C10 and C11, which often align well with entrepreneurs whose proposed businesses are expected to provide significant economic, social, or cultural benefits to Canada. However, eligibility requirements under these categories are strict, and approval is often discretionary. Additionally, work under certain IMP categories may not directly lead to permanent residence in Canada and may be less suitable for individuals seeking long-term solutions.

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Benjamin Grubner C.S. is a lawyer in the Immigration Group at Devry Smith Frank LLP. Called to the Ontario Bar (2008) and New York State Bar (2022), he advises on Canadian and U.S. immigration matters including family sponsorship, permanent residence, and citizenship.

Jason Corry is an Articling Student at Devry Smith Frank LLP. He holds a B.S.M. from Brock University and a J.D. from Osgoode Hall Law School, where he participated in leadership roles and volunteer initiatives, including Pro Bono Students Canada and the Investor Protection Clinic.