Canada’s Startup Visa Program (SUV) has implemented a cap on the annual processing of permanent residence (PR) applications, limiting it to a maximum of 10 startups per designated organization.
This significant change came into effect on April 30, as announced by Immigration, Refugees, and Citizenship Canada (IRCC).
The aim is to reduce backlogs and expedite processing but may introduce stringent restrictions that could potentially hinder the aspirations of prospective applicants.
Since its inception in 2013, the SUV program has assisted nearly 900 entrepreneurs in becoming permanent residents and starting over 300 new businesses. Interestingly, the United States lacks a similar program that allows immigrant entrepreneurs to become citizens directly.
Key changes to the Startup Visa Program:
Experts caution that these modifications could significantly reduce opportunities, with projections suggesting fewer than 1,000 applications through the SUV this year, indicating a substantial reduction in program capacity.
The IRCC has also announced that new applications will not be accepted for the Self-Employed Persons Program starting April 30, 2024. This program caters to individuals with special skills in culture who contribute to Canada’s cultural scene. The temporary halt aims to address a significant backlog, characterized by processing durations exceeding four years. Throughout this hiatus, the IRCC will assess the program’s operations to ensure fairness.
These adjustments reflect Canada’s evolving approach to admitting immigrant entrepreneurs. While they may expedite processes, they pose increased challenges for immigrant entrepreneurs seeking permanent residency, necessitating heightened support from Canadian entities to navigate the new landscape.
The IRCC cites application backlogs as the primary rationale for the cap, aiming to accelerate processing times and enhance program efficiency. However, stakeholders in the immigration and entrepreneur-funding sectors view these changes negatively, especially considering Canada’s previous status as the top destination for new businesses, as recognized by the Organisation for Economic Co-operation and Development (OECD) in 2023.