The Start-Up Visa Program, launched in 2013, was designed to attract global entrepreneurs with innovative ideas who could create jobs and strengthen Canada’s economy. But today, the program is facing growing criticism due to extreme delays and soaring refusal rates.

The Backlog: 52 Months to a Decision

According to recent data, over 17,900 Start-Up Visa Program applications are currently pending, with an average processing time of 52 months. That’s more than four years—an eternity in the fast-moving start-up world. Entrepreneurs argue that this delay risks driving real innovators to faster, more competitive destinations like the UK or Dubai. As one former SUV applicant put it: “Canada needs entrepreneurs more than entrepreneurs need Canada.”

A Sharp Rise in Start-up Visa Program Refusals

In addition to long waits, SUV applicants are now facing much higher rejection rates:

• Business incubator stream: refusal rate jumped to 73% in 2025, compared to just 10% in 2023.
• Angel investor stream: refusals surged to 85%, up from 9% in 2024.
• Work permit refusals: increased from 55% to 77% within a year.

Of the nearly 18,000 pending permanent residence applications, only 3,345 applicants have been approved for work permits, leaving thousands unable to work on their ventures while waiting.

Why Is This Happening?

The Immigration Department insists it is not refusing cases to reduce backlog, but rather because fewer applicants meet program requirements. However, critics argue the designated organisation model—where business incubators, angel networks, or venture funds issue support letters—has created integrity issues and opened doors for misuse by brokers charging high fees.

To tighten controls, Ottawa has:

• Capped intake at 10 applications per organisation per year.
• Cut SUV allocations, reducing permanent resident spots from 5,000 in 2024 to 2,000 in 2025, and just 1,000 annually by 2026–2027.
• Prioritised applicants with committed capital from credible Canadian investors.

The Bigger Debate: Canada’s Business Immigration

The SUV replaced the Entrepreneur Program, which once required applicants to invest and operate small businesses in Canada. Critics say removing investor pathways has left entrepreneurs with fewer legitimate options.

Immigration lawyers and experts are calling for reforms, including:

• A points-based ranking system that rewards applicants aligned with high-demand sectors.
• Stronger compliance measures for designated organisations.
• Reintroduction of investor and entrepreneur programs to channel capital into underdeveloped regions.

Key Facts About the Start-Up Visa Program

The Start-Up Visa Program was meant to bring the next Shopify to Canada, but instead, it risks pricing out genuine innovators while rewarding high-net-worth applicants who can pay their way through the system. Unless reforms are made—faster processing, fairer selection models, and new business immigration streams—Canada may lose its competitive edge in attracting entrepreneurial talent. For aspiring business immigrants, the message is clear: Canada remains a great place to build a future, but policy clarity and faster processing are urgently needed to make the Start-Up Visa a truly effective pathway.

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