Immigration applicants for this Canadian program need to wait 52 months for a decision — now they also face skyrocketing refusals

Of note, another illustration of the challenges with respect to business immigration. Substantively, business immigration programs generate little return, with business immigrants paying the lowest amounts of income tax:

…But according to the Immigration Department, 17,919 SUV permanent residence applications are currently in the system, with an average processing time of 52 months. (For comparison, it takes 50 months for someone who has been granted asylum to bring family to Canada.)

That’s just not fast enough, Manasvi said.

“Canada needs entrepreneurs more than entrepreneurs need Canada,” said Manasvi, who previously worked at Nvidia and saw StackRaft become a platform used by more than 100 organizations and 50,000 software engineers before her exit from the venture in 2022. 

“If it takes a few years to approve a legit start-up founder in the backlog, you’re not going to attract the next Shopify. They will go to London or Dubai.”

Last year, Ottawa tweaked the program to limit intake and prioritize applicants with investment commitments from venture capital funds, angel investor groups and business incubators belonging to Canada’s Tech Network.

The federal government has also slashed the number of annual permanent resident spots for business immigration programs from 5,000 in 2024 to 2,000 this year, and 1,000 for 2026 and 2027.

In the first quarter of 2025, immigration data showed the two main SUV streams had a surge in refusal rates for permanent residence: to 73 per cent for those in business incubators, from 10 per cent in 2023 and 18 per cent in 2024; and to 85 per cent for those in angel investor networks, from 18 per cent and nine per cent, respectively.

SUV applicants are eligible for work permits that allow them to work on their projects in Canada while they wait for permanent residence. But the number of work-permit refusals has risen to 77 per cent from 55 per cent in the last year. Of all pending SUV permanent resident applications, only 3,345 have been approved work permits. 

“The government is trying to clean house,” said Toronto immigration lawyer Elizabeth Long. “Even though the program has many integrity issues, it is the only way that an entrepreneur these days can actually apply for permanent residence … We’re closing our doors to business.” 

The Immigration Department, which is currently reviewing and exploring business immigration programs, admitted that a growing backlog and wait times for SUV applicants is a challenge, but maintained officials are not refusing applications to “reduce inventory.”

The rules have not changed and the higher refusal rates are “simply an indication that fewer applicants are being found to meet the program requirements,” it said.

Launched in 2013, the SUV program replaced the Entrepreneur Program, which offered a three-year conditional residency for people with a minimum net worth of $300,000 and required that they open mall kiosks, corner stores, restaurants and other small businesses before they obtained permanent status.

The new program was designed to give Canada an edge on the global stage. However, wealthy foreigners looking to “buy” residency or experienced CEOs and small business owners have also used it for a shot at permanent residence. 

“Some of the people in the SUV program shouldn’t be there, but they’ve had no choice,” said Stephen Green of the Canadian Immigration Lawyers Association.

He said Ottawa needs to bring back investor and entrepreneur programs so the SUV program can attract real innovators as intended. The program is working, he added, but requires more robust compliance requirements on the gate keepers — the designated organizations responsible for issuing support letters. 

The SUV program has been increasingly sold by rogue agents as a pathway for permanent residence rather than a business opportunity for potential startups.

“You’re not supposed to be having a business so that you can immigrate,” said lawyer Zaynah Marani, whose practice focuses on business immigration. “It’s more like as a result of this business, I would be moving to Canada.”

To be eligible, an SUV applicant must receive a letter of support from organizations designated by Ottawa to vet business proposals based on their worthiness and readiness. These organizations are approved to invest in or support possible startups; some also charge applicants hefty fees for services such as mentorship, access to resources and networking opportunities.

“You’re sort of stuck having to take that route even if you don’t want to pay that,” Marani said.

The number of designated organizations has grown from 28 to 77 since 2013, which contributed to the program’s backlog. To cap intake, Ottawa last year decided each organization could only submit up to 10 SUV permanent residence applications annually.

Fast-tracking processing of applicants with committed capital will admit startups that have a stronger chance of success by bringing their applications to the “front of the line,” said the Immigration Department.

But critics say these changes risk putting real innovators at further disadvantage. 

Lawyer Zeynab Ziaie recently came across a startup visa broker, who helps applicants put together business ideas and get letters of support from SUV designated organizations. 

“I was like all your business is shuttered now,” Ziaie recalled. “He said, ‘No, the price has gone up.’ So what ended up happening is it prices out real applicants who have fantastic potential and it’s more in favour of people who have a higher net worth and can cover the costs that are associated with this.”

As part of a submission to the federal government in May, the Canadian Bar Association’s immigration law section recommended replacing the designated organization model with a ranking system that awards points to SUV applicants based on a startup’s alignment with high-demand sectors, existence of investment funds by credible Canadian sources, years of previous business experience, and demonstrated success in prior ventures.

It also calls for the reintroduction of investor programs that tie thresholds for investment and job creation with residency in order to channel capital into underdeveloped regions and infrastructure.

Former SUV applicant Manasvi, now a Canadian citizen, welcomes any initiative that could help nurture young entrepreneurs and support Canada’s startup ecosystem.

“Canada is a great country to build a business and be in,” said Manasvi, 40, who now advises and helps Canadian companies scale and expand in international markets. “We just have to be very clear on how we create and structure programs and not just why we do it.”

Source: Immigration applicants for this Canadian program need to wait 52 months for a decision — now they also face skyrocketing refusals