(CANADA) Canada is closing the door to new applications under the Start-up Visa (SUV) Program at the end of 2025, a sharp turn for a pathway long marketed as a fast track for founders with big ideas. The program has become bogged down by long waits and a growing inventory of files. Immigration, Refugees and Citizenship Canada (IRCC) said on December 19, 2025 it “will no longer accept new SUV applications after December 31, 2025, at 11:59 pm,” as the government prepares a replacement route to permanent residence aimed at business creators.
Why IRCC is closing the SUV intake
IRCC plans to roll out a targeted pilot program for immigrant entrepreneurs as part of Canada’s Talent Attraction Strategy, with details to be announced in 2026. The closure is intended to help the department:
- Shift resources toward the new pilot program
- Reduce inventory in its business immigration streams
- Stem new demand entering an already overburdened system
This creates a narrowing window and a confusing transition period, especially for founders who were still lining up support letters from designated groups.
Important exception and deadlines
There is one major carve-out to the closure:
- IRCC will still accept applications tied to a valid 2025 commitment certificate issued by a designated organization, but only if the permanent residence application is filed by June 30, 2026.
Practical effect:
- This protects founders who already reached the final stage of securing backing in 2025.
- It shuts out those who planned to start the process in 2026 or later.
- Applicants and advisors are watching closely to see how strictly IRCC enforces the “valid 2025” requirement.
Changes to work authorization
Work authorization tied to the SUV is tightening:
- Optional open work permits for new SUV applications will no longer be available.
- Exceptions: Extensions will be permitted for people already in Canada on an SUV work permit.
Why this matters:
- The ability to work while a permanent residence file is queued has often been the difference between keeping a start-up alive and watching it fold.
- The work permit change, combined with the end-of-year intake freeze, signals an attempt to stop new demand from entering an overburdened system.
Backlog and processing times
IRCC has faced mounting problems in the SUV stream:
- Approximate backlog: 43,200 SUV applications
- Processing times:
- Over 10-year processing times for new applicants as of October 2025
- 37 months reported in April 2024 (prior benchmark)
Even after intake limits and rule tightening, inventory continued to swell—pushing founders and investors to view the SUV as uncertain, even for viable, well-funded projects.
Previous measures to fix the SUV and their limits
The government tried multiple measures before deciding to close the stream:
- Cap on designated organizations: 10 startups per year (from April 30, 2024 to December 31, 2026)
- Permanent resident admissions target for SUV: reduced to 2,000 in 2025 (down from 5,000 in 2024)
- Open work permits introduced October 3, 2024
- Suspension of peer reviews: August 1, 2024
- New “significant economic benefit” requirements introduced in 2025
Despite these steps, the inventory and associated waits kept rising, creating political and economic issues for start-ups that require speed and certainty.
Impact on founders, investors, and the market
Long processing times affect startups in multiple ways:
- Harder to raise money
- Difficult to sign leases and hire staff
- Risk that business plans go stale before decisions arrive
According to analysis by VisaVerge.com, the closure is likely to push more entrepreneurs toward provincial programs that can move faster and provide clearer timelines.
“Uncertainty itself may drive talent to other countries with clearer rules.”
— Concern echoed by lawyers, incubators, and some founders
Alternatives: Provincial and other routes
For entrepreneurs seeking Canadian permanent residence without entering the SUV backlog, the main alternatives are provincial and other business routes.
Key alternatives include:
- Start-up Visa (SUV) Program
- Provincial Nominee Programs (PNPs)
- Provinces select candidates based on local economic needs, including business creation
- Often faster than federal SUV processing
- Example — British Columbia (BC PNP Entrepreneur Immigration):
- Streams: Base and Regional
- Registration: online with a $300 fee
- Applicants submit a business concept and are scored on factors such as experience, education, and language
- Invited applicants can operate the business under a work permit, often for about 18–20 months, before seeking nomination and then applying to IRCC for permanent residence
- Contact: [email protected]
- Owner-operator work permits
- Entrepreneur buys or starts a business and may transition to permanent residence after 1 year of active management
- Quebec-specific pathways
- Require proof of residency in the province
Processing speeds (comparative):
- PNP-related routes: 5–20 months
- SUV (in more normal conditions): 41–43 months
- New SUV applicants (as of Oct 2025): over 10 years
Other federal business streams and current freezes
- IRCC’s Self-Employed Persons Program was paused on April 30, 2024, and remains on hold “until further notice.”
- With the SUV closed to new filings after December 31, 2025, and the self-employed stream paused, federal business immigration options are limited until the 2026 pilot is defined.
What’s next and where to watch for updates
IRCC has not yet released details about the targeted pilot program for immigrant entrepreneurs beyond its linkage to the Talent Attraction Strategy in the latest Immigration Levels Plan. That lack of detail is already influencing decisions:
- Some founders are rushing to meet the SUV deadline
- Others are waiting for the 2026 pilot, hoping it will be faster or better suited to modern start-up realities
IRCC’s official confirmation, including the status of the SUV stream, can be found on the department’s Start-up Visa page: Start-up Visa page
Quick summary (key facts)
- IRCC will stop accepting new SUV applications after December 31, 2025 (11:59 pm).
- Exception: applications linked to a valid 2025 commitment certificate may be filed until June 30, 2026.
- SUV backlog: about 43,200 applications; processing times reached over 10 years by Oct 2025.
- Work permits for new SUV applications are generally removed (extensions allowed for current SUV permit holders).
- Provincial routes (PNPs) and owner-operator permits are the main alternatives for entrepreneurs.
- IRCC plans a targeted pilot for immigrant entrepreneurs in 2026, but details remain pending.
Canada will close the Start-up Visa (SUV) Program to new applications on December 31, 2025. Facing a backlog of over 43,000 cases and ten-year wait times, the government is pausing intake to prepare a new entrepreneur pilot program for 2026. Only those with valid 2025 commitment certificates have until June 2026 to apply. Founders are now looking toward provincial alternatives for faster, more predictable processing.
