Canada Start-up Visa under scrutiny amid cash-for-visa allegations

(CANADA) — canada paused the acceptance of new commitment certificates for its Start-up Visa Program on January 1, 2026, after “cash-for-visa” allegations raised fears the initiative had become a “citizenship for sale” scheme.

The halt has left entrepreneurs and investors scrambling, with hundreds of thousands of dollars in legitimate investments now “in limbo” as Ottawa tightens screening and tries to restore confidence in a program built to attract global entrepreneurial talent.

What triggered the pause

Reports tied nearly 40% of current applications — about 4,000 out of 10,000 under review — to “fake ventures” or “artificial transactions.” That figure helped trigger the pause and a broader administrative crackdown.

Only applicants with valid 2025 commitment certificates can proceed, and they must submit their final permanent residence (PR) applications by June 30, 2026, under the new limits described in the program shutdown.

Key dates, figures and deadlines

Canada: enforcement, refusal rates and wider measures

• The Start-up Visa (SUV) has seen refusal rates surge to 85% as of early 2026. Officers have adopted a stronger “gatekeeping role” to test whether applicants have genuine entrepreneurial intent.
• Officials say the program’s reliance on commitment letters and documentation made it vulnerable to payments or fabricated evidence that could turn entrepreneurship into a transaction.
• Under Prime Minister Mark Carney, the government cut its 2026 permanent residency target to 380,000, down from a 2024 peak of 483,000, citing the country’s “capacity to welcome” newcomers.
• Canada has also raised proof-of-funds requirements to prevent “dummy” applications, increasing the financial burden on prospective immigrants.

Student stream and other entry channels under strain

• Canada rejected a record 74% of Indian student visa applications in late 2025 because of widespread document fraud.
• The “study, work, stay” pathway — once central to Canada’s talent strategy — has been undermined by those rejections, compounding uncertainty for families and applicants.
• Over 1 million work permits expired in 2025, and another 927,000 are set to lapse in 2026, creating a compliance and processing cliff Ottawa is trying to manage.

United States: integrity measures, fees, and rhetoric

• U.S. agencies have been tightening systems to prevent fraud and spillover effects from North American visa pathways as Canada and the U.S. compete for global tech workers and founders.
• The U.S. introduced a $250 “Visa Integrity Fee” under the One Big Beautiful Bill Act (OBBBA), signed into law July 4, 2025, and effective October 1, 2025. Most non-immigrant visa applicants pay the fee; short-term Canadian citizens are generally exempt, but Canadian permanent residents and those on work-related visas are not.
• USCIS announced a $1,000 Immigration Parole Fee on October 15, 2025, saying it was needed to “implement a new immigration parole fee required by the H.R. 1 Reconciliation Bill,” and to increase vetting resources.
• The U.S. also described other “Visa Integrity” measures, including a $100,000 fee for certain H‑1B visas (subject to litigation) and the suspension of visa issuance to 39 countries as of January 1, 2026, framed as national security protections.

“Under the leadership of President Donald J. Trump, Secretary of Homeland Security Kristi Noem, and Director Joseph Edlow, USCIS has taken critical steps to restore sanity and integrity to our immigration system. Since Jan. 20, 2025, USCIS has closed loopholes and implemented critically needed changes to better protect American communities and workers”.
— USCIS, “DHS Strengthens Integrity in Nation’s Immigration System, Returns to Commonsense Legal Immigration Levels.” (November 13, 2025)

Combined impacts for founders, workers and families

• The SUV pause shuts the door on new entrants seeking a Canada route based on venture commitments while providing a limited path for holders of 2025 commitment certificates who can meet the June 30, 2026 deadline.
• The higher 85% refusal rate makes outcomes unpredictable even for legitimate businesses, as officers scrutinize evidence to identify “fake ventures” and “artificial transactions.”
• Parallel tightening in the U.S. — new fees and parole charges — adds both cost and complexity for individuals who move between the two countries for work or entrepreneurship.
• The combined pressure of reduced PR targets, student visa rejections, work permit expirations, and higher evidentiary bars is producing a materially harder environment for people who once relied on multiple, complementary North American pathways.

Guidance and official sources

Public agencies have published guidance and notices through their official portals, including the IRCC website, U.S. government visa information at the Department of State’s visa page, and USCIS updates through its newsroom.

Bottom line for affected applicants

• The defining deadline for those who can still proceed is June 30, 2026 for holders of 2025 commitment certificates.
• Canada’s crackdown aims to separate real companies from “fake ventures” without letting the Start-up Visa program deteriorate into “citizenship for sale.”
• Founders, investors and prospective immigrants face tighter screening, higher costs, and compressed timelines as both Canada and the U.S. implement measures described as strengthening visa integrity.