If Canada is truly open for business, it can’t slam the door on incoming innovators

Canada has long prided itself on being a country governed by fairness, predictability, and the rule of law. These principles are not abstract ideals; they are the foundation of public trust and economic confidence. 

So, when the government makes a promise to the international community, it is expected to keep it. That is why the recent decision by Immigration, Refugees and Citizenship Canada (IRCC) to suspend the start-up visa (SUV) program and stop accepting SUV work permit applications as of December 19 demands urgent public scrutiny. 

This move comes at a time when immigration is under intense pressure. Many Canadians are understandably concerned about housing shortages, rising unemployment rates, strained infrastructure, and the pace of population growth. In this environment, confidence in the immigration system depends on more than just enforcement; it depends on proportionality and consistency.

Yet, while Canada experiences a "brain drain" of its own skilled professionals seeking opportunities abroad, the government is simultaneously slamming the door on incoming innovators who have the capital and expertise to create the very jobs Canada needs to prosper. 

Suspending new applications under the SUV program is not, in itself, a controversial move. The program has faced well-documented challenges, including long processing times and misuse by bad actors. Addressing these issues is a legitimate policy objective. 

What is deeply troubling, however, is the "scorched earth" manner in which this has been pursued. By suspending the program without a viable transition for those already in the queue, the government has left tens of thousands of good-faith applicants to absorb the consequences of administrative failure. 

These entrepreneurs did not merely submit paperwork; they made life-altering decisions for their families based on Canada's stated commitment to innovation. Many invested hundreds of thousands of dollars in this country and paid significant government fees. They are now being met with a reality that borders on the absurd. IRCC's own statistics show that between January 2024 and April 2025, approximately 77 per cent of SUV work permit applications were refused. 

Furthermore, based on current backlogs, it is estimated that processing pending permanent residence applications could take between 10 and 25 years.

In the start-up ecosystem, these timelines are not merely slow—they are terminal. Start-ups do not operate on multi-decade horizons, nor can businesses be paused indefinitely while founders wait abroad. By almost uniformly refusing work permits over the past year and now eliminating the pathway, IRCC is not only delaying entrepreneurs but also actively preventing them from managing their investments and hiring Canadians.

This creates a cruel paradox. To qualify for permanent residence under the SUV program, an applicant must demonstrate "active and ongoing" management of their business. Yet by denying them the ability to be physically present in Canada, the government effectively undermines their permanent residence applications at the source. One cannot reasonably be expected to grow a Canadian business from a distance while legally barred from working within our borders.

At the same time, Canada's political leadership continues to emphasize that the country is "open for business." This contradiction has consequences that ripple far beyond a single immigration stream. Canada's reputation as a fair and reliable partner is a competitive advantage in the global race for talent. When programs are abruptly halted, and applicants who followed the rules are left without recourse, that trust is eroded.

If Canada treats today's investors with such administrative whim, what would compel the next generation of innovators to trust us with their livelihoods and their capital?

The answer is not to abandon reform, but to pursue it responsibly. We call for a path forward grounded in fairness and accountability rather than administrative convenience. Reinstating access to work permits for existing applicants would allow these entrepreneurs to come to Canada, build their businesses, and contribute to the economy while broader reforms are implemented. Their applications should then be assessed based on real-world outcomes rather than stalled files and paper projections. 

These applicants are not passive beneficiaries of a system; they are highly skilled professionals who take significant personal, professional, and financial risks to contribute to this country’s future. Canada can address the shortcomings of the SUV program without sacrificing its own credibility on the altar of bureaucracy. Doing so is essential not only for the entrepreneurs affected today but also for preserving our standing as a country that keeps its promises and is genuinely open for business.

* This piece is written on behalf of the CBA’s Immigration Law Section