Canada’s New Immigration Plan and Start-up Visa: A Rebalancing Act

The 2025-2027 Immigration Levels Plan unveiled by the Canadian government underscores a significant recalibration in its immigration strategy. Reducing the overall target for permanent residency from 485,000 in 2024 to 365,000 by 2027, this shift is a direct response to growing concerns about Canada’s capacity to integrate newcomers effectively, particularly amid housing shortages and rising costs of living. This isn’t just about numbers—it’s a reflection of broader public sentiment and the challenges that Canada faces today.

For much of the past decade, immigration was seen as a crucial lever for addressing labor shortages and supporting an aging population. But now, amid increasing pressure on infrastructure, services, and housing, public opinion has shifted. With a growing number of Canadians saying there is “too much immigration”, the government has responded by pulling back on ambitious targets. The new plan is framed as a way to ensure that immigration doesn’t outpace the country’s ability to provide for new residents. Immigration Minister Marc Miller has highlighted that this shift is aimed at ensuring “sustainable integration”.

 

The SUV Program’s Focus on Venture Capital and Priority Processing

Amid these broader changes, the Start-Up Visa (SUV) program has seen a significant reduction in its quotas. The new plan sets the target at 1,000 to 2,000 applications annually, a return to levels seen in earlier years, such as 2020-2022 when targets hovered around 700-750 applicants. But this reduction doesn’t necessarily spell the end of the SUV program. In fact, it signals a strategic shift towards prioritizing higher-value ventures.

We anticipate the government to now focusing on cases supported by venture capital firms, angel investors, and business incubators that are part of Canada’s Tech Network or committing capital in the start-up. These cases will benefit from priority processing, ensuring faster approval times. This shift toward well-capitalized ventures reflects a broader strategy: fewer applicants but with a greater economic impact. For those able to secure backing from these priority pathways, the future looks optimistic.

 

Non-Priority Processing: A Manageable Outlook

For entrepreneurs who don’t fall into the priority categories, the situation is more nuanced. While processing times for non-priority cases could stretch over several years, the establishment of quotas in April 2024 has already had a positive effect in reducing submission numbers. This decline in applications should help alleviate some of the backlog, making the system more manageable despite the longer wait times.

Additionally, the extended delays for non-priority cases are likely to spur increased demand for the 3-year open work permit, which allows entrepreneurs to live and work in Canada while their permanent residency applications are processed. This offers a viable interim solution for those who are committed to settling in Canada, even if their permanent residency approval takes longer.

 

What This Means for Canadian Immigration

The changes to the SUV program, and the broader immigration plan, highlight a key shift in Canada’s approach to immigration. It’s no longer just about attracting large numbers of immigrants; it’s about ensuring that the system can handle them sustainably. The SUV program’s focus on priority processing cases is part of this recalibration—attracting high-value entrepreneurs who can contribute meaningfully to the economy, while still offering pathways for others, albeit with longer wait times.
This new strategy reflects a deeper question about Canada’s future as an immigrant-friendly nation: Can the country continue to use immigration as a growth engine, or have the social and economic costs begun to outweigh the benefits? The SUV program, in its newly adjusted form, might offer a glimpse into how Canada plans to balance these competing priorities.

Eterna International is committed to staying informed on any further updates to provide accurate and timely advice to our clients to help navigate these changes and ensure their applications proceed smoothly. 

Contact us for accurate and up-to-date information for your clients! 

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By Nicolas Laurin, President Eterna International

Nicolas Laurin has nearly two decades of experience in the practice of law and global mobility.
He has represented thousands of business immigration applicants wishing to settle in Canada via its different programs (such as the Quebec Immigrant Investor Program – QIIP and the Start-up Visa Program – SUV) and participated in the distribution of a number of EB-5 projects which made available hundreds of millions of dollars of capital for the development of public education in the United States of America.

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