Canada’s Start-Up Visa Suspension & the New 2026 Entrepreneur Pilot: What You Need to Know

On December 19, 2025, the Canadian government announced a dramatic shift in its strategy for immigrant entrepreneurs. These changes effectively end the current era of the Start-Up Visa (SUV) and Self-Employed Persons programs to make room for what IRCC states will be a completely redesigned system launching in 2026.

Facing a backlog of 42,200 applications including dependents, Immigration Minister Lena Diab has hit the “reset button” on federal business pathways.

1. Suspension of the Start-Up Visa (SUV) Program

Effective January 1, 2026, IRCC will stop accepting new commitment certificates from approved designated organizations.  Until then, designated entities with remaining quota from its Cap limit of 10 companies it supports for 2025, can submit new commitment certificates.  Entrepreneur applicants with a valid 2025 commitment certificate must apply for permanent residence by June 30, 2026.  By midnight December 31, 2025, the entire SUV program will officially pause to new Commitment Certificates and Letters of Support.

2. Immediate Suspension of new Start-Up Visa (SUV) Work Permits 

Effective December 19, 2025, IRCC has stopped accepting new applications for the optional open work permit previously available to SUV applicants. 

3. Short Grace Periods

There is a small “grace period” for those already in the pipeline:

• Existing Commitments: If you received a valid Commitment Certificate from a designated organization in 2025, you have until June 30, 2026, to submit your permanent residence application.
• Work Permit Extensions: Those already in Canada on an SUV work permit can still apply for extensions while their PR is processed.

4. Self-Employed Persons Program Remains on Ice

The pause on the Self-Employed Persons Program, which began in April 2024, has been extended indefinitely. IRCC intends to use this time to clear a massive inventory of applications and determine if the program—which targeted people in art, culture, and athletics—is still viable in its current form.

5. The 2026 “Entrepreneur Pilot”

The most significant news is the planned launch of a new, targeted pilot program for immigrant entrepreneurs in 2026. While full details remain under wraps, the government has hinted that the new pathway will:

• Align with the 2026-2028 Immigration Levels Plan, which slashes federal business spots by 50% (from 1,000 to just 500 per year).
• Prioritize entrepreneurs who are already in Canada on valid work permits.
• Focus on sectors with “significant economic benefit” and high-growth potential, moving away from the past “volume-based” model.

6. Bill C-12 Threatens Thousands of Pending Business Incubator Applications

Shockingly, in 2024 and 2025 thousands of permanent residence applications were submitted by applicants supported by government designated business incubators that failed to meet the April 2024 Ministerial Instructions (MI72).  These instructions created a Prioritization of applications in the Start-Up Business Class.

Under Bill C-12, IRCC will gain the authority to cancel such applications en masse, effectively clearing a massive backlog that has been dragging down overall processing times and led to the latest December 19, 2025 policy announcements.

Bill C-12 is currently before the Senate which adjourned on December 11, 2025, and will reconvene on February 3, 2026, following the holiday recess.

Frequently Asked Questions (FAQ)

I was just about to get my Letter of Support. Can I still apply?

Only if your Commitment Certificate is issued and filed with IRCC before the end of 2025. If so, you have until June 30, 2026, to file your PR application. If you do not have a certificate issued by December 31, 2025, the program is closed to you.

Why did the government pause the Start-Up Visa program?

Mismanagement became the program’s undoing. The surge in new applications without limitations, led to a massive backlog. The IRCC, as it has done on previous occasions during the past number of years, decided to “wipe the slate clean” to build a faster, more selective program that delivers results in a reasonable timeframe.   

Will the planned new 2026 program be easier to get into?

Likely the opposite. With a limited annual quota for federal business immigrations, for the foreseeable future, competition will be fierce. Expect higher requirements for capital investment, stricter vetting of business models, and a preference for entrepreneurs already contributing to the Canadian economy.

I am currently in Canada on an SUV work permit. Does this affect me?

You are in a relatively safe position. You can still extend your work permit, and the government has stated it will prioritize PR applications for SUV applicants who are currently residing in Canada. However, applicants working in Canada, supported by a designated organization that does not meet priority standing under MI72, are at risk to have their permanent residence applications cancelled when Bill C-12 comes into effect.

What are the processing priorities for pending SUV applications?

IRCC is prioritizing applications backed by:

• venture capital funds
• angel investor groups
• business incubators with committed capital of $75,000
• Designated Organizations in Canada’s Tech Network 

What can I do if I am in the backlog and being supported by a Designated Organization Incubator that does not meet prioritization?

A: Assuming the incubator is not part of Canada’s Tech Network (CTN), it can issue a term sheet for providing for the minimum $75,000 investment commitment, and this would qualify as “committed capital” with priority standing.  Applicants are responsible to ensure the term sheet being issued meets IRCC scrutiny.  Consult with a Canadian business immigration lawyer experienced in this area.

Are there any other options for business owners right now?

Since federal business programs are paused or closed, your best options are Provincial Nominee Programs (PNP). Many provinces, like Ontario and British Columbia, have their own entrepreneur streams, though these often require significant personal net worth and a commitment to settle in specific regions.

Will IRCC Re-launch a revised SUV program?

Possibly. But indications are the Start-Up Visa program as we know it is dead.  The latest policies signify a permanent end to the “open-door” era of this volume based federal business immigration program.  Indicators include:

• Quota Slash: The 2026-2028 Immigration Levels Plan has cut federal business spots by 50% (down to only 500 per year). This is too small to sustain a “program”.  A reincarnation will be a boutique “pilot” at best.  However, the new Entrepreneur Pilot could still include additional quota beyond the planned levels.
• Shift to Provinces: The federal government is likely moving away from managing individual business founders. Instead it will encourage entrepreneurs to use Provincial Nominee Programs (PNP), which are likely better at matching business owners to local regional needs.
• Strict Selection: The original SUV relied on “Designated Organizations” to vet founders. A revised SUV version will likely move that power back to IRCC using a “selection-by-invitation” model similar to Express Entry.  This means the “guaranteed” path under the SUV is likely gone for good.

What are anticipated processing times for recently submitted applications?

Industry insiders estimate that once IRCC can avail the new powers under Bill C-12, recently submitted applications may conclude in approximately 36 months.

What should I do while waiting for the 2026 Entrepreneur Pilot details?

Focus on “readiness.” Use 2026 to refine your business plan, secure Canadian market validation and improve your language scores. Since the new program will be highly selective, having a “shovel-ready” innovative business will be your biggest advantage when the doors reopen. Consult with a Canadian business immigration lawyer experienced in this area.