Implications of IRCC Taking Over SUV Administration

Immigration, Refugees and Citizenship Canada (IRCC) takes over Canada’s Startup Visa (SUV) administration, ending its partnerships with the National Angel Capital Organization (NACO) and the Canadian Venture Capital and Private Equity Association (CVCA). This change follows a policy update in April 2024 that capped permanent residence applications to ten startups per designated organization to address the growing backlog.

The decision not to renew contracts with NACO and CVCA stems from challenges in the program's management. These challenges included a lack of control over due diligence processes, complaints, and the granting of designation to organizations ill-equipped to support startups properly. The failure to revoke designation status from problematic incubators, angels, or venture capitalist groups led to a surplus of applications and a backlog exceeding 16,000.

This administrative shift is expected to result in faster processing times and more rigorous questioning for applicants. The change aims to address ongoing challenges in the program and reduce the overall volume of applications. IRCC is now directly responsible for evaluating the due diligence of designated entities, rather than relying on peer reviews conducted by industry associations.

How to Overcome Challenging Implications of IRCC Takes Over SUV Administration

Applicants are advised to provide well-structured business proposals and demonstrate visible business progress to facilitate the government's evaluation process. The end of peer reviews does not eliminate the need for designated entities to explain their due diligence; these discussions will now occur directly with IRCC officials.

As IRCC reviews the SUV program, its future administration remains uncertain. If a new contract is deemed necessary, the government will post a tender on CanadaBuys. Meanwhile, at least ten organizations have been removed from the list of designated organizations for the SUV program.

This change in administration is seen as a step towards addressing the program's challenges and ensuring more effective management of startup visa applications in Canada.