Canada has abruptly announced the suspension of the peer review process for the Start-Up Visa program.
A notice on August 22 from Immigration, Refugees and Citizenship Canada (IRCC) said “all peer reviews had been paused until further notice”. The pause was imposed “as of August 1”, it said.
“No new peer review requests are accepted, and all ongoing peer reviews must be cancelled,” the notice said.
The decision means that IRCC officers will now be solely responsible for deciding the validity of a Start-Up Visa application and commitment from a designated entity.
Stakeholders fear this could lead to further litigation in the SUV field due to concerns over the level of expertise of immigration officers in often complex new businesses.
What Is A Peer Review?
The peer review process is intended to weed out fraud in the SUV program. By convening a panel of industry experts to study an application and commitment by a designated entity, the process aims to ensure all activities are in line with required standards.
Prior to the recent announcement, an immigration officer would request a peer review if there were any concerns over an application. It was also used for quality assurance.
The panel of experts would then look at the due diligence performed by the designated entity and the terms of the commitment, including any fees charged to applicants.
The panel would also look at whether the agreement met the terms of the SUV program, including whether the business will be incorporated in Canada, business ownership details, whether the project is viable and whether it was accepted into a business incubator program.
Any concerns raised by the panel would then be sent to the officer and taken to the SUV designated entity and applicant.
Why Has The Peer Review Process Been Paused?
IRCC appears to have lost faith in the peer review process, causing it to abruptly pull the plug at the start of August.
This could have happened for any number of reasons, but it seems likely officials discovered some abuses of the system that meant it needed to be suspended to avoid any further problems.
What Does This Mean For The SUV Program?
The SUV continues to be an excellent way for business-minded individuals to move quickly to Canada. However, the suspension of peer reviews changes the process.
Now, where an officer has concerns over the validity of an application, they must decide themselves whether it will be successful or not. IRCC officers are not experts in such fields. Previously, the peer review system was intended to give them access to experts who would inform these decisions.
The fear is that this will open up the SUV to litigation from unsuccessful applicants who would previously have been subject to the peer review process.
The Future Of The SUV
Canada’s SUV continues to grow. The latest data from Immigration, Refugees and Citizenship Canada (IRCC) reveals the country welcomed another 560 new permanent residents through the SUV in June, the exact same level as in May.
The number of foreign nationals who had become new permanent residents to Canada by the end of June hit 3,010, or 785.3 per cent more than the 340 newcomers in the first six months of 2023.
At this rate of SUV immigration, Canada could welcome 6,020 immigrant entrepreneurs to the country by the end of this year.
This makes it one of Canada’s fastest growing immigration programs, as it looks to attract the best newcomer entrepreneurs from around the world.
The basic government-imposed candidate eligibility requirements for the SUV are:
- a qualifying business;
- a commitment certificate and letter of support from a designated entity;
- sufficient unencumbered, available and transferable settlement funds to meet settlement funding, and;
- proficiency in English or French at the minimum Canadian Language Benchmark level 5. However, it frequently occurs that higher levels of English are needed to meet due diligence requirements imposed by designated entities.
The Process
Month 1-5: Start-up Approval and Due Diligence Process
- The start-up concept is developed and approved during this phase.
- Immigration.ca assists in building the start-up team.
- Team members bring their expertise to support the start-up individually, while collectively bringing essential experience and skill sets.
- The start-up is presented together with Immigration.ca to a designated organization.
- The start-up undergoes due diligence during this period.
Month 6-7: Final Letter of Support
- Immigration.ca guides and supports the process of obtaining the Final Letter of Support.
- The designated organization, usually an Incubator, issues the Final Letter of Support within the first 6-7 months.
Month 8-30: Processing application for Permanent Residence and Early Entry Work Permit
- Upon receiving the Letter of Support, the application for Canadian Permanent Residence can be submitted.
- Where applicable, the application for a Work Permit can also be submitted.
- The approximate processing time for a work permit is 6 months from submission.
- The approximate processing for Permanent Residence is 22 months from submission.
