Many highly-skilled foreign nationals with H-1B visas in the United States are looking north to Canada for work due to massive layoffs in the American tech sector, reports CNBC.
The American business news channel has reported that 6,000 H-1B visa holders moved to Canada this year alone.
“The highly educated foreign national is really at the mercy of the U.S. employers,” Annie Beaudoin, a former Canadian immigration officer, reportedly told CNBC.
Under sweeping changes made by then-U.S. President Donald Trump, the H-1B visa program made it more expensive and difficult to get highly-skilled immigrant workers into the United States.
That was a massive blow to American tech companies but a boon to Canada’s high-tech sector.
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Companies like Google, Amazon, Meta, Microsoft, and Apple sponsor thousands of H-1B visa applicants every year but it has become very competitive for foreign nationals to land these work permits to the United States since they were first introduced in 1990.
CNBC reports that U.S. Citizenship and Immigration Services received 758,994 eligible applications for H-1B visas for next year but only 188,400 were picked for the final draw to actually get these permits.
And then, there have been layoffs hit the American tech industry. Microsoft laid off 10,000 employees. Amazon cut 18,000 jobs.
Under the rules of the H-1B visa foreign nationals had only 60 days to find a new sponsor, transfer their visa status or get deported.
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With all of these H-1B visa woes south of the border tech workers have gravitated towards Canada and foreign investors looking to set up in North America have taken a closer look at Canada and its Start-Up Visa (SUV) immigration program, many liking what they saw.
Candidates applying under the SUV program can initially come to Canada on a work permit supported by their designated Canadian investor before their application for permanent residence is finalized.
The entire process of applying for permanent residence to Canada through the SUV is currently estimated by the IRCC to take 37 months.
Under the SUV, three types of private-sector investors are considered: angel investors, venture capital funds, and business incubators.
SUV Allows Tech Workers To Set Up Businesses And Get Their Permanent Residence In Canada
A designated venture capital fund must confirm that it is investing at least $200,000 into the qualifying business. Candidates can also qualify with two or more commitments from designated venture capital funds totalling $200,000.
A designated angel investor group must invest at least $75,000 into the qualifying business. Candidates can also qualify with two or more investments from angel investor groups totalling $75,000.
A designated business incubator must accept the applicant into its business incubator program. It is up to the immigrant investor to develop a viable business plan that will meet the due diligence requirements of these government-approved designated entities.
Investing and the development of the business is usually done with the help of business consultants in Canada’s start-up ecosystem with oversight from experienced corporate business immigration lawyers who can ensure a start-up’s business concept meets all industry-required terms and conditions.
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.