To the OP: if your husband is refused as a sponsor by CIC, you get your money back, minus the $75 fee. There is a box to check that says what you want CIC to do if the sponsor is found ineligible to sponsor. I assume you checked that you want to abandon the application (so you get your money back.)
Then: see why he was found to be ineligible, and try to fix this problem. Then apply again. If the only problem is a lack of an Option C, it doesn't matter. He can still be approved. If the problem is he is on welfare, then work to get off welfare and apply again. Other problems - like a criminal conviction - are harder to overcome.