We welcome today’s announcement by U.S.
Citizenship and Immigration Services (USCIS) which released the “International
Entrepreneur Rule”. This is a proposal of a new rule which will allow certain
international entrepreneurs to be considered for temporary permission to enter
the United States (parole). This proposed rule has significant
implications, not only for the thousands of potential entrepreneurs who may not
ordinarily consider investing in the United States, particularly if unable to
obtain a visa in the first place, but for our economy. USCIS acknowledged the
benefits America has enjoyed in today’s proposal. “America’s economy has long benefited from the contributions of immigrant entrepreneurs, from Main Street
to Silicon Valley,” said Director León RodrÃguez. “This proposed rule, when
finalized, will help our economy grow by expanding immigration options for
foreign entrepreneurs who meet certain criteria for creating jobs, attracting
investment and generating revenue in the U.S.”
The proposed rule would allow
entrepreneurs to apply for entry to the United States and an initial stay of up
to two years to oversee and grow their startup entity. A request for re-parole
(up to 3 additional years) would be considered if the entrepreneur and the
startup entity continues to establish a significant public benefit, which can
be demonstrated through substantial increases in capital investment, revenue,
or job creation. The Department of Homeland Security would review the
applications on a case-by-case basis, but generally the eligible entrepreneurs
of startup enterprises should have:
1) Significant (at least 15%) ownership
interest in the startup and have an active and central role to its operations;
2) A recent startup (formed in the U.S.
within the past 3 years);
3) A startup that has demonstrated
substantial potential for rapid business grown and job creation. This can be
evidenced by the following
a.
Receiving significant investment of capital (at least
$345,000) from certain qualified U.S. investors with established records of
successful investments;
b.
Receiving significant awards or grants (at least $100,000)
from certain federal, state or local government entities; or
c.
Partially satisfying one or both of the above criteria in
addition to other reliable and compelling evidence of the startup entity’s
substantial potential for rapid growth and job creation.
This would
not be the only way an entrepreneur could try and obtain, through their
investment in the U.S. economy, an immigration benefit. Some may be familiar
with one such program: EB-5 Investor Visa. The Eb-5 visa is discussed in more
detail HERE however this
proposed rule does not replace the Eb-5 program, which requires an investment
of $1 million (in certain cases as low as $500,000) in exchange for lawful
permanent residency for the foreign investor and his/her family. Contrasted
with the rule proposed today, the EB-5 visa requires a more significant
financial investment and the conditions are stringent and particular and will
potentially take more time to adjudicate, however significantly the Eb-5 visa
offers a benefit that cannot be compared: permanent residency.
This program
would be perfect for the startup that is serious about investing in the U.S.
and wants the ability to personally oversee their startup but is not yet ready
or interested in permanent residency, or at least not right away.
There will
be a 45 day commentary period following the publication in the Federal
Register. We will post an update on this blog with more information as it
develops and we urge the public to comment in support of the proposed
International Entrepreneur Rule when released. We have witnessed our world grow
increasingly smaller with advancements in science and technology in the past
few decades. Forward-thinking immigration rules such as the one proposed can
only position the U.S. for all kinds of growth in an ever-shrinking world.
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