Today August 26, 2016 we bring entrepreneurs around the world exciting news regarding a new measure USCIS plans to implement designed to benefit entrepreneurs of startup companies. USCIS has announced a new proposal that will make it easier for certain foreign entrepreneurs to receive temporary permission to enter the United States, also known as ‘parole,’ for the purpose of starting or scaling their start-up business enterprise in the United States.
The rule has been referred to as the ‘International Entrepreneur Rule’ which will give the Department of Homeland Security (DHS) the authority to expand discretionary statutory parole status to eligible entrepreneurs of startup companies, who can demonstrate that the startup enterprise they are interested in creating, has a substantial potential to yield rapid growth, and job creation in the United States.
Under this new rule, DHS would be able to grant parole on a case-by-case basis to eligible entrepreneurs of startup companies who can demonstrate the following:
- At least a 15 percent ownership interest in the startup enterprise in question;
- That they take on an active and central role in the startup enterprise’s operations;
- That the startup enterprise has been formed in the United States within the past three years; and
- That the startup enterprise has proven to yield a substantial and demonstrated potential for rapid business growth and job creation as evidenced by:
- Having received a significant investment of capital of at least $345,000 from certain qualified U.S. investors that have a proven track record of success i.e. showing established records of successful investments;
- Having received significant awards or grants of at least $100,000 from federal, state, or local government entities; or
- By partially satisfying one or both of the above criteria, in addition to presenting other reliable and compelling evidence to show the startup entity’s substantial potential for rapid growth and job creation in the United States;
Under the rule, entrepreneurs are eligible to receive an initial stay of up to two-years for the purpose of overseeing and growing the startup enterprise in the United States. At the conclusion of the two-years, the entrepreneur would be required to submit a re-parole request to receive three additional years of parole. A re-parole request would only be granted if the entrepreneur and start up enterprise would continue to provide a significant public benefit to the United States demonstrated by the startup entity’s increases in either capital investment, revenue, or job creation.
This ‘International Entrepreneur Rule’ will be published to the Federal Register, at which time the public will have the opportunity to make comments on the proposed rule 45 days from its date of publication. The proposed rule will not take effect until the final rule is published in the Federal Register stipulating the date of enforcement.