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It is our pleasure to announce that USCIS has now published the Final International Entrepreneur Rule in the federal register. The final rule is estimated to benefit approximately 2,940 foreign entrepreneurs on an annual basis beginning July 17, 2017. The rule will make it easier for eligible start-up entrepreneurs to obtain temporary permission to enter the United States for a period of 30 months, or 2.5 years, through a process known as “parole,” for the purpose of starting or scaling their start-up business enterprise in the United States. The foreign entrepreneur’s stay may be extended for an additional 30 months to allow the entrepreneur to continue to oversee and grow their start-up company in the United States. The decision about whether to “parole” a foreign entrepreneur under this rule will be a discretionary determination made by the Secretary of Homeland Security on a case-by-case basis (INA Section 212(d)(5), 8 U.S.C. 1182(d)(5)).

The goal of this final rule is to encourage foreign entrepreneurs to create and develop start-up companies with high potential for success in the United States, and enhance economic growth through increased capital spending and job creation.  Under this rule “parole” will be granted to eligible entrepreneurs who can demonstrate that their company’s business operations are of significant public benefit to the United States by providing evidence of substantial and demonstrated potential for rapid business growth and job creation. Such demonstrated potential for rapid growth and job creation may be evidenced by: (1) significant capital investment from U.S. investors with established records of successful investments or (2) attainment of significant awards or grants from certain Federal, State, or local government entities.

The final rule will allow up to three entrepreneurs to seek “parole” per-start up entity, as well as their spouses and children. Entrepreneurs who qualify for “parole” may only work for their start-up business entity in the United States. Their spouses in turn will be eligible to apply for employment authorization once in the United States.

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For years you have 8276375308_d5f2721898_zput your trust in our office for all of your immigration needs and for that we thank you. We consider ourselves very fortunate to be able to serve you and your families. Throughout the years, we have helped thousands of immigrants from all over the world attain their American dream. Learning about their lives and their struggles has

always been an important part of our practice. Although many challenges lie ahead for immigration, we are confident that important changes will come about in the new year. Do not despair and know that our office will be with you every step of the way. We wish you and your families the happiest of holiday seasons.

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In this post we bring you your daily dose of immigration updates. For more information on the immigration services we provide please visit our website. For a free first legal consultation please contact our office. It is our pleasure to accompany you on your immigration journey.

USCIS extends TPS Designation for Nepal for 18 months

The Secretary of Homeland Security recently announced that Temporary Protected Status (TPS) for eligible nationals of Nepal will be extended for an additional 18 months, beginning December 25, 2016 through June 24, 2018. Eligible TPS applicants must either be foreign nationals of Nepal or habitually resided in Nepal. DHS will be extending current TPS Nepal Employment Authorization Cards (EADs) with a December 24, 2016 expiration date for an additional 6 months, valid through June 24, 2017.

For more information regarding TPS for Nepal please click here. For information about the TPS program please click here. Employers interested in verifying or reverifying the employment eligibility of employees who are TPS beneficiaries, may click here for more information.

EADs Extended 6 Months for Guinea, Liberia and Sierra Leone TPS Beneficiaries

Current Beneficiaries of the Temporary Protected Status (TPS) program for the designations of Guinea, Liberia, and Sierra Leone have had their TPS status extended for a period of 6 months, to expire on May 21, 2017. The Department of Homeland Security authorized this temporary extension to allow beneficiaries to make an orderly transition out of the United States, before termination of their TPS status on May 21, 2017. Current beneficiaries of the TPS program from these designations will automatically retain their TPS status until this date, and the validity of their current Employment Authorization Cards (EADs) will be extended through May 20, 2017.

Click here for more information about the 6-month extension of orderly transition before termination of TPS designations for Guinea, Liberia, and Sierra Leone. For general information about the TPS program please click here.

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Today, October 24, 2016 the Department of Homeland Security published the final rule increasing fees for certain immigration and naturalization petitions processed by U.S. Citizenship and Immigration Services (USCIS). Overall the Department of Homeland Security increased filing fees for certain petitions by an average of 21 percent. The new fees will be enforced by USCIS beginning December 23, 2016. The fee schedule has been adjusted following the agency’s decision to conduct a comprehensive review of filing fees for fiscal year 2016/2017. USCIS determined that an adjustment in the filing fees would be necessary in order for USCIS to recover costs for services expended and maintain adequate service. The proposed fee schedule was first published on May 4, 2016. The final rule clarifies that all persons applying for immigration benefits may be required to appear for biometrics services or an interview, and thus must pay the biometrics services fee accordingly.

EB-5 Investor Visa Program

The EB-5 Immigrant Investor Visa Program will be most heavily impacted by the new fee schedule. The new filing fee for Form I-924, Application for Regional Center under the Immigrant Investor Pilot Program, will increase by a rate of 186% requiring Regional Centers seeking designation under the program, to pay a filing fee of $17,795 instead of the current rate of $6,230. Regional Centers will be required to pay a $3,035 annual fee to certify their continued eligibility for the designation.

The filing fee for the I-526 Immigrant Petition by Alien Entrepreneur, an application associated with the EB-5 visa program, will increase to $3,675, a 145% increase up from the current rate of $1,500. The filing fee for an investor’s petition to remove conditions on residence remains unchanged.

Naturalization

USCIS has established a three-tiered fee schedule for naturalization applicants filing Form N-400 Application for Naturalization. First, the fee schedule includes a standard filing fee for most applicants, from a rate of $595 to $640. Second, DHS has established a reduced fee of $320 for naturalization applicants whose household income is greater than 150% but less than 200% of the Federal Poverty Guidelines. Third, there will be no filing fee for naturalization applicants who are members of the military, applicants with approved fee waivers, and others who may qualify for a fee waiver according to sections 328 or 329 of the Immigration and nationality Act (INA).

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In this post, we discuss the latest immigration news beginning with the recent Congressional Approval of the Continuing Resolution Act that will allow funding to continue for the EB-5, Conrad 30, and special non-ministerial religious worker programs for fiscal year 2017. With the passage of this Continuing Resolution, these programs will remain afloat at least for the time being. On September 28, 2016 Congress averted a government shutdown by continuing funding for key programs with the passage of the Continuing Appropriations and Military Construction, Veterans Affairs, and Related Agencies Appropriations Act of 2017. This Act will extend the EB-5 Regional Center Program and EB-4 non-minister special immigrant visa program for religious workers until December 9, 2016. In terms of adjustment of status filing dates for employment-based preference categories, USCIS has announced that for the month of October, foreign nationals seeking to apply for employment-based adjustment of status (EB-1 to EB-4 preference categories) may do so by using the Dates for Filing Applications Chart of the October Visa Bulletin for 2016. EB-5 adjustment of status applicants must use the Final Action Dates chart of the October Visa Bulletin.

What does this mean?

The signing of the Continuing Resolution Act means that this year we will not be facing a government shutdown as in previous years. This is very good news given that the upcoming elections (both for the U.S. president and Congressmen and women) may have been a factor in Congress not being able to meet the deadline to continue government funding for these key programs. EB-5, Conrad, and non-ministerial religious worker programs will continue without interruptions since these programs are part of the CR.

What will happen after December 9, 2016?

On December 9th the government will be facing another deadline that will require Congress to continue funding these very important programs. If Congress does not meet the funding deadline for these programs through the passage of another Continuing Resolution or Omnibus package, the government could face another shutdown. This would take place after the elections, but before the new Congress is in session. If an Omnibus is passed, the possibility of reforms and/or changes to the EB-5, Conrad, or non-ministerial religious worker programs is worth noting. Recent controversies may lead to reforms in the EB-5 program although it is unlikely that major reforms and/or changes to the EB-5 program will pan out before the December 9th deadline.

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By the end of this month the EB-5 Immigrant Investor Visa Program will be up for renewal before Congress. The EB-5 program was first established by Congress in 1990 in an effort to increase the amount of foreign capital investment in the United States, and to create new jobs for Americans. In 1992 Congress expanded the program and created the Immigrant Investor Visa Program as we know it today, which allows foreign investors to invest in an EB-5 Regional Center project. A regional center is an authorized organization, entity, or agency that is designated by USCIS to sponsor capital investment projects within a specific geographic area including areas of high-unemployment or rural areas.  Section 203(b)(5) of the Immigration and Nationality Act, 8 U.S.C. Section 1153(b)(5) limits the number of immigrant visas that may be issued to EB-5 investors to 10,000 immigrant visas per fiscal year, provided the qualified investor is seeking permanent resident status on the basis of the creation of a new commercial enterprise. Half of these visas are allocated to EB-5 investors participating in a regional center pilot program. The required investment amount in a new commercial enterprise is $1,000,000 or $500,000 if the investment is being made in a targeted employment area experiencing a high unemployment rate of 150% relative to the national average, or a designated rural area as established by the Office of Management and Budget (OMB).

Despite its promise to increase economic growth, the EB-5 Immigrant Investor Program has been the subject of much criticism due to an increase in fraud on behalf of investors and regional centers, as well as the continued use of unlawful funds. This month, the United States Government Accountability Office (GAO) published a report that will be reviewed by Congress and USCIS, in consideration of new measures that may be implemented by Congress as part of the program’s renewal process. The report outlines the inherent weaknesses of the EB-5 program and areas of concern.

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Last week we introduced the unveiling of an exciting new rule called the ‘International Entrepreneur Rule’ which will allow certain entrepreneurs the opportunity to seek ‘parole’ into the United States, based on his or her role in the startup company, provided the company can demonstrate substantial potential for rapid growth and job creation in the United States.

Eligible entrepreneurs will need to be prepared to demonstrate that their entry would create a significant public benefit in the United States, and provide ‘substantial’ and ‘demonstrated potential’ to create more jobs and business growth in the United States, and not merely provide income to the entrepreneur and his or her family members. In this post we will review the requirements, clarify definitions, and describe what evidence can be provided in support of an entrepreneur application.

If this new initiative becomes a final rule, it is estimated that up to 2,940 entrepreneurs would be eligible to apply for this new program on an annual basis. Recently, the Notice of Proposed Rule-making (NPRM) in the Federal Register has provided more guidance on exactly which entrepreneurs and start up enterprises may apply. In addition, more information has been provided regarding which investments will qualify.

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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:
  1. 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;
  2. Having received significant awards or grants of at least $100,000 from federal, state, or local government entities; or
  3. 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;

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If you are a foreign entrepreneur, you have probably discovered that the United States immigration system is very limited in that there are very few visa options available to entrepreneurs that do not tie down the entrepreneur to a foreign employer, as is the case for the L and H visas. To make matters worse, if your ultimate goal is to obtain a green card to live and work in the United States permanently, you must work for an American employer willing to sponsor your adjustment of status. Although there are few exceptions, the main avenue through which entrepreneurs can gain permanent residence is either through family-sponsorship or employment-based sponsorship.

To obtain permanent residence through an employer you must either a) be a professional employed by a U.S. employer willing to sponsor your green card b) demonstrate extraordinary ability in your industry (science, arts, education, business, or athletics, c) work in a management or executive position abroad requiring international transfer to the United States or d) qualify as an EB-5 investor. In either of these cases, the U.S. employer must submit the I-140 Immigrant Petition for Alien Worker for you, before you can apply for permanent residence. If your ultimate goal is not to obtain a green card, then you have more options available to you.

We decided to write about this topic because we have found that many entrepreneurs that visit our office are not well-informed on other visa types that put them on a more direct path to permanent residence. Often times the topic of conversation leads to the E-2 Treaty trader visa, by far the most discussed visa type among entrepreneurs. Few entrepreneurs however have heard about the L-1 visa classification, that may in some ways be more beneficial to foreign entrepreneurs wishing to live and work in the United States permanently. Below we discuss both visa types and the advantages and disadvantages of both visas.

The E-2 visa, the most talked about visa:

Without a doubt, the most popular visa option entrepreneurs ask about is the E-2 visa. Many entrepreneurs however do not know that the E-2 visa is not available to everyone, and it is not a path to permanent residence. The E-2 visa is a non-immigrant treaty investor visa that is only available to foreign nationals from specific treaty countries. The E-2 visa allows foreign nationals to carry out investment and trade activities, after making a substantial investment in a U.S. business that the foreign national will control and direct. E-2 visa investors can either purchase an existing U.S. business or start a new business.

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A recent working paper published by Harvard economist, William R. Kerr, and Wellesley economist, Sari Pekkala Kerr, is making waves on the subject of immigrant entrepreneurship. The study asks: just how important are foreign-born entrepreneurs to our economy? Are their contributions truly significant?

The study’s abstract reads as follows:

We examine immigrant entrepreneurship and the survival and growth of immigrant-founded businesses over time relative to native-founded companies. Our work quantifies immigrant contributions to new firm creation in a wide variety of fields and using multiple definitions. While significant research effort has gone into understanding the economic impact of immigration into the United States, comprehensive data for quantifying immigrant entrepreneurship are difficult to assemble. We combine several restricted-access U.S. Census Bureau data sets to create a unique longitudinal data platform that covers 1992-2008 and many states. We describe differences in the types of businesses initially formed by immigrants and their medium-term growth patterns. We also consider the relationship of these outcomes to the immigrants’ age at arrival to the United States.

The study is important because it forces members of Congress to conduct a cost-benefit analysis, in order to determine whether or not it is beneficial for the United States to create more opportunities for highly-skilled entrepreneurs and professionals. Regrettably, the immigration debate has largely centered around illegal immigration to the United States, ignoring calls to create more flexibility for highly-skilled immigrants and immigrant entrepreneurs. As it stands today, immigrant entrepreneurs can only obtain a green card via sponsorship from a United States employer. The majority of entrepreneurs are forced to remain in the United States on a temporary ‘dual intent’ nonimmigrant visa, until a U.S. employer agrees to sponsor their green card. Visa options are very limited for highly-skilled immigrants. Even for the most brilliant of entrepreneurs, this process requires time and patience. Our current immigration laws are doing us a disservice since they are keeping out some of the most talented entrepreneurs in the world. Immigrant entrepreneurs are increasingly important because the number of businesses and American jobs they create is on the rise.

Here are some of the study’s findings:

  • As of 2008, at least one in four entrepreneurs among start-up companies are foreign-born. Similarly, at least one in four employees among new firms are foreign-born
  • 37% of new firms had at least one immigrant entrepreneur working for the company
  • At least 1 in 3 start-up firms were founded by an immigrant entrepreneur, with an increasing rate from 1995-2008
  • The share of immigrants among all employees working for start-up companies is on the rise
  • Immigrant employees in low-tech positions comprise about 22.2% of start-up companies, while 21.2% of immigrants work in high-tech positions in start-up companies
  • Among new start-ups backed by venture capitalists, 60% had at least one immigrant entrepreneur
  • Immigrant employees working for a start-up company backed by venture capitalists have higher mean average quarterly earnings

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