On August 24, 2016, United States Citizenship and Immigration Services (“USCIS”) announced a proposed “International Entrepreneur Rule” that would provide specific foreign entrepreneurs (and their dependents) temporary permission (referred to as “parole”) to enter and reside within in the United States. While foreign entrepreneurs would be granted parole specifically to allow them to manage their new US enterprises, their spouses would be allowed to obtain separate individual work permits without such restrictions.
To qualify, applicants must first successfully demonstrate to USCIS that their startup enterprises benefit the United States by driving rapid growth and creating jobs. The proposed rule imposes the following requirements on entrepreneurs seeking to benefit:
- The applicant has formed a startup entity in the US within the last three (3) years; and
- The applicant has an ownership interest in the startup entity of at least 15 percent, and also maintains an active and central role in the startup’s operations; and
- The applicant can demonstrate the startup’s substantial potential for rapid growth and job creation by demonstrating one (1) of the following elements:
- Receipt of at least $345,000 from certain qualified US investors who already possess established records of successful investments;
- Receipt of at least $100,000 in significant awards or grants from certain governmental entities; or
- Partially satisfying either a) or b) of the elements above, plus additional reliable and compelling evidence of the startup company’s substantial potential for rapid growth and job creation.
USCIS will grant successful applicants an initial parole period of two (2) years, with an additional three (3) years of “re-parole” available, but only if the applicant can demonstrate that their startup company:
- has grown significantly since the initial parole grant, and
- continues to demonstrate substantial potential for rapid growth and job creation.
The proposed “International Entrepreneur” parole application is distinguishable from the established E-1 Treaty Trader and E-2 Treaty Investor Visa categories, which have different criteria.
Jackson & Hertogs will continue to monitor for updates on this important development for entrepreneurs. Please contact our firm if you have questions regarding this proposed rule which is designed to help entrepreneurs and startup investors.
