On January 13, 2017, Department of Homeland Security (DHS) published an advance copy of the final rule allowing for parole authority to be granted to start-up entrepreneurs. The final rule is scheduled to be published in the Federal Register on January 17, 2017 and would be effective 180 days from date of publication. Jackson & Hertogs first reported on the proposed rule in a news item on August 26, 2016.
Under these new regulatory provisions, parole would be granted to start-up entrepreneurs (and spouse and children) on a case-by-case basis to facilitate and oversee the growing of a start-up entity in the U.S. The initial parole would be for 30 months with the possibility of extending for an additional 30 months if it can be demonstrated that their start-up has shown signs of continuing growth since the initial application.
Applicants would need to provide evidence of substantial and demonstrated potential for rapid business growth and job creation and that they would provide a significant public benefit to the U.S. This includes:
- The applicant has recently formed a new entity in the United States within the 5 years immediately preceding the date of the filing of the initial parole application; and
- The applicant possesses a significant (at least 10 percent) ownership interest in the entity at the time of adjudication of the initial grant of parole; and has an active and central role in the operations and future growth of the entity; 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 investments of capital totaling $250,000 from established US investors with a history 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.
No more than three entrepreneurs may receive parole with respect to any one qualifying start-up entity. If parole is granted, the entrepreneur will be authorized for employment, but only with respect to the entrepreneur’s start-up entity. A spouse would be eligible to apply for work authorization once paroled into the US.
Jackson & Hertogs will continue to keep our clients apprised of future developments. Do not hesitate to contact us for a consultation.
