Great news for fellow entrepreneurs (we hope)! The U.S. Citizenship and Immigration Services (USCIS) published a final rule that will allow certain international entrepreneurs to come to and stay in the United States to oversee and grow their startups. This rule, known as the International Entrepreneur Rule, was proposed last August, and with its publication in the Federal Register, will become effective July 17, 2017 (unless the new administration rescinds it). You can read the Rule in its entirety here.
Why is the International Entrepreneur Rule important?
U.S. immigration policy has traditionally been unfriendly to international entrepreneurs. Until now entrepreneurs had a hard time conforming to the very specific criteria of other available visas. For example, the H1-B work visa allows talented individuals to come to the U.S. for work, but because of its strict sponsorship requirements, most entrepreneurs could not overcome the almost impossible hurdles of self-sponsorship. The E-2 investor visa is only available to entrepreneurs from certain treaty countries.
What is the difference between parole and a visa?
The distinction between being paroled into the U.S. and being admitted to the U.S. as a nonimmigrant on a visa is important. It is also important to understand that the International Entrepreneur Rule is a parole status, rather than a visa option. Although there are many technical differences between a visa and parole, the most important for purposes of this Rule is to understand that parole is not technically “admission” into the U.S. and does not require that the parolee obtain a visa (or a visa waiver). The U.S. Department of Homeland Security (DHS) has a lot of discretion in determining how and whether to parole someone into the U.S.
Who is eligible for parole under the International Entrepreneur Rule?
Under the Rule, DHS can, in their discretion allow eligible entrepreneurs of startups to enter and stay in the U.S. if they meet specific requirements (this is called “parole”). In keeping with its intended goal, these entrepreneurs must demonstrate that they provide a significant public benefit to the United States by way of economic growth or job creation. The initial requirements are as follows:
1. Formation of a new startup entity: The applicant much have recently formed (within 5 years) a new entity in the U.S. that has a “substantial potential for rapid growth and job creation.”
2. Applicant is an entrepreneur: The applicant must be an entrepreneur that possesses:
a. significant (at least 10%) ownership interest in the entity; and
b. an active and central role in the operation and growth of the entity.
3. Significant U.S. capital investment or government funding: The applicant must “validate, through reliable supporting evidence, the entity’s substantial potential for rapid growth and job creation.” This can be done by showing it has investment from established U.S. investors, government grants, or other “additional reliable and compelling evidence that [it] would provide a significant public benefit to the United States.”
How do I apply for parole under the International Entrepreneur Rule?
The new application process requires that a Form I-941, Application for Entrepreneur Parole be prepared and filed with USCIS with a filing fee and biometrics fee. Applicants will be required to submit biometrics (digital photo and digital fingerprinting). If an applicant is successful (now called a “parolee”), he or she must enter the U.S., or leave and reenter the U.S. if he or she is already in the U.S. and enter as a parolee. A parolee’s spouse and dependent children may also apply for parole status. If granted parole status, a spouse and children can stay in the U.S. for the same time-period and, once in the U.S., the spouse can apply for work authorization. Parolee dependents seeking admittance to the U.S. will be required to file a Form I-131, Application for Travel Document and for work authorization a Form I-765, Application for Employment Authorization.
If an applicant is permitted to stay in the U.S. under the Rule, he or she can stay for an initial period of 30 months, after which time the parolee can apply to stay for an additional 30 months. There are again very specific, and even more strict, requirements that a parolee must meet to have his or her parole extended for the additional 30 months.
Unfortunately, although the final Rule has been published, as with any other regulation, the new administration could take steps to rescind it. Unless and until that happens though, the Rule will come into effect this summer and is a great, but as with all immigration options, tedious way for entrepreneurs to enter and stay in the U.S. to grow their businesses.
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