Final International Entrepreneur Rule Issued

By: Vishal Chander

On January 17, 2017, the Department of Homeland Security issued final rules regarding discretionary parole authority to entrepreneurs of start-up entities who can demonstrate a significant public benefit to the United States.  Parole would be granted for up to 30 months, with potential extension for 30 months.

A summary of the new rules follows:

1.  Formation of a New Start-Up Entity. 

The applicant has formed a new entity in the United States within 5 years of the parole application and the business has substantial potential for rapid growth and job creation.

2.  Applicant is an Entrepreneur. 

Entrepreneur is well positioned to advance the entities business and provides evidence:

    1. Possesses significant (at least 10 percent) ownership interest at the time of parole
    2. Active and central role in the operations and future growth of the entity such that her knowledge, skills, or experience substantially assist the entity in conducting and growing its business in the United States.

3.  Significant U.S. Capital Investment or Government Funding. 

    1. Investments from established U.S. investors.  Proof of the receipt of significant capital from qualified U.S. investors with established records of successful investments.
    2. Receipt of capital totaling $250,000 or more from established U.S. investors with a history of substantial investment in successful start-up entities (venture capital firms, angel investors, start-up accelerators).
    3. Government Grants.  Proof of significant awards of grants from Federal, State, or local government entities with expertise in economic development, research and development, and/or job creation equality $100,000 or more.
    4. Alternative Criteria.  Alternative criteria under which an applicant who partially meets one or more of the above sub-criteria related to capital investment or government funding may be considered for parole under this rule if he or she provides additional reliable and compelling evidence that his or her entry would provide a significant public benefit to the United States. Such evidence would need to serve as a compelling validation of the entity’s substantial potential for rapid growth and job creation.

The applicant, spouse, and unmarried minor children may be considered for a discretionary grant of up to 30 months based on the significant public benefit that would be provided by the applicant’s parole into the United States.  The application would require payment of a fee and taking of biometrics.  No more than three entrepreneurs may receive parole for any one qualifying entity.  To be granted parole, USCIS adjudicators must find, based on the totality of the circumstances, that both: (a) the applicant’s parole would provide a significant public benefit, and (b) the applicant merits a grant of parole as a matter of discretion.

The entrepreneur would be authorized for employment incident to the grant of parole, but only with respect to the entrepreneur’s start-up entity. The entrepreneur’s spouse, if paroled into the United States, would be permitted to apply for employment authorization.

The proposed rule allows for re-parole for an additional period of 30 months, and only if, it can be demonstrated that entrepreneur entity has shown signs of significant growth since the initial grant of parole and such entities continue to have substantial potential for rapid growth and job creation. The following factors would be considered for a discretionary grant of an additional period of parole:

 

 

  1. Continuation of Start-Up Entity.  Proof that the entity has been lawfully operating in the United States and continues to have substantial potential for rapid growth and job creation.
  2. Applicant Continues to be an Entrepreneur.  Applicant continues to be an entrepreneur of the start-up entity who is well-positioned to advance the entity's business.  Applicant continues to possess a significant (at least 5 percent) ownership interest in the entity at the time of adjudication of the grant of re-parole and continues to have an active and central role in the operations and future growth of the entity, such that his or her knowledge, skills, or experience would substantially assist the entity in conducting and continuing to grow its business in the United States.
  3. Investments from established U.S. investors. Proof that the start-up entity received additional substantial investments of capital of at least $500,000 during the initial parole period from qualified U.S. investors (such as venture capital firms, angel investors, or start-up accelerators) with a history of substantial investment in successful start-up entities or government awards or grants from Federal, State or local government entities with expertise in economic development, research and development, and/or job creation.
  4. Revenue generation. Proof that the start-up entity has generated substantial and rapidly increasing revenue in the United States during the initial parole period by reaching at least $500,000 in annual revenue, with average annualized revenue growth of at least 20 percent, during the initial parole period.
  5. Job creation. Proof of substantial job creation in the United States during the initial parole period through the creation of at least 5 full-time jobs for U.S. workers during the initial parole period.
  6. Alternative criteria. Alternative proof which shows applicant partially meets one or more of the above sub-criteria related to capital investment, revenue generation, or job creation may be considered.

An applicant may have a maximum of 5 years of parole.  No more than three entrepreneurs may receive parole with respect to any one qualifying entity.  The entrepreneur and any dependents would be required to depart the United States at the expiration of parole, unless otherwise eligible to remain in the United States.

 



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