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Home | Work Visas | Visa for Start-up Companies | Startup Visa (Final Rule on International Entrepreneur)

Startup Visa (Final Rule on International Entrepreneur)

January 17, 2017. USCIS, had published the final rule [Document Citation: 5238-5289] to encourage entrepreneurs throughout the world to develop their innovative ideas and create jobs in the U.S. This International Enterpreneur Parole (cf. Startup visa) program (Parole rule) is part of Executive Action President Obama had announced in November 2014.

This rule allows the Department of Homeland Security (DHS) to use its existing discretionary statutory parole authority for entrepreneurs of startup entities whose stay in the United States would provide a significant public benefit through the substantial and demonstrated potential for rapid business growth and job creation. DHS may parole, on a case-by-case basis, eligible entrepreneurs of startup enterprises:

  • Who have a significant ownership interest in the startup (at least 10 percent) at the time of adjudication of the initial grant of parole and have an active and central role to its operations and future growth of the entity, such that his or her knowledge, skills, or experience would substantially assist the entity in conducting and growing its business in the United States;
  • Whose startup was formed in the United States within the past five years; and
  • Whose startup has substantial and demonstrated potential for rapid business growth and job creation, as evidenced by:
    • Receiving significant investment of capital (at least $250,000, adjusted annually for inflation) from certain qualified U.S. investors with established records of successful investments;
      • Qualified investment means an investment made in good faith, and that is not an attempt to circumvent any limitations imposed on investments under this section, of lawfully derived capital in a start-up entity that is a purchase from such entity of its equity, convertible debt, or other security convertible into its equity commonly used in financing transactions within such entity's industry.
      • Qualified investor means an individual who is a U.S. citizen or lawful permanent resident of the United States, or an organization that is located in the United States and operates through a legal entity organized under the laws of the United States or any state, that is majority owned and controlled, directly and indirectly, by U.S. citizens or lawful permanent residents of the United States, provided such individual or organization regularly makes substantial investments in start-up entities that subsequently exhibit substantial growth in terms of revenue generation or job creation.  For purposes of this section, such an individual or organization may be considered a qualified investor if, during the preceding 5 years:
        1. The individual or organization made investments in start-up entities in exchange for equity, convertible debt, or other security convertible into equity commonly used in financing transactions within their respective industries comprising a total in such 5-year period of no less than $633,952; and
        2. Subsequent to such investment by such individual or organization, at least 2 such entities each created at least 5 qualified jobs or generated at least $528,293 in revenue with average annualized revenue growth of at least 20 percent.
    • Receiving significant awards or grants (at least $100,000, adjusted annually for inflation) from certain federal, state or local government entities; or
    • Partially satisfying one or both of the above criteria in addition to other reliable and compelling evidence of the startup entity’s substantial potential for rapid growth and job creation.

Under the rule, entrepreneurs who meets the above criteria (and his or her spouse and minor, unmarried children ) generally may be considered under this rule for a discretionary grant of parole lasting up to 30 months (2.5 years) based on the significant public benefit that would be provided by the applicant’s (or family’s) parole into the United States. An applicant will be required to file a new application specifically tailored for entrepreneurs to demonstrate eligibility for parole based upon significant public benefit under this rule, along with applicable fees. Applicants will also be required to appear for collection of biometric information. No more than three entrepreneurs may receive parole with respect to any one qualifying start-up entity.

A subsequent request for re-parole (for up to 30 months,  for a total maximum period of 5 years of parole) would be considered only if the entrepreneur and the startup entity continue to provide a significant public benefit as evidenced by substantial increases in capital investment, revenue or job creation.

This Final rule’s effective date was proposed to be effective from 07/17/2017 but the administration had delayed until a Federal court order of December 1, 2017 mandated government to implement the rule starting from the day the order was entered, December 1, 2017 (effective date of Startup Visa/Parole). 


For learning more about  this topic do contact our attorneys at (+1) 202 600-7745 or (+1) 888 820 4430 (toll free), or email us at info@adhikarilaw.com

 

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