The U.S. government proposed in August, 2016 that budding immigrant entrepreneurs be given temporary permission to be in the U.S. to start or grow their businesses. Hopefully this will offer a more open door to the U.S. to encourage entrepreneurship and economic growth. Start-up founders who can show a significant public benefit to the U.S. from the development of their new companies, can apply for ‘parole’ into the U.S. to grow their company and jobs. Parole does not equal a visa or green card – it allows them to be in the country and to work in their company only, for a maximum of 5 years total.
USCIS (Immigration) Director León Rodríguez said, “America’s economy has long benefitted from the contributions of immigrant entrepreneurs, from Main Street to Silicon Valley. This proposed rule, when finalized, will help our economy grow by expanding immigration options for foreign entrepreneurs who meet certain criteria for creating jobs, attracting investment and generating revenue in the U.S. ” The government estimates about 3,000 foreign nationals per year will be able to take advantage of the new program, and proposes a $1,200 filing fee.
Some famous U.S. companies started by immigrants include Google, eBay, Kohl’s, RadioShack, Dupont, and Colgate. More than 40 percent of Fortune 500 companies were founded by immigrants (90 companies) or by their children (an additional 114 companies), according to a report by the Partnership for a New American Economy. Record numbers of foreign nationals are earning STEM (science, technology, engineering and math) degrees at U.S. universities, but encounter obstacles if they want to use their new American education for American public benefit by starting businesses here.
The proposed rule runs 155 pages long; details are all-important of course. The big picture requirements are:
- Have at least a 15 percent ownership interest and an active and central role to its operations;
- The startup was formed in the United States within the past three years; and
- The startup has substantial and demonstrated potential for rapid business growth and job creation. This can be shown by:
- Receiving significant investment of capital (at least $345,000) from certain qualified U.S. investors with established records of successful investments;
- Receiving significant awards or grants (at least $100,000) 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.
- Up to three founders per start-up can be granted parole;
- Spouses and minor children can also be granted parole, and spouses can get employment authorization.
If approved, the entrepreneur may be granted an initial stay of up to two years to oversee and grow their startup entity in the United States. A subsequent request for up to three additional years would be considered only if the immigrant and entity continue to provide a significant public benefit. This can be shown by substantial increases in capital investment, revenue or job creation since the original parole was granted.
The rule isn’t in effect yet. But it’s a step in the right direction.
