After much anticipation, Immigration Services published today a proposed regulation that will help many foreign-national entrepreneurs. In an era when H-1B visa numbers are limited, this new avenue to U.S. immigration status brings necessary relief. More importantly, the regulations take the common-sense approach of embracing global talent, rather than pushing these economic engines outside our country’s borders.

America’s economy has long benefitted from the contributions of immigrant entrepreneurs, from Main Street to Silicon Valley,” said Director León Rodríguez. “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.”

In short, qualified entrepreneurs can obtain “Parole” status to live and work in the U.S. for up to 5 years with their families. As an added incentive, spouses will be eligible for U.S. work authorization. Quite possibly, such individuals will also have a path to apply for a green card. Keep in mind, however, that it will be several months until the regulations are possibly revised and then finalized. The following are the proposed requirements. (The full regulation is available at https://www.uscis.gov/sites/default/files/USCIS/Laws/Articles/FR_2016-20663_793250_OFR.pdf )

1. Formation of New Start-Up Entity. The applicant has recently formed a new entity in the United States that has lawfully done business since its creation and has substantial potential for rapid growth and job creation. An entity may be generally considered recently formed if it was created within the 3 years preceding the date of the filing of the initial parole application.

2. Applicant is an Entrepreneur. The applicant is an entrepreneur of the start-up entity who is well-positioned to advance the entity’s business. An applicant may generally meet this standard by providing evidence that he or she: (1) possesses a significant (at least 15 percent) ownership interest in the entity at the time of adjudication of the initial grant of parole; and (2) has 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 growing its business in the United States. Such an applicant cannot be a mere investor.

3. Significant U.S. Capital Investment or Government Funding. The applicant can further validate, through reliable supporting evidence, the entity’s substantial potential for rapid growth and job creation. An applicant may be able to satisfy this criterion in one of several ways:
a. Investments from established U.S. investors. The applicant may show that the entity has received significant investment of capital from certain qualified U.S. investors with established records of successful investments. An applicant would generally be able to meet this standard by demonstrating that the start-up entity has received investments of capital totaling $345,000 or more from established 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.
b. Government grants. The applicant may show that the start-up entity has received significant awards or grants from Federal, State or local government entities with expertise in economic development, research and development, and/or job creation. An applicant would generally be able to meet this standard by demonstrating that the start-up entity has received monetary awards or grants totaling $100,000 or more from government entities that typically provide such funding to U.S. businesses for economic, research and development, or job creation purposes.
c. 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.

We are excited for this progress on fixing our immigration laws! As more news develops, we will certainly blog about it.