The Department of Homeland Security (DHS) has published a final rule designed to enhance entrepreneurship, capital spending, innovation, and job creation in the U.S. by assisting founders of start-up companies to grow their companies here.
Under the final rule, DHS may use its “parole” authority to grant a period of authorized stay, on a case-by-case basis, to foreign entrepreneurs who demonstrate that their stay in the U.S. would provide a significant public benefit through the potential for rapid business growth and job creation.
Eligible entrepreneurs may be granted a stay of up to 30 months, with the possibility to extend the period by up to 30 additional months. Eligibility may be extended to up to three entrepreneurs per start-up entity, as well as their spouses and children. Entrepreneurs granted stays will be eligible to work only for their start-up business. Spouses may also apply for work authorization in the U.S.
To demonstrate eligibility, an applicant would need to demonstrate the following:
• They possess a substantial ownership interest in a start-up entity created within the past 5 years in the U.S. that has substantial potential for rapid growth and job creation.
• They have a central and active role in the start-up entity and can assist with the growth and success of the business.
• Their stay will provide a significant public benefit to the U.S., evidenced by:
– Showing that the start-up entity has received a significant investment of capital from certain qualified U.S. investors with established records of successful investments;
– Showing that the start-up entity has received significant awards or grants for economic development, research and development, or job creation, or other types of grants or awards typically given to start-up entities by government; or
– Showing that they partially meet one of the above requirements and providing additional reliable and compelling evidence of the start-up’s substantial potential for rapid growth and job creation.
DHS estimates that 2,940 entrepreneurs may be eligible under this rule each year.
While the new rule will not be effective until July 17, 2017, the President-elect’s own background and policy position on entrepreneurial investment in the U.S. means it is unlikely his administration will disagree with the new rule.