According to the Federal Register, Vol. 82, No. 131, Tuesday, July 11, 2017, the Department of Homeland Security (DHS) is temporarily delaying the effective date of the International Entrepreneur Final Rule (82 FR 5238). During this time, DHS will obtain comments from the public regarding a proposal to rescind the rule pursuant to Executive Order (E.O.) 13767, ‘‘Border Security and Immigration Enforcement Improvements.’’ The effective date of the original regulation entitled International Entrepreneur Rule, published in the Federal Register on January 17, 2017, 82 FR 5238, is delayed from July 17, 2017, to March 14, 2018. Written comments must be received on or before August 10, 2017.
The original regulation authorizes parole for foreign entrepreneurs who can demonstrate that they will provide a significant public benefit to the United States as a result of economic growth or job creation resulting from their entrepreneurial activities. To qualify, the applicant must be an entrepreneur connected with a start-up entity who is well positioned to advance the entity’s business. The entrepreneur must own at least 10% of the entity at the time of the application and demonstrated that s/he plays an active and central role in the operations and future growth of the entity. Also, the “start-up” entity must have been formed within the five years immediately preceding the date of filing the initial parole application and it must have lawfully done business since its creation and have substantial potential for rapid growth and job creation. There are three ways that an applicant can demonstrate substantial potential for rapid growth and job creation, including any one of the following:
1. Investments from Established U.S. Investors: Investments of capital must be at least $250,000 from 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.
The U.S. organization or individual investor must (1) have made qualified investments of at least $600,000 in start-ups over the prior five-year period; (2) show that subsequent to such investment at least two such start-up entities created at least five qualified jobs or generated at least $500,000 in revenue, with average annualized revenue growth of at least 20%. A qualified job means full-time employment in the U.S. that has been filled for at least one year by a qualifying employee. A qualifying employee includes a U.S. citizen, lawful permanent resident, or other immigrant lawfully authorized to work in the U.S. who is not an entrepreneur of the start-up entity or the parent, spouse, brother, sister, son or daughter of such entrepreneur. Independent contractors do not qualify as employees.
2. Government Grants: Awards or grants of at least $100,000 from Federal, State or local government entities with expertise in economic development, research and development, or job creation;
3. Alternative Criteria: If the applicant only partially meets one or more of the above criteria relating to capital investment or government funding, s/he may still succeed with the parole application if s/he can provide additional reliable and compelling evidence that s/he would provide a significant public benefit to the U.S. upon receipt of the parole status.