Articles Posted in International Entrepreneur Rule

Welcome back to the Immigration Lawyer Blog, where we discuss all things immigration. In this video, attorney Jacob Sapochnick gives you the most recent updates in the world of immigration including important information about the continuation of the International Entrepreneur Parole Program, the Department of Homeland Security’s recent decision to withdraw a biometrics rule that would have required biometrics to be taken for every applicant, the current status of interview waivers being granted during the COVID-19 pandemic, and finally new policy guidance issued by USCIS that provides deference to previous decisions for those filing extension requests with the agency.

Want to know more? Keep on watching.


Overview


The Continuation of the International Entrepreneur Parole Program

Today, May 10, 2021, the United States Citizenship and Immigration Services (USCIS) announced that the Department of Homeland Security (DHS) will be withdrawing a notice of proposed rulemaking first initiated under the Trump administration, which sought to terminate the International Entrepreneur Parole Program, a program first proposed by President Obama to facilitate the immigration of foreign entrepreneurs to the United States.

The proposed rule, “Removal of International Entrepreneur Parole Program,” was first issued by the Trump administration on May 29, 2018, shortly after President Trump signed Executive Order 13767 “Border Security and Immigration Enforcement Improvements,” into law. The proposed rule was masterminded by the Trump administration to ultimately delay the planned implementation of the program on July 17, 2017, with the goal of eventually dismantling it altogether.

To hinder the implementation of the program, with the passage of Executive Order 13767, former President Trump narrowed the pool of applicants who could become eligible for “parole,” and directed federal agencies to “ensure that parole authority under section 212(d)(5) of the INA is exercised only on a case-by-case basis in accordance with the plain language of the statute, and in all circumstances when an individual demonstrates urgent humanitarian reasons, or a significant public benefit derived from such parole.”

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Breaking news, a federal judge for the District of Columbia, issued a ruling in the lawsuit, National Venture Capital Association, et.al. v. Duke, et. al, overturning the government’s delay of the International Entrepreneur Rule. This means that international entrepreneurs may now apply for parole under the rule as of Friday, December 1, 2017. The caveat, however, is that since the ruling was just handed down on Friday, no application has yet been released to apply under the rule, and the current parole application is not suited for the rule. It is expected that the government will soon issue a statement regarding the court’s decision and provide further guidance on what form to use.

In its decision, the judge ruled that the Department of Homeland Security unlawfully delayed enforcement of the rule, when it postponed the rule from going into effect just days before the rule was set to go into effect on July 17, 2017, without following the appropriate notice-and-comment procedure required by the Administrative Procedure Act.

Entrepreneurs must keep in mind that the the Trump administration may appeal the federal judge’s decision, or continue with their plans to rescind the rule, but as it now stands the government must accept applications for the international entrepreneur rule, even if the administration continues with their plans to rescind the rule.

What is the IER?

The rule makes it easier for eligible start-up entrepreneurs to obtain temporary permission to enter the United States for a period of 30 months, or 2.5 years, through a process known as “parole,” for the purpose of starting or scaling their start-up business enterprise in the United States. The decision about whether to “parole” a foreign entrepreneur under this rule will be a discretionary determination made by the Secretary of Homeland Security on a case-by-case basis (INA Section 212(d)(5), 8 U.S.C. 1182(d)(5)).

“Parole” will be granted to eligible entrepreneurs who can demonstrate that their company’s business operations are of significant public benefit to the United States by providing evidence of substantial and demonstrated potential for rapid business growth and job creation. Such demonstrated potential for rapid growth and job creation may be evidenced by: (1) significant capital investment from U.S. investors with established records of successful investments or (2) attainment of significant awards or grants from certain Federal, State, or local government entities.

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In this podcast, attorney Jacob J. Sapochnick discusses the all new International Entrepreneur rule. To hear more about this exciting new rule for entrepreneurs, please click below.

Overview: 

What is it?

The International Entrepreneur Rule will allow certain entrepreneurs the opportunity to seek ‘parole’ into the United States, based on his or her role in the startup company, provided the company can demonstrate substantial potential for rapid growth and job creation in the United States. Not all entrepreneurs will be eligible. Qualifying entrepreneurs must demonstrate that their entry would create a significant public benefit in the United States, and provide ‘substantial’ and ‘demonstrated potential’ to create more jobs and business growth in the United States, and not merely provide income to the entrepreneur and his or her family members.

What are the requirements?

Entrepreneurs must demonstrate:

  • At least a 15 percent ownership interest in their startup enterprise;
  • That they take on an active and central role in the startup enterprise’s operations;
  • That the startup enterprise has been formed in the United States within the past three years; and
  • That the startup enterprise has proven to yield a substantial and demonstrated potential for rapid business growth and job creation as evidenced by:
  1. Having received a significant investment of capital of at least $345,000 from certain qualified U.S. investors that have a proven track record of success i.e. showing established records of successful investments;
  2. Having received significant awards or grants of at least $100,000 from federal, state, or local government entities; or
  3. By partially satisfying one or both of the above criteria, in addition to presenting other reliable and compelling evidence to show the startup entity’s substantial potential for rapid growth and job creation in the United States.

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