In this segment Attorney Jacob J. Sapochnick Esq. discusses a new proposed rule referred to as the International Entrepreneur Rule. This new rule is expected to make it easier for certain foreign entrepreneurs to receive temporary permission to enter the United States, also known as ‘parole,’ for the purpose of starting or scaling their start-up business enterprise in the United States. For more information please keep watching.
Under this new rule, DHS would have discretionary authority to grant parole to eligible entrepreneurs of start-up companies who can demonstrate the following:
- At least a 15 percent ownership interest in the startup enterprise in question;
- 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:
- 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;
- Having received significant awards or grants of at least $100,000 from federal, state, or local government entities; or
- 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.
Under the International Entrepreneur Rule, entrepreneurs are eligible to receive an initial stay of up to two-years to oversee and grow their startup enterprise in the United States. To receive an extension, the entrepreneur must submit a re-parole request to receive three additional years of parole. A re-parole request would only be granted if the entrepreneur can demonstrate that the start up enterprise would continue to provide a significant public benefit to the United States, as demonstrated by increases in either capital investment in the start-up, revenue, or job creation. The proposed rule will not become effective until the final rule is published in the Federal Register within approximately 45 days.