The worlds of immigration law and international business are buzzing over the Obama administration’s recently proposed “Startup Rule”, which was designed to give foreign-born business owners a new option to stay and expand their business ventures in the U.S. The International Entrepreneur Rule does not require Congressional authorization and will go into effect following a 45-day comment period!!! So it’s just a matter of time…
Providing an easier path for immigrant entrepreneurs is great news for the U.S. job market as well as the economy. A study by the National Foundation for American Policy recently found over half of American tech startups valued at one billion dollars or more had one or more immigrant founders. These billion dollar companies collectively created tens of thousands of jobs in the U.S. [1]
Immigration officials will evaluate and admit entrepreneurs on a case-by-case basis, greenlighting visas for those whose startups deliver a “significant public benefit” via growth and its accompanying job creation. There is no specific annual quota, which is great news for countries that have exhausted their EB-5 quotas (see below).
Applicants must demonstrate that they qualify for the initial two-year “parole” by meeting the following requirements:
- have at least a 15% ownership stake in a startup;
- play a “central and active role” in the operations of said entity, “such that his or her knowledge, skills, or experience will substantially assist the entity with the growth and success of its business”; and
- raised either $345,000 from private investors OR $100,000 from federal, state, or local government entities.
Successful applicants can then extend their stay for an additional 3 years (for a maximum of 5 years) provided that their business has shown signs of significant growth since the initial application and continues to show “substantial potential for rapid growth and job creation.” To satisfy these criteria for extension, founders must:
- continue running their businesses in the US
- retain at least a 10% ownership stake in said entity
- demonstrate the startup’s “continued potential for rapid growth and job creation” by doing one of the following: raise an additional $500,000 from US investors, generate $500,000 in annual revenue with an average annualized revenue growth rate of 20%, or prove they’ve created at least 10 full-time jobs over those five years
We at e-Council Inc.com and all of our strategic partners and clients are very excited about this development. The International Entrepreneur Rule represents a huge opportunity for foreign nationals, particularly those from non-Treaty countries (i.e. do not qualify for E-2 visas, which qualification is dependent on the applicant being from a country with which the U.S. has a Treaty of Trade and Commerce – BRIC and many other countries do not have such Treaties, to name a few), who otherwise have limited options for U.S. investment that leads to a visa. It’s also great for foreign nationals for whom the EB-5 isn’t feasible, and for Chinese investors that not only don’t qualify for E-2 visas, but whose EB-5 visa numbers are on hold (the quota has been met).
This new Rule opens a brand new door, without quotas or restrictions! Want to find out more about how you might benefit from this opportunity? Give us a call at 866-724-0085. To inquire about our immigration concierge and quarterbacking services or to choose from a wide range of complementary visa offerings, please contact us at info@ecouncilinc.com.
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[1] National Foundation for American Policy study