The Department of Homeland Security (DHS) has issued a proposed regulation to increase entrepreneurship, innovation, and job creation in the United States. The proposed rule would allow the use of parole on a case-by-case basis for entrepreneurs of start-up companies whose entry into the United States would provide a significant public benefit through the potential for rapid business growth and job creation. Favorable factors would include the receipt of significant capital investment from U.S. investors with established records of successful investments of at least $345,000, or obtaining significant awards or grants of $100,000 or more from certain Federal, State or local government agencies. If the entrepreneur lacks government financing or capital investment from US investors, he or she could provide other evidence of their start-up company’s significant potential for rapid growth and job creation. The applicant would have to show that he or she has a substantial ownership interest in the business of at least 15%, has the skills, knowledge and experience to run a business, and would substantially further the company’s ability to do research and development, or to conduct and grow the business in the U.S. The company must have been newly formed within three years prior to the application for parole. The grant of parole provides the applicant with the opportunity to oversee and grow the start-up entity:
“DHS believes that this proposal would encourage foreign entrepreneurs to create and develop start-up entities with high growth potential in the United States, which are expected to facilitate research and development in the country, create jobs for U.S. workers, and otherwise benefit the U.S. economy through increased business activity, innovation and dynamism.”
This parole to entrepreneurs would provide a temporary stay of up to two years, which could be extended for another three years. For an extension, the entrepreneur would have to show substantial increases in capital investment, revenue, or job creation by their company. It is not clear whether people who have been living in the U.S. out-of-status would be eligible.
Please note, this is only a proposed rule, and is not yet in effect. Thus, no one can currently apply for parole for entrepreneurs. The Obama administration hopes to finalize the rule before the end of 2016.