International Entrepreneur Parole Final Rule

USCIS and the DHS published the International Entrepreneur Final Rule in the Federal Register on January 17, 2017, which allows the DHS to parole (grant temporary permission to be in the US) certain entrepreneurs of startup businesses (as defined) who can demonstrate that the grant of parole will provide a significant public benefit to the US based on the individual’s role in the entity.

How to Qualify for the Entrepreneur Parole

An individual generally can meet this criteria by showing that:

• The individual possesses substantial ownership in a startup entity, defined as one who has at least a 10% ownership interest in the startup at the time of the application (or 5% at the time of any re-parole application); and maintains at least 5% ownership interest during the parole period (or maintains some ownership interest during any re-parole period).
• The individual serves an active and central role in its operations.
• The startup entity received, within 18 months before filing the initial parole application a qualified investment (as defined by the Final Rule) of at least $250,000 from qualified investors (as defined by the Final Rule); or at least $100,000 through one or more qualified government grants or awards.

Alternatively, an individual who qualifies as an entrepreneur with a startup (as defined), but who only partially meets the financial criteria, may be entitled to parole by providing other reliable and compelling evidence of the startup’s substantial potential for rapid business growth and job creation. The DHS also may grant parole in its sole discretion on a case-by-case basis if it determines, based on a totality of the evidence, both that:

• Granting parole will provide a significant public benefit.
• The individual warrants a favorable exercise of discretion.

Validity Period of the Entrepreneur Parole

The initial parole period is for 30 months from the date of parole. The DHS may re-parole an entrepreneur for one additional 30-month period.

The Final Rule imposes conditions on parole and provides for termination of parole under certain circumstances. The investment requirement adjusts automatically every three years based on the Consumer Price Index.

The Final Rule is effective January 17, 2017.

Summary of the Final Entrepreneur Parole Rule Provisions

This final rule adds a new section 8 CFR 212.19 to provide guidance with respect to the use of parole for entrepreneurs of start-up entities based upon significant public benefit. An individual seeking to operate and grow his or her start-up entity in the United States would generally need to demonstrate the following to be considered for a discretionary grant of parole under this final rule:

Formation of New Start-Up Entity. The applicant has recently formed a new entity in the United States that has lawfully done business since its creation and has substantial potential for rapid growth and job creation. An entity may be considered recently formed if it was created within the 5 years immediately preceding the date of the filing of the initial parole application. See 8 CFR 219.12(a)(2), 8 CFR 103.2(a)(7).

Applicant is an Entrepreneur. The applicant is an entrepreneur of the start-up entity who is well-positioned to advance the entity’s business. An applicant may meet this standard by providing evidence that he or she: (1) Possesses a significant (at least 10 percent) ownership interest in the entity at the time of adjudication of the initial grant of parole; and (2) has an active and central role in the operations and future growth of the entity, such that his or her knowledge, skills, or experience would substantially assist the entity in conducting and growing its business in the United States. See final 8 CFR 212.19(a)(1). Such an applicant cannot be a mere investor.

Significant U.S. Capital Investment or Government Funding. The applicant can further validate, through reliable supporting evidence, the entity’s substantial potential for rapid growth and job creation. An applicant may be able to satisfy this criterion in one of several ways:

1. Investments from established U.S. investors. The applicant may show that the entity has received significant investment of capital from certain qualified U.S. investors with established records of successful investments. An applicant would generally be able to meet this standard by demonstrating that the start-up entity has received investments of capital totaling $250,000 or more from established 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.
2. Government grants. The applicant may show that the start-up entity has received significant awards or grants from Federal, State or local government entities with expertise in economic development, research and development, or job creation. An applicant would generally be able to meet this standard by demonstrating that the start-up entity has received monetary awards or grants totaling $100,000 or more from government entities that typically provide such funding to U.S. businesses for economic, research and development, or job creation purposes.
3. Alternative criteria. The final rule provides alternative criteria under which an applicant who partially meets one or more of the above criteria related to capital investment or government funding may be considered for parole under this rule if he or she provides additional reliable and compelling evidence that they would provide a significant public benefit to the United States. Such evidence must serve as a compelling validation of the entity’s substantial potential for rapid growth and job creation.

This final rule states that an applicant who meets the above criteria (and his or her spouse and minor, unmarried children, if any) generally may be considered under this rule for a discretionary grant of parole lasting up to 30 months (2.5 years) based on the significant public benefit that would be provided by the applicant’s (or family’s) parole into the United States. An applicant will be required to file a new application specifically tailored for entrepreneurs to demonstrate eligibility for parole based upon significant public benefit under this rule, along with applicable fees. Applicants will also be required to appear for collection of biometric information. No more than three entrepreneurs may receive parole with respect to any one qualifying start-up entity.