DHS Issues Final Rule With Foreign Entrepreneur Parole Authority | Practical Law

DHS Issues Final Rule With Foreign Entrepreneur Parole Authority | Practical Law

The US Department of Homeland Security (DHS) has issued the International Entrepreneur Final Rule, establishing regulatory criteria for its discretionary parole authority to permit foreign entrepreneurs to enter the US to manage their start-up entities.

DHS Issues Final Rule With Foreign Entrepreneur Parole Authority

Practical Law Legal Update w-005-4642 (Approx. 4 pages)

DHS Issues Final Rule With Foreign Entrepreneur Parole Authority

by Practical Law Labor & Employment
Law stated as of 20 Jan 2017 • USA (National/Federal)
The US Department of Homeland Security (DHS) has issued the International Entrepreneur Final Rule, establishing regulatory criteria for its discretionary parole authority to permit foreign entrepreneurs to enter the US to manage their start-up entities.
On January 17, 2017, the US Department of Homeland Security (DHS) issued the International Entrepreneur Final Rule, establishing regulatory criteria for its discretionary parole authority to permit foreign entrepreneurs to enter the US to manage their start-up entities. The final rule becomes effective on July 17, 2017.
The rule amends current DHS regulations, adding new provisions to guide the discretionary use of parole on a case-by-case basis (8 C.F.R. § 212.19). By creating parole parameters for this population, DHS aims to enhance US:
  • Entrepreneurship.
  • Innovation.
  • Job creation.
Those seeking parole must show that they would provide significant public benefit to the US through evidence of substantial and demonstrated potential for rapid business growth and job creation. The entrepreneur can indicate this potential by showing receipt of either:
  • Capital investment (generally $250,000 or more) from US investors with established successful investment records.
  • Significant awards or grants from federal, state, or local government entities.
The entity must be a start-up entity, formed within five years before the parole request.
An applicant must show that he:
  • Has substantial ownership interest in the entity of at least 10%.
  • Has an active role in operating the entity.
  • Would substantially further the entity's ability to:
    • engage in research or development; or
    • otherwise conduct and grow the business in the US.
In addition, the final rule provides alternate criteria for entrepreneur applicants who only partially meet the investment and award thresholds but can show other compelling evidence of potential for their entities' rapid growth and job creation.
Any entrepreneur who is granted parole will be allowed to stay in the US temporarily for up to 30 months to oversee the growth of his start-up entity. This parole may be extended up to an additional 30 months in certain situations. (8 C.F.R. § 212.19(d)(2), (3).)