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DHS Issues New Entrepreneur Parole Rule

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The much awaited DHS rule granting parole status to foreign-born investors and family members who establish start-up companies (“start-ups”) in the U.S. went into effect today.

What the Rule Does:

  • The rule allows entrepreneurs to obtain parole status for 30 months and also allows for a possible 30-month extension to give entrepreneurs time to oversee their startups.

Who Qualifies?

  • Newcomers and investors who have formed start-ups in the past 5 years as long as the investor plays a central and active role in the company;
  • Spouses and children of each entrepreneur;
  • Entrepreneurs owning at least 10% of the start-up;
  • Entrepreneurs showing start-up has potential for rapid growth and job creation by having a qualified US investor who has:
  1. Invested at least $250K in the start-up; or
  2. Received government awards or grants of at least $100K; or
  3. Partially complied with a) or b) and has presented “compelling evidence” showing the start-up would bring a “significant public benefit” to the US. The entity must show “substantial potential for rapid growth and job creation”.
  • Investor who has invested $600K+ in start-ups in the past 5 years. At least 2 of these start-ups must have:
  1. Created at least 5 qualified jobs; or
  2. Generated $500K+ in revenue with an average growth rate of 20% or more annually.

Limitations:

  • Only 3 entrepreneurs can qualify for parole for each start-up.

What is required for a 30-Month Extension?

  1. The start- up(s) must have received at least $500K in qualifying investments from established US investors, government grants or awards since the entrepreneur was paroled; or
  2. At least 5 jobs must have been created by the start-up during the same time period; or
  3. The start-up’s annual revenue must be $500K or more and its annual growth at least 20%; and
  4. The entrepreneur’s ownership in the start-up must be at least 5%.
  5. In addition, the entrepreneur must demonstrate that his/her income is at least 400% of the federal poverty guidelines.
  6. A parole only partially meeting the above requirements may receive an extension by submitting additional reliable and compelling evidence

Other Perks:

  • Spouses may apply for EAD work permits on the basis of their parole status

Fees:

  • Filing fee will be $1,200.

To view the final rule, please go to: https://www.federalregister.gov/documents/2017/01/17/2017-00481/international-entrepreneur-rule

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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