U.S. Growth Fueled by Immigrant Talent
America’s growth and success over the past two centuries has been fueled by the talent and work efforts of immigrants. It is no surprise that over 50% of company startups with market values of $1B or more were founded by immigrants. Recognizing their importance, President Obama issued an Executive Order, shortly before the end of his presidency, called the International Entrepreneur Rule, which granted a 30-month trial parole to immigrant entrepreneurs, who are a critical part of a rapid-job-creating start-up company. Its delay may have profound implications.
DHS delays rule implementation
This Executive Order was scheduled to go into effect on July 17, 2017. However, the Department of Homeland Security (DHS) has issued memoranda delaying this rule from going into effect until March 14, 2018. Their reasoning was that the rule needed to be delayed in order to ascertain how it will be affected by President Trump’s immigration Executive Order, issued earlier this year. Criticism of the delay has flooded into DHS from a variety of groups, including technology companies, VC (venture capital) groups, and immigration attorneys. Their contention is that delaying the rules associated with immigrant entrepreneurs’ entry into this country negatively impacts innovation and job creation.
Over 2,000 entrepreneurs in limbo
DHS estimates that nearly 3,000 entrepreneurs will be eligible each year, under the rule, once implemented. Entrepreneurs would have had to meet very specific requirements, including the following:
- A sizeable interest in a company that is considered to be both a start-up and has the potential to create a significant number of new jobs.
- A central and substantial role within the business, such that their role is critical in driving the success of the business.
- The start-up must have received significant, accredited investment, government grants or awards, or compelling evidence substantiating the start-ups ability to rapidly create a significant number of new jobs within the United States.
Those entrepreneurs, their spouses, and children, would have been eligible to come to the United States for a period of 30 months. Pending the entrepreneur’s ability to prove their ongoing involvement, and success in the business, they would have been eligible for an additional 30-month extension. However, because of the nearly nine month delay in implementation of the rule, over 2,000 immigrant entrepreneurs, who met the basic requirements of the rule, will now found themselves in limbo.
Top US companies run by immigrant entrepreneurs
Many US immigrants or children of immigrants have created many of today’s preeminent industry leaders. Notable names include Rishi Shah, co-founder of Outcome Health, Sergey Brin, co-founder of Google, and Elon Musk, CEO of Tesla.
What are affected immigrant entrepreneur’s options?
While the International Entrepreneur Rule has been delayed, and its future remains uncertain, there are still options for immigrating to the United States through an investment. The opportunities must be carefully evaluated to see if they meet your specific needs. D’Alessio Law Group specializes in immigration law. We are here to meet your needs. Contact us today at +1.310.909.3934.