DHS delays implementation of International Entrepreneur Rule, may ultimately rescind it

Last month the Department of Homeland Security ("DHS") announced by publication in the Federal Register that it would delay implementation of the "International Entrepreneur Rule," a new regulation, promulgated under President Obama's tenure in office, that provided immigration opportunities for a small number of international entrepreneurs who could show that they would provide a significant public benefit to the United States in the form of economic growth and the creation of U.S. jobs.  The International Entrepreneur Rule empowered the Secretary of DHS to grant discretionary parole authority to foreign national entrepreneurs who met certain criteria in order to increase and enhance entrepreneurship, innovation, and job creation in the United States.

This rule was set to take effect on July 17, 2017 but DHS published a final rule with delaying the effective date and requesting comments on July 11, 2017. By this action, DHS has now delayed implementation of the International Entrepreneur Rule until March 14, 2018.  DHS has opened the matter for an extremely brief public comment period and could potentially rescind the program entirely. If you would like to make your opinion on this new rule heard, please ensure you submit a comment through the Federal Register's e-Rulemaking portal or by mail by August 10, 2017. 

DHS publishes new International Entrepreneur Rule

On January 17, 2017, the Department of Homeland Security ("DHS") published a final rule in the Federal Register concerning regulations to implement new International Entrepreneur parole authority. DHS lists increasing and enhancing entrepreneurship, innovation and job creation as its goals for this new rule which is scheduled to become effective on July 17, 2017. The rule provides guidance for the use of parole - on a case-by-case basis - for entrepreneurs of start-ups who can demonstrate they would provide significant public benefit to the U.S. through evidence of "substantial and demonstrated potential for rapid business growth and job creation." Among the criteria adjudicators would consider are receipt of capital investment from U.S. investors with established records of successful investments and obtaining significant awards from certain Federal, State or local government entities. A foreign national who receives a grant of parole under this new rule would be permitted an initial stay of up to 30 months in the U.S., with the possibility of an additional 30 month extension to facilitate the applicant's ability to oversee and grow her or his start-up in the U.S.

We expect to bring you a detailed summary of this new rule in our February newsletter.

Proposed rule would allow entrepreneurs temporary entry into the U.S.

On August 26, 2016, the Department of Homeland Security ("DHS") announced new proposed regulations to increase and enhance entrepreneurship, innovation, and job creation in the United States. DHS's proposed rule would add new regulatory provisions permitting the use of parole/temporary stay on a case-by-case basis with respect to entrepreneurs of start-up entities whose entry into the U.S. would provide a significant public benefit through the substantial and demonstrated potential for rapid business growth and job creation. The regulations describe several metrics for assessing this potential, including the receipt of significant capital investment from U.S. investors with established records of successful investments or obtaining significant awards or grants from certain federal, state or local government entities. 
 
If granted, parole would provide the entrepreneur a temporary, initial stay of up to 2 years, with the possibility of being extended by up to an additional 3 years, in order to facilitate the entrepreneur's ability to oversee and grow her or his start-up entity in the U.S. DHS would consider subsequent requests for re-parole only when the entrepreneur can demonstrate the start-up entity continues to provide a significant public benefit as evidenced by substantial increases in capital investment, revenue, or job creation.

DHS published its notice of proposed rulemaking in the Federal Register, inviting public comment for 45 days - until October 10, 2016. Once the comment period closes, the agency will review comments received and consider changes to the proposed regulations, publishing a final rule in the Federal Register at a later date. You may submit comments on the proposed rule by e-mail at uscisfrcomment@dhs.gov with DHS docket number USCIS-2015-0006 in the subject line of the message. Iandoli Desai & Cronin P.C. will continue to bring you updates on this new proposed rule in our newsletter and on our website at www.iandoli.com/newsandupdates.