The International Entrepreneur Rule was passed at the end of President Obama’s term in office.
The objective of the rule was to provide temporary parole, through which foreign nationals with secured venture capital funding, could enter the US for a period of up to 5 years, for the purpose of setting up and growing their businesses.
It was anticipated that approximately 3,000 entrepreneurs per year would apply for parole to enter the US under the International Entrepreneur Rule, facilitating economic growth, generating employment opportunities in the US and yielding some much needed economic prosperity.
What Is The Current Position In Relation To The International Entrepreneur Rule?
Sadly, despite the celebration, excitement and optimism which surrounded the passing of the rule under the Obama Presidency, progress in connection with the International Entrepreneur Rule was slow.
The intended implementation date of the Rule was postponed twice, on the second occasion, with a view to reviewing and potentially eliminating the program altogether. In December 2017, a Federal Court ruled that the US Citizenship and Immigration Services (USCIS) must begin accepting applications for temporary parole under the International Entrepreneur Rule, following a legal challenge by venture capitalists.
Perhaps unsurprisingly given the uncertainty surrounding the future of the program, by April 2018, only 10 applications had been filed under the International Entrepreneur Rule.
On May 25, 2018, the Department of Homeland Security announced proposals to abolish the International Entrepreneur Rule altogether, on the basis that it believes the rule represents an overly broad interpretation of parole authority, it lacks sufficient protections for U.S. workers and investors and is not the appropriate vehicle for attracting and retaining international entrepreneurs.
Why Is Abolition Of The Rule Undesirable?
In our view, the logic underlying the decision to abolish the International Entrepreneur Rule is flawed. The reality is, foreign investment in the US economy has been, and remains, a major economic stimulus.
According to statistics published by the Ewing Marion Kauffman Foundation, immigrants account for 30% of entrepreneurs in the US. Indeed, immigrants were responsible for founding global technology giants Intel Corp, Google and Tesla Inc, which have generated billions of dollars in sales revenue and generated a wealth of employment opportunities in the US, boosting economic growth. Sadly, it seems the abolition of the International Entrepreneur Rule represents something of a missed opportunity.
Davies Legal Immigration
At Davies Legal Immigration, we offer a “one stop shop” for all aspects of US business immigration. Our team comprises US immigration attorneys, a Master of Business Administration, a Doctor of Business and a Certified Public Accountant. We offer a variety of fixed fee packages tailored to your unique position and offer innovative immigration solutions. Call now to discuss your case with a licensed US immigration attorney and take the first steps towards achieving your own American Dream.
