International Entrepreneur Parole Program Provides Immigration Opportunity for Foreign Entrepreneurs
The Department of Homeland Security has withdrawn a planned regulation that would have eliminated the International Entrepreneur Parole program for foreign entrepreneurs. With this withdrawal, applications for International Entrepreneur Parole can continue to be submitted to USCIS. Foreign entrepreneurs may obtain permission to live and work in the United States for a start-up business if certain investment criteria are met. Dependent family members may also receive Advance Parole to live in the United States. The spouse of the entrepreneur is also eligible for employment authorization under the program.
Eligibility Requirements:
Entrepreneurs applying for parole under this rule must demonstrate that they:
- Possess a substantial ownership interest in a start-up entity created within the past five years in the United States that has substantial potential for rapid growth and job creation.
- Have a central and active role in the start-up entity such that they are well-positioned to substantially assist with the growth and success of the business.
- Will provide a significant public benefit to the United States based on their role as an entrepreneur of the start-up entity by showing that:
The start-up entity has received a significant investment of capital from certain qualified U.S. investors with established records of successful investments;
The start-up entity has received significant awards or grants for economic development, research and development, or job creation (or other types of grants or awards typically given to start-up entities) from federal, state, or local government entities that regularly provide such awards or grants to start-up entities; or
They partially meet either or both of the previous two requirements and provide additional reliable and compelling evidence of the start-up entity’s substantial potential for rapid growth and job creation. - Otherwise merit a favorable exercise of discretion.
How to Apply:
The Entrepreneur must file Form I-941 with USCIS along with a filing fee of $1,200 and a biometric services fee of $85. The spouse and children of the entrepreneur must file Form I-131 with USCIS along with a filing fee of $575 and a biometric services fee of $85.
Upon approval of the I-941 and I-131, the family may travel to the United States. The Entrepreneur may then begin work for the start-up business. The entrepreneur’s spouse, upon arrival to the U.S. must file an I-765 application for Employment Authorization and receive an approved EAD card before he or she can begin work in the United States. The spouse with the EAD card may work for the start-up business or any other employer in the United States.
Types of Documents Required:
What documents do you need to provide to show that you have a central and active role in the start-up entity?
A. Letters from relevant government agencies, qualified investors, or established business associations with knowledge of the entity’s research, products or services and/or your knowledge, skills or experience that would
advance the entity’s business;
B. Newspaper articles or other similar evidence that you or your entity has received significant attention or recognition;
C. Evidence that you or your entity has been recently invited to participate in, is currently participating in, or has graduated from one or more established and reputable start-up accelerators;
D. Evidence that you have played an active and central role in the success of prior start-up entities;
E. Degrees or other documentation indicating that you have knowledge, skills, or experience that would significantly advance the entity’s business;
F. Documentation pertaining to intellectual property of the start-up entity, such as a patent, that was obtained by you or as a result of your efforts and expertise;
G. Position description of your role in the operations of the company; and
H. Any other reliable evidence indicating that you perform a central and active role in the start-up entity.
What documents do you need to provide to show your ownership stake in the start-up entity?
A. Organizational documents (such as articles of incorporation, bylaws, articles of organization, operating agreement, certificate of partnership, partnership agreement, etc.);
B. Equity purchase or grant agreements;
C. Equity ledger;
D. Equity certificates;
E. Ownership schedule; or
F. Capitalization table.
What documents do you need to provide to show that your company meets the definition of start-up entity?
A. Organizational documents (such as articles of incorporation, bylaws, articles of organization, operating agreement, certificate of partnership, partnership agreement, etc.);
B. Tax records;
C. Financial records; or
D. Other evidence establishing the company’s potential for rapid growth and job creation.
What documents do you need to provide to show that the investment funds you have received came from a qualified investor?
A. If the investor is an individual, you should submit a copy of a government-issued identity document showing the photograph, name, and date of birth of the investor, along with evidence showing that the investor is a U.S.
citizen or lawful permanent resident of the United States. The copy must clearly show the photo and identity information.
B. If the investor is an organization, such as a venture capital firm or other U.S. business investing in the start-up entity, you should submit evidence that the organization operates through a legal entity organized under the laws of the United States, such as its organizational documents (such as articles of incorporation, bylaws, articles of organization, operating agreement, certificate of partnership, partnership agreement, etc.), along with evidence showing that it is majority owned and controlled, directly and indirectly, by U.S. citizens or lawful permanent residents of the United States, such as an ownership structure chart outlining the direct and indirect ownership of the organization together with evidence that the individuals ultimately owning and controlling a majority of the organization are U.S. citizens or lawful permanent residents of the United States.
C. Evidence that the investor has, during the 5 years prior to the date of filing your application for parole based on an investment from such individual or organization:
(1) Made investments in other U.S. business entities in exchange for equity or convertible debt or other security convertible into equity commonly used in financing transactions within their respective industries comprising a
total in such 5-year period of no less than $600,000; and
(2) Subsequent to such investment by such individual or organization, at least 2 such entities each created at least 5 qualified jobs or generated at least $500,000 in revenue with average annualized revenue growth of at least 20%.
To satisfy the investment requirement, such evidence may include such records as: bank records, wire transfers, debt agreements, equity purchase agreements, equity certificates, equity ledgers, or capitalization table. To satisfy the job creation or revenue generation requirement, such evidence may include such records as: tax and/or payroll records, I-9 records, or audited financial statements.
What documents do you need to provide to show that the award or grant you have received is a qualified government award or grant?
To establish that the award or grant is for economic development, research and development, or job creation (or other similar monetary award typically given to start-up entities) made by a federal, state, or local government entity that regularly provides such awards or grants to start-up entities, you should submit such records as: copies of grant or award letters, other documentation from the government entity confirming the issuance of the award or grant including the amount of the award or grant as well as the recipient, and bank records confirming receipt of the award or grant.
What documents do you need to provide to show that your start-up entity received sufficient minimum investment or government funding?
Evidence that the start-up entity has received sufficient minimum investment to establish eligibility may include copies of the start-up entity’s bank records, accounting documents, and corporate ownership records. These records must clearly demonstrate the trail of lawfully derived capital from a qualified investor into your start-up entity. The records must demonstrate that the invested capital was used to purchase equity, convertible debt, or other security convertible into equity issued by your start-up entity. Evidence may also include documents showing receipt by the start-up entity of qualified award or grant from a U.S. government entity.
NOTE: A qualified investment shall not include an investment from you (the entrepreneur), your parents, spouse, brother, sister, son, or daughter; or from any corporation, limited liability company, partnership, or other entity in which you or your parents, spouse, brother, sister, son, or daughter directly or indirectly has any ownership stake.
What documents do you need to provide to show that the investment in your start-up entity came from a lawful source?
Evidence that the funds invested into the start-up entity came from a lawful source to establish eligibility may include such records as: copies of the investor’s bank records, tax records, employment history, wage records, or evidence of assets or property. These records must clearly demonstrate the trail of lawfully derived capital from a qualified investor into your start-up entity.
What additional documents could you provide to show that you will provide a significant public benefit to the United States?
A. Evidence of investments from any investors, government awards or grants, or revenue generation, such as bank records, wire transfers, equity purchase agreements, equity certificates, equity ledgers, or capitalization table;
B. Letters from relevant government agencies, qualified investors, or established business associations with knowledge of the entity’s research, products or services and/or your knowledge, skills or experience that would
advance your entity’s business;
C. Newspaper articles or other similar evidence that you or your entity has received significant attention or recognition;
D. Evidence that you or your entity have been recently invited to participate in, is currently participating in, or have graduated from one or more established and reputable start-up accelerators;
E. Patent awards or other documents indicating that you and/or your entity are focused on developing new technologies or cutting-edge research;
F. Evidence that you have played an active and central role in the success of prior start-up entities, such as letters from relevant government agencies, qualified investors, or established business associations with knowledge of your prior start-up entities;
G. Degrees or other documentation indicating that you have knowledge, skills, or experience that would significantly advance your entity’s business;
H. Tax and/or payroll records, I-9 records, or other documents indicating that your entity has created a significant number of qualified jobs prior to filing the request for parole; and
I. Any other reliable evidence indicating your entity’s potential for growth and/or your ability to advance your entity’s business in the United States.
NOTE: If this list of evidence does not apply to your entrepreneurial activities, you may submit any other evidence that a grant of parole will provide a significant public benefit to the United States based on your role as an
entrepreneur of a start-up entity
If you are interested in learning more about the International Entrepreneur Parole program or think that it may be an option for you, contact a Reddy Neumann Brown PC attorney.