While the EB-5 visa has proven popular with a number of Israeli investors who have obtained a green card using the EB-5 program, options U.S. immigration visas for Israeli entrepreneurs who do not qualify for the EB-5 visa remain limited. The following post, originally published on the Inside Business Immigration blog and written by Matthew Virkstis, a Practice Group Attorney in Greenberg Traurig’s Business Immigration & Compliance Practice, sheds light on a propose USCIS rule which may, when finalized broaden the options for such individuals.
On Aug. 26, 2016, U.S. Citizenship and Immigration Services (USCIS) announced a notice of proposed rulemaking for an International Entrepreneur Rule, and provided an advance version of the proposed rule for public review.
According to an announcement from USCIS, the proposed rule will allow the Department of Homeland Security (DHS) to exercise discretion, on a case-by-case basis, to provide parole for foreign entrepreneurs who are directing the development of a startup business entity in the United States and whose involvement in the startup would provide a significant public benefit. USCIS proposes to amend its regulations in connection with Section 212(d)(5) of the INA to provide a “transparent framework” for the exercise of agency discretion and the case-by-case adjudication of parole requests for start-up entrepreneurs.
In order to be considered for parole under the proposed rule, an immigrant entrepreneur would be required to:
- Own at least 15 percent of the startup and be actively involved in its operation
- Have formed the business in the United States within the previous three years.
The entrepreneur must also demonstrate that his or her business the potential for job creation and growth by showing:
- Investment of a minimum of $345,000 from qualified U.S. investors with success in prior investments
- The receipt of grants or awards from federal, state, or local government entities.
The proposed rule also provides flexibility for an entrepreneur who may only partially satisfy one or both of the above criteria, by permitting the entrepreneur to provide evidence of the start-up’s potential for growth and job creation.
Under the proposed rule, a qualifying entrepreneur may receive parole for a two-year period, and may be eligible for renewal based upon the success of the start-up.
When finalized, the proposed rule may hold potential for Israeli nationals who find themselves caught in current U.S. immigrant visa backlogs, or with limited immigrant visa options, given the close of the 2016 H1-B lottery and the still-pending reciprocal Israeli E-2 visa legislation. Further analysis of the proposed rule may also illuminate potential opportunities for Israeli EB-5 investors who are awaiting the availability of a visa number.
Upon publication of the rule in the Federal Register, the public will have 45 days during which to provide comment on the rule.
As we review the text of the proposed rule thoroughly, we will provide additional insights and discussion about the potential opportunities it could present to immigrants in different contexts.