In an effort to promote investment by international entrepreneurs in the U.S. economy, President Obama is rolling out his latest regulatory initiative. Faced with stalemate in the Congress, the President is again using “executive action” to introduce rules – but not new laws – designed to help entrepreneurs launch new businesses in the U.S.
The new measure, called the International Entrepreneur Rule, would allow the U.S. Department of Homeland Security (“DHS”) to offer temporary stay in the form of a “parole” to international investors who partner with American investors to create new businesses. To qualify, international entrepreneurs must have at least 15% ownership of their company, have an active and central role in the company’s operations and have raised at least $345,000 from qualified U.S. investors or at least $100,000 from federal, state, or local government agencies. Under the proposed rule, a qualified international entrepreneur would be granted a two-year period of stay, with the option to renew their status for an additional three years. DHS projects that about 3,000 immigrants would apply for this temporary stay.
The proposed rule draws on the existing statutory authority of the executive branch to “parole” designated aliens into the U.S. for temporary periods for humanitarian reasons or where there is “significant public benefit.” In its preamble to the proposed rule, DHS explains that the use of parole for international entrepreneurs would provide significant public benefit through the creation of new jobs and businesses in the U.S. Barring unforeseen circumstances, the rule will take effect before President Obama leaves office on January 20, 2017.