Though they have long been overlooked by policy makers, immigrant entrepreneurs have made and continue to make a deep impact on the U.S. economy. Numerous studies have reported the job creation, innovation, and financial growth that have resulted from startups founded and run by immigrants. The National Foundation for American Policy released a report in 2016 that found immigrants have created 44 of 87 of America’s privately-held startups valued at or above $1 billion. Immigrants are also key leaders at more than 70 percent of these companies. The study concluded that immigrant entrepreneurs are responsible for the creation of an average of 760 jobs per company in the U.S.

Even with the writing on the wall in terms of the economic benefits of welcoming immigrant entrepreneurs, immigration reform continues to be a highly-debated and charged issue. A clear option for foreign-born entrepreneurs to obtain visas has yet to emerge. Research from the Kauffman Foundation “using data on employer firm creation and survival plus U.S. Census Bureau statistics on job creation” found that  a startup visa option could create nearly 900,000 jobs after 10 years, based on average U.S. companies. Still, legislators have failed to pass significant reform or introduce laws tailored to enabling residency for immigrant startup founders.

Recognizing this gap in policy, in 2016, President Obama created the International Entrepreneur Rule (IER). As part of my ongoing advocacy for immigrants, I worked closely with the WTIA to comment on the rule’s drafting and offer suggestions to the White House for its development. Several of our suggestions were ultimately adopted in the final rules. Despite a lengthy approval process, and an eventual delay of the its activation by the Trump administration, the rule was ordered into effect in December 2017. Finally, immigrant entrepreneurs were given an opportunity to apply for temporary admission into the U.S. under a rule that is the closest policy we’ve seen to date for a startup visa.

Under the IER, entrepreneurs may be granted “parole” to work for their start-up business alone; and their spouses and children may also receive temporary admission. IER parole may be granted for up to three entrepreneurs per start-up entity. The U.S. Citizenship and Immigration Services (USCIS), a branch of the Department of Homeland Security, is currently accepting applications, albeit reluctantly. The Trump administration has been vocal on this issue, indicating that a revocation of the IER is impending. This means that entrepreneurs that are interested in applying for the IER should act swiftly, as this opportunity is not likely to last very long.

Even if the rule is withdrawn as expected, applicants who filed during the open window will have the legal right for their applications to be seen through and approved if they meet the requirements. Organizations such as the National Venture Capital Association, and various immigration lawyers will most certainly file suits against the government if they attempt to shut down approval for any applications submitted during the time the IER was valid.

Understanding the extensive eligibility requirements is an important first step for anyone considering applying for IER parole. Because this issue is so new, and we haven’t yet seen precedents set for it, it is critical for applicants to review the regulations very carefully and demonstrate fulfillment of the requirements as squarely as possible. Detailed information about the startup’s investor must be provided on the application, and is a key element in showing credibility and demonstrating to the government that the foundations for qualification have been met. Eligibility criteria in the rule includes:

• The entrepreneur possesses at least 10 percent ownership interest and a central and active role in a start-up entity created within the past five years in the United States that has substantial potential for rapid growth, job creation and/or significant public benefit. Documentation of public benefit may include, but is not limited to:
  • Evidence of investments from any investors, government awards, or grants.
  • Evidence of revenue generation.
  • Letters from government agencies, qualified investors, or established business associations attesting to how the start-up’s research, products, or services, or the entrepreneur’s knowledge, skills or experience will advance the start-up’s business.
  • Media coverage of the start-up.
  • Evidence of participation in a reputable start-up accelerator.
  • Patent awards.
• The entrepreneur’s knowledge, skills, or experience will substantially assist with the growth and success of the start-up.
• The start-up received substantial capital investment or awards as follows:
  • Within the last 18 months, received an aggregate of $100,000 in government grants or $250,000 from qualified investors.
  • A government grant must be from a U.S. federal, state, or local entity. The grant must be for economic development, research and development, job creation or another similar monetary award directed at start-ups. The grant may not be part of a contract for goods or services, and must come from an entity or agency with a track record of granting funds to start-ups.
  • A qualified investor must have a significant track record of successful investments in other start-ups ($600,000 in the last five years). Those investments must have resulted in two start-ups creating five full-time qualified jobs each, not including independent contractors (each qualified job must have been paid and filled for at least one year by a U.S. citizen, lawful permanent resident, or other work authorized immigrant), or $500,000 revenue with an average of 20 percent annualized revenue growth in at least two start-up entities.
  • The investor must also be an individual holding U.S. citizenship or lawful permanent residence, or be an entity majority owned and controlled, directly or indirectly, by U.S. citizens or lawful permanent residents.
• If the funding criteria is only partially met, the entrepreneur may provide compelling evidence that the entity has substantial potential for rapid growth and job creation.

Applicants should keep in mind that while this is not a visa, it is the only current immigration rule that specifically targets startup founders. The timeline for processing applications is unknown, so founders may be left waiting for an uncertain amount of time before their applications are approved. Also of note is the $1,200 application fee and the fact that approved applicants are required to travel abroad to a U.S. consulate to obtain travel documentation before appearing at a U.S. port of entry for their final parole determination.

Startup founders have historically faced visa challenges, but still they are thriving. Inc. recently reported, “From 1996 to 2011, the business startup rate of immigrants increased by more than 50 percent, while the native-born startup rate declined by 10 percent, to a 30-year low. Immigrants today are more than twice as likely to start a business as native-born citizens.” An option like the IER has never before existed, and it is essential for startup founders whose companies are facing failure if they can’t remain in the U.S.

International entrepreneurship is fundamental for our economy, and founders must seize this opportunity, in order to continue stimulating growth and innovation in the U.S., joining the likes of Elon Musk, Vinod Khosla, Max Levchin and other immigrant visionaries.