The International Entrepreneur Rule was one of the last immigration reforms to come out of the Department of Homeland Security under the Obama administration.
In January, the department released its final international entrepreneur rule. It was published in the Federal Register on Jan. 17.
The Department of Homeland Security says the amended rule will encourage foreign entrepreneurs to set up business entities in the United States with “high growth potential.”
The rule will go into effect 180 days after publication. Within that time it could still be derailed by Congress or President Donald Trump.
Following the publication of the rule in August, the public and other responders were given 45 days to comment. Although Trump has taken a hard line on immigration, an article in Small Business Trends speculated that the new president may want to retain it.
The final rule contains some changes to the one we discussed earlier in a blog. The amendments are intended to make it easier for foreign investors to take advantage of the rule.
Changes in the Finalized International Entrepreneur Rule
- The minimum investment required from a qualifying investor is now $250,000. The original rule floated an amount of $345,000.
- The final rule contains relaxations on the requirements to be a “qualified Investor” under the rule.
- Under the final rule, a foreign entrepreneur must have an ownership interest of at least 10 percent for initial parole, and at least 5 percent to be eligible for a second period of re-parole. The proposed rule had set the minimums at 15 percent for initial parole and 10 percent for re-parole.
- The final rule relaxes the job and revenue creation requirements from initial indications in the proposed rule. The applicant must show the enterprise creates at least five full-time jobs in the first period of parole.
The final rule will make it easier for foreign entrepreneurs. However, there are still a considerable number of hurdles to be negotiated.
In contrast to the EB-5 Investor program which we detail here, those taking advantage of the International Entrepreneur Rule do not gain eligibility for a green card by taking part.
An experienced Austin immigration lawyer can help you to take advantage of this new program. Please call us at (512) 399-2311.