The New Entrepreneur Parole Rule for start up's

Good News the new rule coming soon will grant parole status to foreign-born investors and family members who establish start-up companies in the U.S..

The new rule will allow entrepreneurs to obtain parole status for 30 months plus a possible 30-month extension in order to oversee and grow their start-ups in the US. Parole status will be available to persons whose start-up companies were formed during the past 5 years as long as the investor plays a central and active role in the company. There is a limit of 3 entrepreneurs who can qualify for parole for each start-up company.

Spouses and children of each entrepreneur will also be eligible for a 30-month parole. Spouses may apply for EAD work permits.

How Much Money Must be Invested?

The entrepreneur must own at least 10% of the start-up. He must show that the start-up has a potential for rapid growth and job creation by having a qualified US investor who has:

1. Invested at least $250K in the start-up; or

2. Received government awards or grants of at least $100K; or

3. Partial compliance with #1 or #2 above and presentation of “compelling evidence” to show that the start-up would provide a "significant public benefit" to the US. The entity must show "substantial potential for rapid growth and job creation".

The qualified investor must have invested $600K+ in start-ups in the past 5 years. At least 2 of these start-ups must have:

1. Created at least 5 qualified jobs; or
2. Generated $500K+ in revenue with an average growth rate of 20% or more annually.

What is Required for a 30-Month Extension?

1. The start-up must have receive at least $500K in qualifying investments from established US investors, government grants or awards since the entrepreneur was paroled; or
2. At least 5 jobs were created by the start-up during the same time period; or
3. The start-up’s annual revenue must be $500K or more and its annual growth at least 20%; and
4. The entrepreneur’s ownership in the start-up must be at least 5%.
5. In addition, the entrepreneur must demonstrate that his income is at least 400% of the federal poverty guidelines.
6. A parole only partially meeting the above requirements may receive an extension by submitting additional reliable and compelling evidence.