Federal Judge Vacates Blocking Attempt for International Entrepreneur Rule

Federal District Judge James E. Boasberg has vacated an attempt by the Trump administration to delay a rule that would allow qualifying foreign entrepreneurs to obtain immigration parole, as of December 1st, 2017.

What is the International Entrepreneur Rule?

The rule was created by the Obama administration to encourage foreign entrepreneurs to create and develop high growth potential start up companies in the United States to stimulate the U.S. economy. It was set to take effect July 17, 2017 but the Department of Homeland Security issued the “Delay Rule” which was set to delay it until March 14th, 2018.
Since the executive branch of the government is not allowed to create an entirely new visa category, the temporary solution created for entrepreneurs was the parole program that the International Entrepreneur Rule was built upon. The parole doesn’t count as an official entry to the U.S. but allows the qualifying foreign entrepreneur to be physically present in the U.S. for up to 30 months.

How does one qualify for the International Entrepreneur Rule?

1. The applicant must have formed a new start-up entity in the United States within 5 years of the application;
2. The applicant must (a) possess at least a 10% ownership interest in the business; and (b) “have an active and central role” in its operations and future growth; and
3. The applicant must validate the business’s potential “for rapid growth and job creation” by showing (a) it has received at least $250,000 from established U.S. investors; or (b) it has received at least $100,000 in grants from government entities.

Why was the delay vacated?

The Delay Rule was vacated because it was decided to be designed to prevent the International Entrepreneur Rule from taking effect. It was decided that the reasons to uphold the delay were unpersuasive and the the economic benefit just in terms of applications and filing fees would generate over $3.5 million. Since the delay rule was concluded to have no firm ground to stand on the Trump administration ruling was vacated.