Introduction

A proposed rule providing parole for entrepreneurs recently

reached the Office of Management and Budget for review. The rule

comes as a response to several of the initiatives in President

Barack Obama's executive order of November 20 2014. The

executive order to modernize and streamline the US immigration

system for the 21st century sought to address how the United States

can continue to attract immigrants to foster innovation and

entrepreneurship, in order to grow the US economy and create jobs

for US citizens.

Government research from the White House indicates that

immigrants are extremely entrepreneurial, founding businesses that

create jobs for millions of US citizens. In particular:

“One report noted that 25 percent of companies backed

by venture capital between 1991 and 2006 were started by

immigrants. Another study reported that immigrants started a

quarter of engineering and technology companies founded between

1995 and 2005. In May 2012, the Small Business Administration's

(SBA) Office of Advocacy released a research study which found that

immigrants have high business formation rates and create successful

businesses that hire immigrant and U.S. citizen employees, and

export goods and services.”1

Because of these significant findings, the executive action is

indispensable to ensure that entrepreneurs continue to be

innovative contributors to the United States.

Parole Program

To move forward with the executive order pertaining to

entrepreneurship, the government indicated that the Department of

Homeland Security will propose – consistent with its existing

parole authority – a parole programme for entrepreneurs who

would provide a 'significant public benefit'.

The proposed Significant Public Benefit Parole for Entrepreneurs

rule reached the Office of Management and Budget for review on

August 1 2016. The office assists the president in fulfilling his

vision across the executive branch. It reports directly to the

president and supports numerous agencies and departments across the

federal government to “implement the commitments and

priorities of the President”.2 For this rule,

the Office of Management and Budget will “coordinate and

review all significant Federal regulations by executive agencies,

to reflect Presidential priorities and to ensure that economic and

other impacts are assessed as part of regulatory

decision-making”.

While the full text of the proposed rule is not yet public, the

website summary indicates that:

“The Department of Homeland Security (DHS) is proposing

to establish a program that would allow for consideration of parole

into the United States, on a case-by-case basis, of certain

inventors, researchers, and entrepreneurs who will establish a U.S.

start-up entity, and who have been awarded substantial U.S.

investor financing or otherwise hold the promise of innovation and

job creation through the development of new technologies or the

pursuit of cutting edge research. Based on investment,

job-creation, and other factors, the entrepreneur may be eligible

for temporary parole.”3

At present, Congress gives the attorney general the power to

parole into the United States any foreign national applying for

admission based on recommendations, including for a significant

public benefit.4 Parole of a foreign national for a

significant public benefit is not regarded as an admission of the

foreign national. When the purposes of the parole, in the opinion

of the attorney general, have been served, the foreign national

should return to his or her home country and his or her case will

continue to be dealt with in the same manner as that of any other

applicant for admission to the United States.5 It

is unclear whether the proposed rule will follow the same

procedures as the existing treatment of parolees for significant

public benefit.

Comment

It is anticipated that additional information pertaining to the

proposed rule will be released before the conclusion of Obama's

term in office.

Footnotes

1 www.whitehouse.gov/sites/default/files/docs/final_visa_modernization_report.pdf.

2 www.whitehouse.gov/omb/organization_mission.

3 www.reginfo.gov/public/do/eAgendaViewRule?pubId=201604&RIN=1615-AC04.

4 8 CFR 212(d)(5)(a).

5 Ibid.

The content of this article is intended to provide a general

guide to the subject matter. Specialist advice should be sought

about your specific circumstances.

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