04 Dec How will the Startup/Entrepreneur Visa Contemplated in President Obama’s Executive Action on Immigration Affect Other Immigrant Visas?
On November 20, 2014, President Obama outlined his Executive Action focused on immigration matters. During this address, the President stated: “I will make it easier and faster for high-skilled immigrants, graduates, and entrepreneurs to stay and contribute to our economy, as so many business leaders have proposed.” This comment references a new visa which was originally introduced back in 2010. This visa has been referred to as the “Startup” or “Entrepreneur Visa”. This article will focus on said Visa requirements and how it differs from the EB-5 Visa.
In order to secure an EB-5 Visa, an investor must generally invest at least $1,000,000 in a new commercial enterprise creating at least 10 full-time jobs within two years of admission to the U.S.; if the investment is in a Targeted Employment Area[1] the minimum investment amount is reduced to $500,000. The first step in the application process is to file Form I-526 – Petition by Alien Entrepreneur, with the required supporting evidence (such as a professional Business Plan). After approval, Form I-485, Application to Register Permanent Residence or Adjust Status is filed with USCIS to adjust status to a conditional permanent resident within the U.S. Upon approval of the I-485 application, the EB-5 investor and derivative family members will be granted conditional permanent residence for a two-year period.[2] Finally, 90 days before the two-year anniversary of the granting of conditional resident status, Form I-829 – Petition by Entrepreneur to Remove Conditions, is filed. If USCIS approves this petition, the conditions will be removed from the EB-5 applicant’s status and the EB-5 investor and derivative family members will be allowed to permanently live and work in the U.S.[3]
The Border Security, Economic Opportunity, and Immigration Modernization Act defines the eligibility for an entrepreneur investor to obtain permanent U.S. residence by way of the “Startup Visa”. A qualified entrepreneur would need to maintain valid non-immigrant status in the U.S. for at least 2 years during the 3-year period ending on the date that the investor files an initial petition for such status. The investor must have significant ownership in a U.S. business entity that has created no fewer than 5 full-time jobs, and has invested at least $750,000 in the U.S. business entity unless the investor holds an advanced degree in technology, engineering, or mathematics. in which case creation of at least 4 full-time jobs and an investment of $500,000 is required. [4]
The main differences between the two visas include the required investment amount and job creation. It seems that the eligibility for an Entrepreneur Visa will be less stringent than an EB-5 Visa. The Entrepreneur Visa might be a viable option for those otherwise eligible for E-2 visas who are actually seeking PERMANENT residence rather than temporary visas such as those granted through E-2 petitions, and perhaps with higher average investments. It is highly likely that there may be changes to the bill, if it is actually passed by Congress. With the recent shift in political parties, this will no doubt not be imminent, but rather will be somewhat prolonged. The question remains whether this new Startup Visa will actually be available in the future, and what the exact terms and requirements will be. For example, e-Council Inc. believes that a Business Plan will be required, although not specifically contemplated at this stage. Time will tell if and when this option will be a reality, and the specific details of same.
To find out about professional, well-researched, articulate, expository narrative Visa Business Plans, whether for EB-5 or any other business-related Visa, as well as a variety of ancillary services, all of which are designed to specifically address USCIS’s concerns, contact e-Council Inc.com at info@ecouncilinc.com.
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[1] A targeted employment area is an area that, at the time of investment, is a rural area or an area experiencing unemployment of at least 150 percent of the national average rate. A rural area is any area outside a metropolitan statistical area (as designated by the Office of Management and Budget) or outside the boundary of any city or town having a population of 20,000 or more according to the decennial census.
[2] http://www.uscis.gov/working-united-states/permanent-workers/employment-based-immigration-fifth-preference-eb-5/eb-5-immigrant-investor-process
[3] Id
[4] https://www.govtrack.us/congress/bills/113/s744/text