Obama Enacts 'Start-up Visa': New Visa-Friendly Rules For Immigrant Entrepreneurs
Start-Up Visa
US President Obama has proposed new immigration rules last Friday which gives permission for immigrant entrepreneurs to come to the United States and do business within a five year period based on a Washington Post report. However, only immigrant entrepreneurs who are majority owners of their start-up company and can significantly contribute to create jobs and generate revenue are eligible to apply.
The Department of Homeland Security made the announcement of the proposed new immigration rules for entrepreneurs last Friday and the Obama administration is calling the new rule as the "start-up visa."
No Quota Limits to Applicants
There is no limitation to the number of immigrant entrepreneurs who can apply every year, nonetheless, there are very specific criteria which could provide substantial restrictions to would be applicants.
The US Government demands immigrant entrepreneurs to have at least received $345,000 from U.S. venture capitalists or received $100,000 in government grants. The company must also present balance sheet statements, income statements and cash flow documents to prove that their business is viable and able to create jobs.
They must also have at least 15 percent ownership in their business and play a direct role in their company's day to day operations.
Only by satisfying these criteria will they be provided by the US government temporary visa permission to run their business in the US for two years and extend it for three years if their business grows.
Need For Immigrant Entrepreneurs
The Washington Post reports that the Obama administration is responding to a recurring complaint among immigrant entrepreneurs who state that existing US laws deny them the chance to stay in the US to open business despite having the necessary education and business qualifications.
Immigration reform activists state that these bright immigrants are forced to open their business overseas and compete with U.S. firms, instead of creating jobs in the US and expanding America's GDP had they been given the chance to stay longer.
US Competitiveness and Immigrants
The Washington Post reported that the deputy director for technology and innovation, Tom Kalil, and the assistant director for entrepreneurship at the White House, Doug Rand, said that "Immigrant entrepreneurs have always made exceptional contributions to America's economy, in communities all across the country. Immigrants have helped start as many as one of every four small businesses and high-tech start-ups across America, and the majority of high-tech start-ups in Silicon Valley."
Leon Rodriguez director of US Citizenship and Immigration Services said in Wired.com. that "The new visa rules advances a significant public benefit in that it promotes those enterprises that demonstrate a potential for rapid business growth, job creation, and innovation,"
Max Levchin, co-founder of PayPal and an immigrant from the former Soviet Union, fervently expressed that "immigrants are natural-born entrepreneurs. They are quite long on ambition and short on things to lose."
