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{{McNair ProjectsBlogPost|Project TitleHas title=Immigration Policy and Entrepreneurship Start-Up Visa (Blog Post),|Topic Area=Policy,|OwnerHas author=Ramee Saleh,& Tay Jacobe|Start TermHas content status=Fall 2016,Published|End TermHas Graphics status=Fall 2016,None|StatusHas publication date=Active2017/02/09|PriorityHas processing notes=Ramee & Tay to finish 2,|Due Date=NA,|Stage=DRAFTED,|Deliverable=Blog Post,|Audience=General Public,|Keywords=Policy, Immigration, visa, Startups,|Primary Billing=AccMcNair01,/13/17

The U.S. economy has largely recovered from the Great Recession with a solid streak of private sector job growth -- growth began again in 2009 and has averaged '''Starting an annual growth rate of 2.1% since then -- but the economy can still be pushed for new and innovative ways to create jobs. Increasing high-skilled immigration has been touted by politicians as a potential economy-boosting solution because it promotes the growth of American service sectors and fulfills positions in critical STEm work“Start-fields. New research from the Harvard Business School has shown that immigrants are disproportionately represented in the field of entrepreneurship; despite the fact that immigrants comprise only 15% of the American population, they represent 24% of the pool of entrepreneurs.Up” Visa'''

Job growth by immigrants extends beyond small family businesses; immigrants increasingly have higher stakes in critical top-performing firms. A study by the Kauffman Foundation found that in 2012 these firms, in just engineering and high-tech sectorsOn August 26, “employed some 560,000 workers and generated $63 billion in sales.” Although 2016 the Harvard Business Review notes Obama administration unveiled a new immigration proposal that included provisions for immigrantentrepreneurs: the International Entrepreneur Rule. This “start-founded businesses are more likely up visa” intends to make it possible for foreign entrepreneurs to fail than native founded business, “those that survive experience greater employment growth”. Inc. Magazine generates a list of the 500 fastest growing companies enter and remain in the United States and in 2014 20% of CEOs on the list were immigrants. There’s a clear trend here -- immigrants are disproportionately leading and creating high performing businessesThe rule aims to attract entrepreneurial talent, and especially that comes with jobs, billions in revenue, and increased prominence for advanced technology fields. It also seeks to prevent the US in the financial“brain drain” of international students who are unable to obtain H-technology sector1B visas after completing their educations at U.S. universities.

*“Who have a significant ownership interest in OVERVIEWThe proposed International Entrepreneur Rule would allow the startup (at least 15 percent) U.S. Citizenship and have an active and central role Immigration Services to its operations;*Whose startup was formed grant visas on a case-by-case basis. First-time applicants must own 15% of a start-up company created in the United States within U.S. in the past previous three years; and*Whose startup has substantial and demonstrated ago. They also need to demonstrate significant potential for rapid business growth and job creation, as evidenced by:*Receiving . Applicants must play a significant investment of capital (at least role in the company’s management. Companies must have $345,000) in venture capital from certain qualified U.S. investors with established “established records of successful investments;*Receiving significant awards investments” or grants (at least $100,000) from certain federal, state or local government entities; or*Partially satisfying one or both of the above criteria in addition to other reliable and compelling evidence of the startup entity’s substantial funding. Entrepreneurs who do not meet these standards must show potential for rapid growth and job creationcontribution to the public good. If accepted, foreign entrepreneurs (and dependents upon application) will be granted a two-year stay. Entrepreneurs may apply to extend their stay for an additional three years after meeting certain qualifications. There is no extension after the first; the hope is that the entrepreneur can switch to a different visa or obtain a greencard.”

While the public ANALYSIS The proposed rule has until October 10received early praise; Tim Ryan, 2016 to submit suggestions before a final rule is put in placethe co-founder of Startup San Diego Tim Ryan, many in applauded the tech industry are approve of such a proposal as a step in the right direction. Tim RyanHowever, the actual impact on entrepreneurs and their fledgling startups is uncertain. The proposed rule would impact a limited number of entrepreneurs. The DHS estimates that a mere 2,940 would qualify if the rule is enacted, In contrast, 315,857 H1-B visas were approved in the 2014 fiscal year. The high level of investment required may be unreasonable. Y Combinator, widely considered the world’s best startup accelerator, cowhich offers start-founder ups a maximum of Startup San Diego$120,000 in investment funding. However, companies are expected to have at least $345, even advocates for less stringent requirements but thinks 000. This money must come from investors with a record of repeated investment successes. Some proponents of an initiative like this worry that there simply will not be a reputable investors able to provide that even as is level of funding. Or, if a group of investors can fulfill the requirement, they may not all have the necessary experience.   Would the rule should prevent “brain drain” of highlychange bring high-educated tech talent to the U.S.? The requirement that the company must have been founded in the U.S. and that the applicant has a significant role in the company may end up limiting the pool to those already in the US who need a new visa to permit them to stay. This may help international students back at US universities who are unable to their home countriesacquire H-1B visas.Thus, the visa may help keep entrepreneurial talent here while failing to attract new recruits. Bernhard Schroeder Lastly, director at San Diego State University’s Lavin Entrepreneurship Centerthere is an issue of time -- entrepreneurs only have five years. Currently, offers the caveat visa can only be renewed once with the hopes the applicant can move to a different visa category altogether. Combined with the high levels of making sure investment required for initial application and renewal, this may put a heavy strain on startups. TechCrunch puts the rule does not allow unproductive workers average time of an “IPO-track start-up” at about seven years, although it can take up to 10 years. Ultimately this is an additional risk to stay potential investors. There is a possibility that a company, or at least key members of it, could lose official immigration status in the US but agrees . For these reasons, it is likely that it could help the country economically impact of this version of a US start-up visa will be limited. Especially if it helps the majority of recipients are foreign nationals working in companies flourish like it that are predominantly comprised of US nationals.  CONCLUSION The effects of the Obama Administration's proposed rule are unknown . The eligibility requirements are so rigorous and the time period allotted by the visa is so short that there is intendeda reasonable claim that not much will change at all. If the 115th Congress remains as stagnant as the 114th or if President-elect Trump repeals the order, then there may be little hope of any legislation to create a truly meaningful start-up visa. After This rule could be implemented as early as next January, but it’s questionable whether it will survive the United States Citizenship new administration. While Trump vows to “establish new immigration controls to boost wages and Immigration Services responds to public comments ensure that open jobs are offered to American workers first,” his exact plans for administering H-1B visas or start-up visas are unclear. It will come down to whose voices convince him -- the final rule will not be put lucrative tech industry that relies on foreign labor or his fierce supporters who want restrictions on immigration; both are up in place until approved by the Federal Registrarair.