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Sam Effron is an Associate in the firm’s New York office. Sam’s practice focuses on general corporate representation, securities law matters, and transactional work, including public and private offerings, mergers and acquisitions, venture capital financings, debt and venture capital fund formation, federal securities law compliance and reporting, and corporate governance matters. He has provided counsel to a diverse range of public and private companies, both domestic and foreign, in a variety of industries, including video gaming, consumer electronics, media, e-commerce, software and high technology, education, marketing, financial services, and shipping/maritime logistics.

United States Citizenship and Immigration Services (USCIS) recently announced a new proposed rule for entrepreneurs. If the rule becomes law, qualified entrepreneurs would be considered for parole (temporary permission to be in the United States) to jumpstart and build their businesses in the United States. The rule is a path-breaking proposal because it seeks to use and retrofit an existing immigration benefit called “parole” to meet the needs of entrepreneurs, who may otherwise be unable to secure a nonimmigrant visa such as an H-1B or E-2 visa.

But while this proposal could be a solution for some entrepreneurs, it contains requirements that are out of step with the realities of many emerging companies. Note that we may not see a final rule published until next year (if at all), and any final rule would likely have adjustments. The proposed rule is intended to accelerate innovation that will have a broad impact on the United States but is burdened with job creation and minimum investment requirements that aspiring and potentially IPO-bound entrepreneurs would not be able to satisfy in the initial years of growing a business. If finalized in its current form, the rule would benefit very few founders of emerging companies. Continue Reading Proposed USCIS Rule for Entrepreneurs Would Benefit Very Few if Finalized