Development to Watch: Entrepreneur Startup Visa Bill Introduced

On July 27, 2021, U.S. Rep Zoe Lofgren, (D-CA) introduced the “Let Immigrants Kickstart Employment Act (LIKE Act).” The proposed bill would create a permanent visa, called a W-1 visa, intended for immigrant entrepreneurs with a 10% stake in a start-up company that receives at least $250,000 in investments, or at least $100,000 in government grants. Under the proposal, the W-1 visa would be valid for years, with a possible extension for another five years based on the number of jobs created. For W-1 holders whose start-up companies create at least 10 jobs, and either raises $1.25 million in investments or generates at least $1 million in annual revenue, it would then be possible to apply for a green card. A W-2 visa would also be available for the startup companies’ essential employees, but the number of W-2 visa employees the company could hire would be based on the number of full-time U.S. workers employed by the company, to protect American workers.

This bill is very promising, as it comes at a time economic growth is critical to the U.S.’ financial recovery from the Covid-19 pandemic. The bill is intended to establish high-growth startup companies in the U.S, which would spur economic growth as well as job creation. Further, this bill would increase the U.S. share of global venture capital, which has drastically fallen over the course of the last two decades. Around half of the high-growth companies in our country were either founded by an immigrant or a first-generation American, so this is a proven strategy for economic growth and job creation.

While we have seen other efforts in this area, none have produced any significant results so far. The International Entrepreneur Parole Program was introduced in early 2017 but has remained largely dormant since, even with President Biden’s DHS restoring the program earlier this year. This program allows immigrants to temporarily stay in the U.S. to start a new business. But the LIKE Act would take things a step further and incentivize immigrant entrepreneurs to come to the U.S., by offering permanent residency to founders and employees, if all the conditions were met. This is an important incentive, as immigrants start companies at almost twice the rate of native-born Americans. Creating a pathway to permanent residency makes the LIKE Act a stronger proposal, once that could gain support on both sides because of the clear economic benefits.

This is a development to watch. ILBSG will continue to monitor the LIKE Act and update its clients as we learn more.