The America COMPETES (Creating Opportunities for Manufacturing, Pre-Eminence in Technology and Economic Strength) Act of 2022, led by the U.S. House of Representatives, proposes to increase the availability of visas for startup founders, their essential employees, and their families under a new “W” visa. The Act is an effort to increase U.S. competitiveness and create new immigration paths for foreign entrepreneurs who hope to build their new business in the U.S.
Currently, the International Entrepreneur Parole (IEP) Program is the sole opportunity for foreign entrepreneurs to start and build a company in the U.S. However, the Program is not a visa program and as such, doesn’t provide access to citizenship. The W visa proposes self-petitioning for green cards rather than waiting for sponsorship. In addition, the IEP program was largely frozen during the previous administration.
Many other countries, including the U.K., Australia, and Canada, provide visas for startup founders. As such, the U.S. is not competitive in attracting entrepreneurs.
Certain requirements are included in the proposed W visa for each individual, including a minimum 10% ownership stake in the startup, certain fundraising criteria, among others. The proposed visa would offer a maximum of eight-year availability, with the initial visa lasting for three years. Certain hiring, revenue, and investment thresholds must be met to extend the visa.
Providing the startup continues to grow, founders and employees may have the option to self-petition for a green card. This is a unique offering, given that most green card holders are sponsored for their immigrant visas, most commonly by an employer or family member. Self-employed individuals many times do not have the option of sponsorship for their green card.
Exemptions from the per-country green card cap are proposed for individuals with doctorates in STEM fields. This may alleviate the extensive backlog of green card applicants for highly educated Chinese and Indian nationals.
The proposed America COMPETES Act also includes elements of previous proposals from the Uyghur Human Rights Protection Act and the Hong Kong Safe Harbor Act, which simplifies the process of qualifying individuals to enter the U.S. Both previously proposed acts have received bipartisan support.
ILBSG continues to closely monitor proposed policy updates. If you have questions about starting a business in the U.S. or any other immigration-related issue, contact us at any time. We work with you in your specific situation to ensure you get the right advice.
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