NVCA Today

Arizona has passed the most stringent immigration law in the country and, in doing so, has ignited a renewed debate over immigration. Although President Obama has called on Congress to pass a comprehensive immigration bill, and many Members recognize that our immigration system is broken, legislative action to address comprehensive immigration reform seems unlikely prior to the November election. We previously reported that the over 90 members of the House co-sponsored legislation late last year for comprehensive immigration reform (the Comprehensive Immigration Reform for America's Security and Prosperity Act of 2009) and discussed some of the key provisions of the bill. In the Senate, Senate Majority Leader Reid and Senate Judiciary Immigration Subcommittee Chairman Charles Schumer, D-NY, released a draft framework for action on immigration, but have yet to find a Republican to help them hammer out final legislative language. That draft has four pillars: requiring biometric Social Security cards, strengthening border security, creating a process for admitting temporary workers, and implementing a “tough but fair” pathway to legalization for those already here. Absent any bill being passed by the Senate, the House is unlikely to take up the issue.

On a more positive note, the Start-Up Visa initiative has gained traction in both chambers. In February, Senators John Kerry (D-MA) and Richard Lugar (R-IN) introduced a bill to allow immigrant entrepreneurs to obtain a two-year visa if they have secured the support of a qualified U.S. investor. The bill would enable an immigrant entrepreneur to receive a two-year visa if a qualified U.S. investor is willing to dedicate a minimum of $250,000 to the new venture. The Senate bill would create a new category of visa (EB-6), alongside the current EB-5 category. The EB-5 program provides visas to foreign investors or entrepreneurs who invest at least $1 million (or $500,000 in economically disadvantaged areas) and create ten full-time jobs (5 in economically disadvantaged areas). The EB-6 visas would be drawn from the current EB-5 pool. If after two years the EB-6 recipient can prove that they secured the original $250,000 in capital and were able to create five full-time jobs, attract an additional $1 million in investment or generate $1 million in revenue, they would receive permanent legal resident status.

In the House, Rep. Jared Polis (D-CO) also introduced legislation for the Start-Up Visa, and that language was included in the House comprehensive immigration reform bill released in December. Polis’ proposal would streamline and speed-up the EB-5 visa application process; permanently reauthorize and expand the pilot Regional Center Program in economically disadvantaged areas; and create a Start-Up Visa for entrepreneurs who have received venture capital investment. NVCA, alongside several founders of the Start-Up Visa grass roots initiative (Brad Feld, Dave McClure, Eric Ries, and Shervin Pishevar) participated in a congressional staff briefing hosted by Rep. Polis and Rep. Lincoln Diaz–Balart (R-FL) to discuss ways in which the EB-5 Visa program can be reformed to attract foreign entrepreneurs to build their companies in the United States.

The Start-Up Visa movement has gained significant momentum in the last several months, thanks in large part to the efforts of the Start-Up Visa grass roots initiative. Although comprehensive immigration seems unlikely this year, an increasing number of Members of Congress and the Administration recognize the Start-Up Visa initiative as important for U.S. job creation, as the legislation sends the right signal to foreign entrepreneurs that we want them creating businesses and jobs here.