New York Business Lawyers

As a country, we have a decidedly mixed opinion about foreign investment. Protectionists are wary of the notion of foreign monies funding domestic projects.  However, the job creation that comes with foreign investment is hard to dismiss by any camp.  And typically, when we think of foreign investment for jobs, we think of auto plants and other large scale operations.

However, foreign investment for startups is just as a critical and often overlooked.   Foreign nationals wishing to start businesses in the US (i.e., small businesses) have created startup environments ripe for job creation and this critical fact can no longer be ignored.

Moreover, immigration law for foreign founders to start domestic businesses is poorly tailored to promote job creation and is mired in the infamously backlogged immigration machine.  Chief in the problem matrix is the so called EB-5 visa, which allows foreign investors to get a visa in exchange for starting a US business with $1M in capital (or $500K for economically distressed areas) along with the creation of at least 10 US jobs.

There are those that believe the Visa does not address a variety of instances where foreign investors can positively impact the US job landscape.  The people of StartupVisa.com believe that VISA reform is required to change the criteria above to allow visas for foreign founders who have successfully attracted US investment.  They point to reform legislation proposed by Rep. Jared Polis (D-CO) in the House called the Employment Benefit Act of 2009 and the Senate Startup Visa Act of 2010, sponsored by Senators John Kerry (D-MA) & Richard Lugar (R-IN).

Under the proposed legislation, EB-5 visas could be issued not only to foreign investors, but to founders who receive funding from US investors of a minimum $100,000, towards a 3^rd party total of $250,000 in investment. The logic behind this is to foster the ability of idea rich foreigners to cultivate their business in the US, rather than overseas.  So the next big social media platform that originates in India, by leveraging equity investment capital, could open offices in the US.