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Pandemic Impact Lingers For Immigrant Entrepreneurs

Illustration of a travel visa

Startup founders from certain countries face stricter barriers to entering the United States because of the COVID-19 pandemic. But immigration experts say a series of developments, including a recent policy reversal by United States Citizenship and Immigration Services, has made it easier for immigrants already in the country to stay.

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The Biden administration鈥檚 pandemic-induced travel restrictions for certain countries has made it more difficult for entrepreneurs from those countries to qualify for national interest exceptions 鈥 a Trump-era requirement for a visa 鈥 that would allow them to come to the U.S., according to Sergei Pershman, founder of immigration law firm Pershman Law. And with consulates closed or operating with limited hours, it鈥檚 more difficult for those entrepreneurs to have their visas stamped.

鈥淭his could go away in a matter of weeks or could stay there for months,鈥 Pershman said.

The national interest exception, which shows that a person qualifies for a visa and it鈥檚 in the national interest that they come to the U.S., was introduced under the Trump administration. It applies to employment-based visas such as the O-1 and H-1 visas.听

But the Biden administration has made it more difficult for entrepreneurs from certain countries to meet the qualifications because of the ongoing COVID-19 pandemic. Those countries include the United Kingdom, the Republic of Ireland, the European Schengen area, Brazil, South Africa, Iran and China. (It鈥檚 unclear if Biden鈥檚 most recent travel restrictions with India, , could affect those looking to emigrate from that country.)

It鈥檚 also still too early to tell how impactful the Biden administration鈥檚 policies will be on startup founders and those who are hoping to move to the U.S. to start a company, according to Pershman.听

鈥淭he expectations have certainly changed,鈥 he said. 鈥淚t鈥檚 kind of too early to say if there鈥檚 been a major change in how USCIS looks at certain kinds of petitions.鈥

Still, there have been some changes under Biden鈥檚 watch already that have implications for immigrant entrepreneurs.

Easier visa extensions

One notable recent change is a move by USCIS to return to its pre-Trump policy of granting visa extension petitions based on previous approvals. Before President Trump took office, the agency鈥檚 policy was that if a person was granted a visa such as an O-1 鈥 a type of visa granted to an applicant with 鈥渆xtraordinary abilities鈥 鈥 an extension was typically granted unless there had been a major change in their situation.听

But in 2017, the Trump administration changed course and visa extensions were essentially viewed as new visa applications, meaning that a reviewer could decide that a person shouldn鈥檛 have received a visa in the first place and deny the extension.

鈥淚t meant there were considerable delays,鈥 Pershman said. 鈥淏ecause it takes a much longer time to review like it was the first time. It was also very unreliable 鈥 you wouldn’t expect that the same case would be approved the next time you filed. So it raised a lot of uncertainty for a company.鈥

Last week, .听

More responsive immigration services

Another change is the level of responsiveness from USCIS in the past 100 days or so, according to , founding partner of , a San Francisco-based venture firm that invests in immigrant founders. A big issue with the Trump administration, Mehta said, was its rhetoric, which made the U.S. seem like an unwelcoming, difficult place to move to and start a company.听

And since the previous administration 鈥済utted鈥 the Department of Homeland Security, USCIS was understaffed, according to Mehta. The Biden administration, however, has increased staffing levels, which has in turn made the agency more responsive.

Better economic prospects

Now that the U.S. economy appears to be on the upswing as it recovers from the blow of the pandemic, more immigrants may want to come or stay and start a company, Mehta said. Already, with the vaccine rollout in the U.S. ramping up and COVID-19 cases on the decline, more international students are returning to schools, and now that they鈥檙e graduating, they鈥檙e more inclined to stay, he added.听

鈥淚 think there鈥檚 a lot of encouragement now and I鈥檓 seeing more and more founders and entrepreneurs returning back to school,鈥 Mehta said.

The influx of entrepreneurship that Mehta has observed also tends to be younger founders, which is a good sign.

Despite the obvious negative aspects of the COVID-19 pandemic, it had a positive effect on tech entrepreneurship, according to , managing partner of Boston-based , another venture firm that focuses on investing in immigrant startup founders. The firm鈥檚 results last year were boosted by COVID鈥檚 acceleration of tech, Dukach said. One Way Ventures has had at least three portfolio companies announce acquisitions since March 2020, per 附近上门.

And while it鈥檚 barely been 100 days into the new administration, Dukach is optimistic for the future of founders who want to come to the United States and build companies.

鈥淐ertainly the rhetoric from the Biden administration makes it sound like it will be easier,鈥 Dukach said.

No specific visa for startup founders

The most common visa for startup founders is the O-1 visa, which is granted to individuals who have demonstrated 鈥渆xtraordinary abilities.鈥 To qualify for the visa, founders have to demonstrate that they have made significant achievements in their field, which they could try to establish by showing press coverage or other proof of accomplishment.听

The L-1 visa is commonly used by foreign companies that are already established elsewhere and want to expand into the United States, and the E-2 is used by investors from certain countries who want to temporarily run their business in the U.S.听

The H-1B visa is what鈥檚 most commonly talked about in the conversations around tech and immigration. An employment-based visa, the H-1B allows companies to hire people from other countries for 鈥渟pecialty occupations,鈥 and there鈥檚 an annual cap for the number of visas that are issued. The visa is assigned through a lottery system.

However, it鈥檚 no longer very common for startups to use H-1B visas to bring talent over from other countries, according to Dukach, with the visa more often being used by large technology employers.听

According to Pershman that鈥檚 because it can be a lengthy process for someone to get a visa and emigrate to the United States, and while large tech companies are often continuously onboarding employees, that鈥檚 usually not the case for many startups. When a startup needs to hire, it usually wants to fill that position quickly and can鈥檛 wait six months, he said.

There is not 鈥 but should be, in Pershman鈥檚 view 鈥 a separate visa category for startup founders.

鈥淎 separate visa doesn鈥檛 exist right now where you could show this is a legitimate enterprise in the startup space, maybe has some funding already, has a clear business plan 鈥 it鈥檚 just not there,鈥 he said.

Illustration: Dom Guzman

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