Chapter 3 - Documentation and Evidence

A. Entrepreneur

1. Ownership

The entrepreneur applying for parole is required to have a substantial ownership interest in the start-up entity. USCIS considers at least 10 percent ownership interest to be substantial at the time of the adjudication of the initial grant of parole and 5 percent to be substantial at the adjudication of re-parole.^[1]

Evidence of ownership interest may include, but is not limited to:

Organizational documents (such as articles of incorporation, bylaws, articles of organization, operating agreement, certificate of partnership, or partnership agreement);
Equity purchase or grant agreements;
Equity ledger;
Equity certificates;
Ownership schedules;
Capitalization tables; and
Any other relevant, probative, and credible documentation establishing ownership.

2. Central and Active Role in a Start-up Entity

The applicant is required to have a central and active role in the start-up entity. Within that role, the applicant must be well-positioned, due to their knowledge, skills, or experience, to substantially assist the entity with the growth and success of its business.^[2]

The applicant must provide a detailed description of their central and active role in the start-up entity along with supporting evidence that may include, but is not limited to:

Letters from relevant government agencies, qualified investors, or established business associations with an understanding of the applicant’s knowledge, skills, or experience that would advance the entity’s business;
News articles or other similar evidence indicating that the applicant has received significant attention and recognition;
Documentation showing that the applicant or entity has been recently invited to participate in, is currently participating in, or has graduated from one or more established and reputable start-up accelerators;
Documentation showing that the applicant has played an active and central role in the success of prior startup entities or other relevant business entities;
Degrees or other documentation indicating that the applicant has knowledge, skills, or experience that would significantly advance the entity’s business;
Documentation pertaining to intellectual property of the start-up entity, such as a patent, that was obtained by the applicant or as a result of the applicant’s efforts and expertise;
Position description; and
Any other relevant, probative, and credible evidence indicating the applicant’s ability to advance the entity’s business in the United States.^[3]

B. Start-up Entity

A start-up entity is a U.S. business entity that was recently formed, has lawfully done business during any period of operation since its date of formation, and has substantial potential for rapid growth and job creation.^[4]

Evidence to demonstrate the company meets the definition of a start-up entity may include, but is not limited to:

Organizational documents such as articles of incorporation, bylaws, articles of organization, operating agreements, certificates of partnership, partnership agreements, or other evidence of formation, as applicable;
Tax records;
Financial records; or
Other relevant documentation.

The Business Structures (PDF, 322.91 KB) overview provides more information on the most common business forms or structures, including information on formation, fundamental characteristics, and the tax forms submitted to the Internal Revenue Service.

C. Qualified Investment, Award, or Grant

1. Investment Option

If the applicant is using a qualified investment to demonstrate the start-up entity’s potential for rapid growth and job creation, the applicant must provide evidence that a qualified investor is the source of the investment, as well as evidence of the amount and date of the investment in the start-up entity, rather than in a parent, subsidiary, affiliated, or related company.^[5]

Source of the Investment

If the investor is an individual, the applicant must submit evidence showing that the investor is a U.S. citizen or lawful permanent resident (LPR) of the United States. The applicant should submit a copy of a government-issued identity document showing the photograph, name, and date of birth of the investor, along with evidence showing that the investor is a U.S. citizen or LPR of the United States. The copy must clearly show the photo and identity information.

If the investor is an organization, such as a venture capital firm or other U.S. business investing in the start-up entity, the applicant must submit evidence that the organization operates through a legal entity organized under the laws of the United States. Such evidence may include, but is not limited to, organizational documents such as articles of incorporation, bylaws, articles of organization, operating agreement, certificate of partnership, or partnership agreement.

The applicant must also submit evidence showing that the investing organization is majority owned and controlled, directly and indirectly, by U.S. citizens or LPRs of the United States.^[6] Such evidence may include an ownership structure chart outlining the direct and indirect ownership of the organization together with evidence that the individuals ultimately owning and controlling a majority of the organization are U.S. citizens or LPRs of the United States. Many investment firms based in the United States, such as venture capital firms, have a wide range of funding from limited partners that vest control in U.S. citizen partners who manage and even control the fund.

While USCIS does not require the applicant to establish that at least 50 percent of the capital contributed to the fund is sourced from U.S. citizens or LPRs, in the venture capital firm context, the applicant must nevertheless show that the firm is majority owned and controlled, directly and indirectly, by U.S. citizens or LPRs.

To demonstrate the individual investor’s or organization investor’s successful track record of investment in start-up entities, the applicant must submit evidence such as, but not limited to, bank records, wire transfers, debt agreements, equity purchase agreements, equity certificates, equity ledgers, or capitalization tables.

To satisfy the job creation or revenue generation requirement, the applicant must submit documentation, such as tax records, payroll records, Employment Eligibility Verification (Form I-9) records, or audited financial statements.

Receipt of the Investment

The applicant must submit evidence that the start-up entity received the investment.^[7] Such evidence may include copies of the start-up entity’s bank records, accounting documents, or corporate ownership records. These records must demonstrate the trail of lawfully derived capital from a qualified investor into the applicant’s start-up entity. The records must demonstrate that the invested capital was used to purchase equity, convertible debt, or other security convertible into an equity interest in the applicant’s start-up entity.

2. Government Award or Grant Option

If the applicant is using a qualified government award or grant to establish the start-up entity’s substantial potential for rapid growth and job creation, the applicant must submit evidence to establish that the award or grant is for economic development, research and development, or job creation (or other similar monetary award typically given to start-up entities), made by a federal, state, or local government entity that regularly provides such awards or grants to start-up entities.^[8] Such evidence may include records such as:

Copies of grant or award letters;
Other documentation from the government entity confirming the issuance of the award or grant, including the amount of the award or grant as well as the recipient; and
Bank records confirming receipt of the award or grant.

3. Alternative Evidence Option

If the applicant provides sufficient evidence to demonstrate that they meet the regulatory definition of entrepreneur and that the entity meets the regulatory definition of a start-up but only partially meets the requirements for a qualified investment or a qualified award or grant, the applicant may provide other reliable and compelling evidence of the start-up entity’s substantial potential for rapid growth and job creation.^[9]

In the final rule, DHS recognized that reliable and compelling evidence of the start-up entity’s substantial potential for rapid growth may vary depending on the nature of the business and the industry in which it operates. Therefore, applicants providing other reliable and compelling evidence of the start-up entity’s potential are not limited to certain types of evidence.^[10]

The preamble to the final rule, however, did recognize that non-monetary contributions and funding from non-U.S. sources may not be considered as relevant or probative evidence.^[11]

Additional supporting evidence may include, but is not limited to:

Number of users or customers;
Revenue generated by the start-up entity;
Additional investments or fundraising, including through crowdfunding platforms;
Social impact of the start-up entity;
National scope of the start-up entity;
Positive effects on the start-up entity’s locality or region; and
Any other reliable and compelling evidence that the start-up entity has substantial potential for rapid growth and job creation.

D. Significant Public Benefit

In addition to meeting the investment, grant, or award criteria, the applicant should submit additional supporting evidence describing their start-up idea and demonstrating its substantial potential for rapid growth and job creation. Such supporting evidence may include:

Evidence of investments from any investors, government awards or grants, or revenue generation. Such evidence could include bank records, wire transfers, equity purchase agreements, equity certificates, equity ledgers, or capitalization tables;
Letters from relevant government agencies, qualified investors, or established business associations with knowledge of the entity’s research, products or services. Letters from the same organizations or individuals confirming that the applicant’s knowledge, skills, or experience would advance the entity’s business;
Newspaper articles or other similar evidence that the applicant or their entity have received significant attention or recognition;
Evidence that the applicant or their entity have been recently invited to participate in, are currently participating in, or have graduated from one or more established and reputable start-up accelerators;
Patent awards or other documents indicating that the applicant or their entity are focused on developing new technologies or cutting-edge research;
Evidence that the applicant has played an active and central role in the success of prior start-ups, such as letters from relevant government agencies, qualified investors, or established business associations with knowledge of the applicant’s prior start-up activities;
Degrees or other documentation indicating that the applicant has the knowledge, skills, or experience that would significantly advance their entity’s business;
Tax or payroll records, I-9 records, or other documents indicating that the applicant’s entity has created qualified jobs before the applicant files for parole;
Any other reliable evidence indicating the applicant’s entity’s potential for growth and the applicant’s ability to advance their entity’s business in the United States; or
Any other evidence that a grant of parole would provide a significant public benefit to the United States based on the applicant’s role as the entrepreneur of a start-up entity, if the other listed evidence does not apply to the applicant’s entrepreneurial activities.