Delay of International Entrepreneur Rule

Talented immigrant entrepreneurs — many people are shocked to discover 40 percent of Fortune 500 companies took root thanks to an immigrant or the child of an immigrant. Immigration has been part of the fabric of the United States since its founding. The International Entrepreneur Rule, originally scheduled to go into effect on July 17, 2017 has been delayed. This delay may slow the opportunity for us to attract the best and brightest.

Delay in rule implementation

The Department of Homeland Security (DHS), in response to an Executive Order signed by President Trump has issued memoranda delaying this rule from going into effect until March 14, 2018. Immigration attorneys, venture capital groups, and business owners are responding to this delay vigorously, reminding DHS of the significant contributions made to the U.S. economy by immigrant entrepreneurs.

Visas in limbo

DHS estimated there would be nearly 3,000 entrepreneurs eligible on an annual basis. However, since the rule was due to go into effect this month, those entrepreneurs who met the basic requirements are in limbo. Entrepreneurs would have had to meet very specific requirements, some of which include:
  • A major interest in a company that was considered a start up in the U.S. within the last five years.
  • Central and active role in such entity; must have assisted with the success of the business.
  • U.S. investors must have invested capital into the business; the investors must have had a record of success with previous investments.        
  • Awards or grants issued to the start-up by governmental agencies at any level.

Those entrepreneurs, their spouses, and children, would have been eligible to come to the United States for a period of 30

What are subprime mortgages?

Over the last few years, there has been a great deal of press coverage regarding subprime mortgages. While in many cases, the accusations about these mortgages is true, there is a lot more to a subprime mortgage than most media outlets have covered. The majority of Americans are not even certain of what subprime mortgages are, they assume they were given primarily to deadbeats by crooked lenders. While there is some particle of truth to this, this fails to tell the whole story that effectively answers the question - what are subprime mortgages.

The simple explanation

The most simplistic explanation of a subprime mortgage is a mortgage loan that is made to a borrower who has a credit score of below 600 and has other risk factors that make them a more risky borrower than those with better credit scores. However, subprime mortgages were made by commercial banks of all sizes, private lenders and by mortgage companies.  For several years, subprime mortgages were an attractive option for those who were self-employed or faced other financial challenges.

Remembering the good days

Between 2004 and 2006, mortgage rates were at a lower level than they had been for some time. During this period of time, banks who had stringent lending guidelines loosened their guidelines to consumers who had less than perfect credit. Hence the birth of the subprime mortgage. These mortgages were made at higher interest rates to compensate for the increased risk that the loan presented to the bank.

Credit worthiness was not ignored

It is important to understand that the creditworthiness of borrowers was not always ignored by banks who were involved in subprime mortgages. After all, banks are not in the business of owning real estate, they are in the business of loaning money. However, many borrowers fell into “gray” areas meaning they were recovering from a bad divorce, they were returning to the work force after a long period of unemployment or in some cases, they were self-employed. Typically when these loans were sent to underwriting, these “special circumstances” were taken into consideration.

The role of government

Legislative action between 1977 and 1986 had a significant impact on the availability of subprime mortgages. First, the Community Reinvestment Act of 1977 provided incentives to lenders to loan money to lower-income borrowers. In 1980, the Deregulation and Monetary Control act allowed lenders to make loans at higher interest (not always in the best interest