Company News : In a blow to tech Industry, Trump shelves start-up immigrant rule

Company News : The Trump administration said it would delay, and probably eliminate down the line, a federal rule that would have let foreign entrepreneurs come to the United States to start companies.

 

The decision, announced by the federal government on Monday ahead of its official publication on Tuesday, was quickly slammed by business leaders and organizations, especially from the technology sector, which has benefited heavily from start-ups founded by immigrants.

 

“Today’s announcement is extremely disappointing and represents a fundamental misunderstanding of the critical role immigrant entrepreneurs play in growing the next generation of American companies,” Bobby Franklin, the president and chief executive of the National Venture Capital Association, a trade association for start-up investors, said in a statement.

 

He added that even as other countries are going all out to attract entrepreneurs, “the Trump administration is signaling its intent to do the exact opposite.”

The policy being delayed by the Department of Homeland Security, known as the International Entrepreneur Rule, was to go into effect next week, after being approved by President Obama in January during his final days in office.

 

The rule was enacted to give foreign entrepreneurs who received significant financial backing for new business ventures the ability to come temporarily to the United States to build their companies. Silicon Valley leaders had praised the rule as a kind of “start-up visa.”

 

The department said it would delay the start date of the rule until March 14 of next year, during which time it will seek public comments on a plan to rescind the rule. The department said it decided to delay the rule after President Donald Trumpsigned an executive order on improvements to border security and immigration enforcement on Jan. 25, shortly after taking office.