[Congressional Record Volume 157, Number 38 (Monday, March 14, 2011)]
[Senate]
[Page S1602]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KERRY (for himself, Mr. Lugar, and Mr. Udall of Colorado):
  S. 565. A bill to establish an employment-based immigrant visa for 
alien entrepreneurs who have received significant capital from 
investors to establish a business in the United States; to the 
Committee on the Judiciary.
  Mr. LUGAR. Mr. President, I rise to support the StartUp Visa Act of 
2011, as the leading Republican cosponsor, because I believe this 
legislation will increase the possibility that companies such as 
Google, Intel, Yahoo and Proctor & Gamble--which were all started 
completely or in part by immigrant entrepreneurs--will continue to be 
founded in America. This legislation will help immigrant entrepreneurs 
like Paroon Chadha, Purdue University alumnus and cofounder of a 
company that currently employs more than two dozen American-born 
Hoosiers and continues to grow--as demonstrated by plans to hire four 
additional staff members in April 2011. Paroon and I believe America 
remains the best country in the world to do business and that we should 
continue attracting immigrant entrepreneurs to help drive innovation 
and job creation here at home.
  At a time when our country struggles to achieve full economic 
recovery, foreign-born entrepreneurs who wish to establish companies 
and create jobs in the United States, often with the financial backing 
of American investors, are instead operating from other countries 
because they find the process of immigrating to the U.S. too difficult. 
The logic of our current approach places America at a competitive 
disadvantage in the global race to attract the very best talent and is 
counterproductive to our national interest.
  According to a 2009 survey of American entrepreneurs conducted by the 
Kauffman Foundation, an overwhelming majority of the participants felt 
that ``the United States cannot have a sustained economic recovery 
without another burst of entrepreneurial activity.'' Over the past 15 
years, immigrant entrepreneurs have started 25 percent of venture-
backed public companies and 40 percent of companies in the high 
technology sector. A 2007 report commissioned by the National Venture 
Capital Association noted that the market capitalization of publically 
traded venture-backed companies founded by immigrant entrepreneurs 
exceeded $500 billion.
  The StartUp visa represents a commonsense solution to this problem 
and does not require the creation of new visas. The bill proposes to 
draw from existing visas under the EB-5 category, which is a set-aside 
of visas for immigrants who invest at least $1 million in the U.S., and 
thereby create 10 jobs, to obtain a green card. In areas where 
unemployment is high, foreign nationals need only invest $500,000 to 
obtain residency. Many more visas are annually allocated for the EB-5 
category than are used, so the addition of immigrant entrepreneurs will 
not require additional visas.
  Better utilizing existing visas, immigrant entrepreneurs living 
outside the United States would be eligible to apply for a StartUp visa 
if a qualified American investor agrees to financially sponsor their 
entrepreneurial venture with a minimum investment of $100,000. After 2 
years, their business must have created five new jobs and raised not 
less than $500,000 in additional capital investment or generate not 
less than $500,000 in revenue.
  Additionally, immigrant entrepreneurs currently residing in the 
United States on an unexpired H-1B visa or immigrant entrepreneurs 
currently in the country who have completed a graduate level degree in 
science, technology, engineering, math, computer science, or other 
relevant academic discipline from an accredited United States 
institution of higher education would be eligible for a StartUp visa. 
Eligibility in each of these cases is contingent upon the immigrant 
entrepreneur demonstrating that they will be self-sufficient and that a 
qualified U.S. investor will financially back their entrepreneurial 
venture with a minimum investment of $20,000. After 2 years, their 
business must have created three new jobs and raised not less than 
$100,000 in additional capital investment or generate not less than 
$100,000 in revenue.
  Finally, immigrant entrepreneurs living outside the U.S. who have 
controlling interest of a company based in a foreign country that has 
generated, during the most recent 12-month period, not less than 
$100,000 in revenue from sales in the U.S. would be eligible to apply 
for a StartUp visa. At the conclusion of 2 years, this immigrant 
entrepreneur must have created three new jobs in the U.S. and raised 
not less than $100,000 in additional capital investment or generate not 
less than $100,000 in revenue.
  Immigrant entrepreneurs want to come to America, hire Americans, and 
create jobs right here for Americans--and we should be helping them 
come. Senator Kerry and I believe that it is in our national interest 
to encourage those who can help drive the next generation of innovation 
to do it here, not someplace else. This plan has the support of 
investors, immigrants, technology organizations, and taxpayers. I ask 
for your support on passage of this bill.
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