WASHINGTON, D.C. – U.S. Senators Chris Coons (D-Del.), Jerry Moran (R-Kan.), Mark Warner (D-Va.), and Roy Blunt (R-Mo.), today introduced Startup Act 3.0 – the updated version of their bipartisan jobs and high-skilled immigration plan to jumpstart the economy through the creation and growth of new businesses.
Startup Act 3.0 creates both Entrepreneur and STEM Visas for highly-educated and entrepreneurial immigrants to stay in the United States where their talent and new ideas can fuel economic growth and create American jobs. The legislation also modifies the tax code to encourage investment in new businesses, accelerates the commercialization of university research that can lead to new ventures, and seeks to improve the regulatory process.
“America has long been seen as the land of opportunity for innovators and entrepreneurs. We must do everything possible to make certain that remains true,” Sen. Moran said. “At a time when our economy needs jobs first and foremost, America’s archaic government policies have us falling behind. We are losing talent and jobs by the day to countries like Canada, Chile, and the United Kingdom that are aggressively courting the world’s best and brightest. We must pass Startup Act 3.0, or we risk losing the next generation of great entrepreneurs and the jobs they create to countries that have taken action to attract and better support these innovators.”
“With a renewed focus on comprehensive immigration reform, it is imperative that we take commonsense steps to help the U.S. compete and win the global competition for talented innovators and entrepreneurs,” Sen. Warner said. “Our bipartisan legislation provides greater support for high-wage, high-skill jobs. We also propose reasonable steps to reform our tax and regulatory policies to help promote investment and job creation, and Startup Act 3.0 also looks to accelerate the transfer of university R&D into the marketplace.”
“While our economic recovery is ongoing, we have a chance to look toward the future and build the kind of innovation-based economy that will help our kids and grandkids compete and succeed for generations to come,” Sen. Coons said. “Startup Act 3.0 will help us get there by bringing ideas and discoveries from the laboratory to the marketplace, helping startups access the R&D Tax Credit which supports growth and job creation, and ensuring that when a foreign-born, American-educated graduate student in science, technology, engineering or math has a great idea to start a business, they do it here in the United States instead of going home to compete with us. Thanks to Senators Moran, Warner and Blunt for their hard work and leadership on this legislation.”
“Now more than ever, we simply cannot afford to lose American entrepreneurs as a result of anti-competitive domestic policies. I’m committed to fighting to remove barriers for job creators so they can grow and hire here in the U.S.,” Sen. Blunt said. “Countries like Great Britain and Canada are already promoting their low-tax, business friendly regulatory environments in hopes of attracting U.S.-based companies to relocate. This common-sense legislation will help us keep more American innovators here at home.”
Research shows that for close to three decades, companies less than five years old have created almost all net new jobs in America – averaging about three million jobs each year.
Additionally, immigrants to the United States have a long history of creating businesses in America. Of the current Fortune 500 companies – including Apple, Google and eBay – more than 40 percent were founded by a first- or second-generation American. These American companies employ more than 10 million people. Both American and foreign-born entrepreneurs are needed to jumpstart the economy through the creation and growth of new businesses.
“I’m encouraged to see continued enthusiasm and momentum in Washington to support entrepreneurs,” said Steve Case, Revolution LLC CEO and member of President Obama’s Council on Jobs and Competitiveness. “With the reintroduction of the bipartisan Startup Act, Senator Moran, Senator Warner, Senator Coons, and Senator Blunt are demonstrating a real commitment to help the United States win the global battle for talent. By creating a new visa for foreign students with advanced STEM degrees and immigrant entrepreneurs, and by eliminating the per-country cap on employment-based visas, we will make it easier for the best and the brightest from across the globe to start businesses, innovate, and create jobs right here in the United States.”
Many of the principles included in Startup Act 3.0 are based on the research and analysis by the Ewing Marion Kauffman Foundation, and have been endorsed by President Obama’s Council on Jobs and Competitiveness.
“Kauffman Foundation research has highlighted the economic importance of new and young firms – they create jobs, introduce innovations, and drive economic growth,” said Dane Stangler, acting director of Research & Policy at the Kauffman Foundation. “Yet they continue to face many barriers to entry and growth, which policymakers can help address. Our research suggests that improving access to capital, creating new pathways for immigrant entrepreneurs, and regulatory reform will help address these barriers.”
The provisions in Startup Act 3.0 have been endorsed by CEA, TechAmerica, Financial Services Forum, the National Small Business Association, Google, CONNECT, CTIA, Engine Advocacy, Computer and Communications Industry Association, the Greater Kansas City Chamber of Commerce, the Austin Chamber of Commerce, Angel Capital Association , ITI, Northern Virginia Technology Council, Perceptive Software, Shenandoah Valley Technology Council, Silicon Valley Leadership Group , Tampa Bay Technology Forum, TechNet, Virginia Chamber of Commerce and Wichita Chamber of Commerce.
Click here to read a one-pager on Why Startup Act 3.0 Matters.
Startup Act 3.0 includes the following provisions: