This change is meant to help new employees at big companies, not necessarily people in startups. Notice that the ruling follows on the heals of the 1-apr H1B 2008 application date, wherein the quota was exceeded on the first day, inducing a lottery. The same thing happened last year. Under this ruling new students graduating and going to work at big companies will have two shots at the H1B lottery.
That said, startups will benefit from the same treatment.
what worries me is that if you're not american, you're a "non-citizen". I'm still a citizen, just a british one. What's wrong with saying foreign citizens?
me too. Especially when on the mounted TVs you can see only CNN, and most of their reports are about the "war in terror", and all the scaremongering going on, then you see the ocasional guard with the machine gun, then the voice saying that we are in "Orange level of threat", (has it ever been blue or green?). Added the knowledge that you can whisked away to Guantanamo Bay, and have no recourse in courts whatsoever, it makes a very crappy experience.
No wonder tourists don't come as much in the US as it was before 9/11, even after falling dollar they'd rather go somewhere else where they feel welcomed.
The title is misleading. The 17 month period is an extension you qualify for ONLY if you have already filed for an H-1B. This means you must already have gotten enough funding to prove that your cash inflow can sustain your salary.
You can stay after the one year period even now provided you file for an H-1B and get it.
This 17 month period is primarily to do away with the period between your OPT expiration and start of your H-1B.
My take on the new rules is that anyone with a pending H-1B gets the 17 month extension automatically, but that anyone else in the OPT period on an F-1 with a science / technology / engineering / math degree working for a company that required skills related to the degree could file for the 17 month extension even if they don't have a pending H-1B.
Another side issue (not challenging your comment) is that it's very difficult to get an H-1B to work at a company that the applicant owns a big chunk of. So a founder wouldn't be able to get an H-1B at their own startup. However, they can be on the payroll at a company they own during their OPT, and it's conceivable to be acquired within the new 29 month period.
Immigration and Naturalization Services would be the agency that used to take care these matters. They've since been rolled into with the Dept. of Homeland Security.
That said, startups will benefit from the same treatment.
(See http://en.wikipedia.org/wiki/H1B_visa#Quotas_and_changes_in_...)