New Changes are Coming to the International Entrepreneur Rule Starting October 1st — Visa Lawyer Blog — July 29, 2024
Recently the U.S. Citizenship and Immigration Services (USCIS) announced new changes to the International Entrepreneur Rule effective October 1, 2024.
What is the International Entrepreneur Rule
The International Entrepreneur Rule (IER), was first established by the Department of Homeland Security (DHS) in 2017.
The program allows noncitizen entrepreneurs to live and work in the United States temporarily, if they can demonstrate that their businesses will provide a significant public benefit to the United States via economic benefits and job creation.
Those granted parole under the program are eligible to work for their startup companies for an initial period of 2 ½ years, and their dependents can accompany them to the United States.
The current requirements of the International Entrepreneur parole program are as follows:
- Entrepreneurs already in the United States and those residing overseas are eligible to apply
- Start-up entities must have been formed in the United States within the past five years
- Start-up entities must demonstrate substantial potential for rapid growth and job creation by showing at least $264,147 in qualified investments from qualifying investors, at least $105,659 in qualified government awards or grants, or alternative evidence
- The spouse of the entrepreneur may apply for employment authorization after being paroled into the United States
- The entrepreneur may be granted an initial parole period of up to 2½ years. If approved for re-parole, based on additional benchmarks in funding, job creation, or revenue described below, the entrepreneur may receive up to another 2½ years, for a maximum of 5 years under the program
New Increases to Qualifying Investment Amounts
- Initial Applications: Starting October 1st to demonstrate the businesses’ potential for growth and job creation, initial applicants will need to show at least $311,071 in qualified investments from qualifying investors, at least $124,429 in qualified government awards or grants, or, if only partially meeting the threshold investment or award criteria, alternative evidence of the start-up entity’s substantial potential for rapid growth and job creation.
- Re-parole Applications: For those applying for a second period of authorized stay, the entrepreneur must demonstrate that the start-up entity has either:
- Received a qualified investment, qualified government grants or awards, or a combination of such funding, of at least $622,142(currently $528,293);
- Created at least five qualified jobs; or
- Reached annual revenue in the United States of at least $622,142 (currently $528,293) and averaged at least 20% in annual revenue growth.
- USCIS will also require a “qualified investor” to have a history of substantial investment in successful startup entities, during the five years preceding their application, as follows:
- The individual or organization must have made investments in startup entities of at least $746,571 (currently $633,952) in total, in exchange for equity, convertible debt, or other security convertible into equity commonly used in financing transactions within the startup entities’ respective industries; and
- After such investment by such individual or organization, at least two such startup entities each created at least five qualified jobs or generated at least $622,142 (currently $528,293) in revenue with an average annualized revenue growth of at least 20%.
These changes mean that starting October 1st, USCIS will require investors to show that they have had a track record of success in past start-up businesses, as evidenced by significant investments, job creation, and revenue generation.
More information about these changes can be found in the federal register here.
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