Recent updates to the International Entrepreneur Rule (IER) require higher investment levels starting October 2024. This guide provides a comprehensive overview of the updated IER, including eligibility requirements, application procedures, family provisions, and long-term strategies.
IER Essentials: What You Need to Know
The IER offers a pathway for foreign entrepreneurs to launch and grow their startups in the United States. It’s not a visa, but a form of “parole,” granting temporary permission to be in the U.S. This parole is specifically designed for innovative entrepreneurs who demonstrate the potential to create jobs and significantly contribute to the U.S. economy. Eligibility generally hinges on substantial ownership in a promising startup, an active management role, and proof of significant investment from qualified U.S. investors or substantial government grants.
Key 2024 Changes: Higher Investment Thresholds
Effective October 1, 2024, the IER’s financial requirements increased. These figures are subject to adjustments based on the Consumer Price Index (CPI). Always verify the most current figures on the USCIS website. Here’s a summary of the key financial changes:
| Requirement | Previous Threshold | New Threshold (October 1, 2024) |
|---|---|---|
| Investments from Qualified U.S. Investors | $250,000 | $375,000 |
| Government Grants or Awards | $125,000 | $187,500 |
| Revenue Generated (for re-parole – optional) | $500,000 | $750,000 |
IER Eligibility: Who Qualifies?
The IER focuses on entrepreneurs poised to make significant contributions to the U.S. Here’s a breakdown of the eligibility criteria:
Startup Ownership and Role:
- Substantial Ownership: You must own at least 10% of the U.S.-based startup. This demonstrates a vested interest in the company’s success.
- Active Role: You must play an active and central role in the startup’s daily operations and overall management. This highlights your direct contribution to its growth.
Startup Criteria:
- Newly Formed: The startup must have been formed within the past five years. This emphasizes the program’s focus on supporting emerging businesses.
- Growth Potential: The startup must demonstrate significant potential for rapid growth and job creation. This can be evidenced through financial projections, market analysis, and expert endorsements.
Funding Requirements:
The IER requires evidence of substantial financial backing, underscoring the startup’s viability. This can be demonstrated through:
- Qualified U.S. Investors: Securing a minimum investment of $375,000 from qualified U.S. investors.
- Government Grants/Awards: Receiving a minimum of $187,500 in government grants or awards.
- Alternative Evidence (If Applicable): If the above thresholds are not met, you may present other compelling evidence of the startup’s potential, such as detailed growth projections or industry recognition.
Who is a “Qualified Investor”?
“Qualified investors” are U.S. citizens, lawful permanent residents, or U.S.-based organizations primarily owned and controlled by U.S. citizens or LPRs with a proven track record of successful startup investments. They must have invested a certain amount in startups over the past five years, and at least two of their prior investments must have met specific job creation or revenue generation targets.
Applying for the IER: A Step-by-Step Guide
The IER application process involves several key steps:
- Gather Required Documents: Compile all necessary documents to showcase your startup’s potential and your essential role within it.
- Complete Form I-941: Accurately and completely fill out Form I-941, Application for Entrepreneur Parole. This is the core document for your application.
- Submit Supporting Documentation: Provide compelling supporting evidence, including financial records, business plans, and any other documentation that reinforces your startup’s potential.
- Optional Forms (If Applicable): Consider submitting Form I-131 (Application for Travel Document) if you need to travel during the application process, and Form I-765 (Application for Employment Authorization) for work authorization (primarily for your spouse).
| Form | Purpose | Applicant |
|---|---|---|
| I-941 | Application for Entrepreneur Parole | Entrepreneur |
| I-131 | Application for Travel Document (Parole) | Spouse and Children of Entrepreneur |
| I-765 | Application for Employment Authorization | Spouse of Entrepreneur (after parole is granted) |
Spouse and Child Provisions
The IER allows the spouse and unmarried children under 21 of the entrepreneur to apply for parole alongside the entrepreneur. Importantly, the spouse can apply for work authorization (using Form I-765) after being granted parole, while children are not eligible for work authorization under the IER.
Parole Duration and Extensions
Initial IER parole is granted for up to 2.5 years. If your startup demonstrates continued growth and meets specific job creation and revenue targets, you may be eligible for a 2.5-year extension, for a total of up to five years.
Benefits and Limitations of the IER
The IER offers a crucial pathway to the U.S. for entrepreneurs who may not qualify for traditional visas. However, it’s essential to understand that IER parole does not lead to permanent residency (a green card). If your goal is permanent residency, you’ll need to explore other immigration avenues.
Alternatives to the IER
The IER is not the only option. Other visa categories, such as the E-2 treaty investor visa or the O-1 visa for individuals with extraordinary ability, might be more suitable depending on your circumstances.
Long-Term Strategies: Beyond the IER
Because IER parole is temporary, planning for the future is essential. Consider your long-term goals in the U.S. and begin researching other visa options well in advance of your parole expiration. It’s also wise to familiarize yourself with U.S. business regulations and explore avenues for securing additional funding to scale your operations.
Staying Informed and Seeking Professional Guidance
U.S. immigration regulations are subject to change. Staying updated with the latest information from USCIS is critical. Given the complexity of immigration law, consulting with an experienced immigration attorney is highly recommended. They can provide personalized advice, ensure your application is complete and compelling, and help you navigate the entire process.
Disclaimer: This information is for general guidance only and does not constitute legal advice. Consult with an immigration attorney for advice specific to your situation.
