USCIS has recently announced updated requirements for the International Entrepreneur Rule (IER), a program that offers foreign entrepreneurs the opportunity to grow their startups in the US.

The changes, which took effect on October 1, 2024, are part of a routine adjustment to keep pace with inflation, and will affect key financial thresholds for investments, grants, and revenue criteria that entrepreneurs must meet to qualify for parole under the program.

 

Background to the International Entrepreneur Rule

 

The International Entrepreneur Rule (IER) was created to encourage foreign entrepreneurs to establish startups in the United States.

Under the program, foreign nationals can apply for a temporary period of authorized stay, known as “parole,” if they demonstrate that their startup has significant potential for rapid growth and job creation.

The IER is designed as an alternative to traditional visa programs, which may not offer a clear pathway for startup founders.

For example, unlike the H-1B visa, which is tied to specific employment, the IER focuses on the potential of the startup, making it a unique avenue for entrepreneurs who have secured substantial investment or support from US-based entities.

Entrepreneurs who qualify under the IER are granted a temporary stay in the US for up to 30 months, which can be extended for an additional 30 months (re-parole), provided the startup continues to demonstrate growth and create jobs. Although it is not a direct path to permanent residency, the IER offers an important opportunity for founders to establish their businesses in one of the world’s most competitive markets.

 

Latest Changes to the International Entrepreneur Rule Thresholds

 

The key changes include the following:

 

Investment Thresholds

 

For an initial application, entrepreneurs must now demonstrate that they have received at least $311,071 in qualified investments from US-based investors, up from the previous requirement of $264,147. This figure represents the minimum amount that needs to be secured to demonstrate the startup’s potential for growth.

 

Government Grants or Awards

 

Entrepreneurs can also qualify by securing US government grants or awards. The new threshold for this route has increased from $105,659 to $124,429. This adjustment allows entrepreneurs to pursue different forms of financial support, beyond private investment, while still demonstrating their startup’s viability.

 

Re-Parole Requirements

 

To qualify for re-parole, the startup must continue to show progress. Entrepreneurs must now prove that their startup has received at least $622,142 in funding (up from $528,293) or has generated that amount in revenue while maintaining an average annual revenue growth of at least 20%. In addition, the company must have created at least five qualified jobs during this period.

 

Qualified Investor Criteria

 

To be considered a qualified investor, individuals or organizations must now have made at least $746,571 in total investments into startups over the past five years, up from $633,952. Furthermore, two of these startups must have either created at least five jobs or generated revenue of at least $622,142 with annual growth of 20% or more.

 

Biometrics and Application Process Updates

 

In addition to adjusting the financial thresholds, the USCIS has clarified the process for collecting biometrics from applicants. Biometrics must be collected before an application can be fully approved, although USCIS may issue a conditional approval notice before this step is completed.

For entrepreneurs outside the US, instructions on how to complete the biometric process will be provided along with the conditional approval. Canadian citizens, however, are exempt from the need for a travel document, simplifying the process for applicants from Canada.

 

Implications for Entrepreneurs

 

For entrepreneurs considering this pathway, the updated requirements should be carefully evaluated in the context of their business plans. The changes may mean that startups need to secure additional funding or demonstrate stronger revenue growth before applying for parole or re-parole.

For entrepreneurs already in the US under the IER, the updated re-parole requirements provide a new and clear target for the next phase of growth in preparation for an extension application.

For investors, the new guidelines raise the bar slightly for becoming a qualified investor, but they also serve to highlight the value that successful startups bring to the economy. Investors who meet these requirements can be confident that their contributions will help bring innovative companies to the US and contribute to economic growth.

 

Next Steps for Applicants

 

The new thresholds apply to all applications filed on or after October 1, 2024. Entrepreneurs should ensure that they meet the updated requirements before submitting their applications to USCIS. In the coming months, USCIS will also update Form I-941 (Application for Entrepreneur Parole) and its instructions to reflect the new financial amounts.

The next review of these thresholds will take place in three years, as the program requires automatic adjustments based on inflation. Entrepreneurs should monitor these adjustments to plan their long-term business and immigration strategies.

 

Need Assistance?

 

For entrepreneurs looking to establish a startup in the US, the IER continues to offer a unique opportunity to build and grow a business in one of the world’s leading economies. For guidance on your options to set up business in the US, or to extend your permission to stay Stateside, contact our US business immigration attorneys.