The International Entrepreneur Rule (IER) of U.S. Citizenship and Immigration Services (USCIS) allows foreign entrepreneurs to work in and grow their startups in the U.S. The International Entrepreneur Rule (IER) permits noncitizen entrepreneurs to stay in the U.S. for up to five years provided that they can demonstrate that their startup business will generate significant public benefit. This stay is granted on a case-by-case basis and is initially approved for two and one-half years, with a possible extension of an additional two and one-half years.
Eligibility Criteria
- Formation of the Startup:
- The startup must be a U.S.-based entity formed within the last five years before applying and show substantial potential for rapid growth and job creation. This can be evidenced through significant capital investment or government grants.
- Potential for Growth and Job Creation:
- The startup must demonstrate its potential for rapid growth and job creation. This can be shown through substantial investment from qualified investors, significant government grants, or alternative compelling evidence.
- Substantial Ownership and Active Role:
- The entrepreneur must hold at least a 10% ownership in the startup and play a central role in its operations.
Current Funding Requirements (Until October 1, 2024)
To prove the startup’s potential for rapid growth, the following funding benchmarks must be met within the last 18 months:
- Qualified Investments: At least $264,147 from U.S. citizens or lawful permanent residents; or
- Government Awards/Grants: At least $105,659 from U.S. federal, state, or local government entities.
- Alternative Evidence: If a startup has not met these thresholds, applicants can still demonstrate their potential through other reliable and compelling evidence, such as:
- Rapid growth indicators (e.g., user numbers, revenue)
- Social impact and national scope
- Success in attracting additional investments or crowdfunding
- Participation in reputable startup accelerators or incubators
Funding Requirements on or after October 1, 2024
On or after October 1, 2024, there will be new investment and revenue thresholds under the International Entrepreneur Rule (IER). These adjustments, mandated to occur every three years, are made to account for inflation. The application fee will remain unchanged.
For Initial Applications:
- Investment: At least $311,071 (previously $264,147) from qualifying investors.
- Government Awards/Grants: At least $124,429 (previously $105,659).
- Alternative Criteria: If thresholds are partially met, provide compelling evidence of the startup’s potential for rapid growth and job creation.
For Second Period of Authorized Stay:
- Investment or Funding: At least $622,142 (previously $528,293) in combined qualified investments and government awards/grants.
- Job Creation: At least five qualified jobs.
- Revenue: Annual revenue of at least $622,142 (previously $528,293) with an average annual growth of at least 20%.
Current Qualified Investors Requirements (Until October 1, 2024)
A qualified investor must be:
- A U.S. citizen or lawful permanent resident, or an entity majority-owned by such individuals.
- Regularly investing substantial amounts in startups that show significant growth.
- Having made investments totaling at least $633,952 in the past five years, with those startups generating at least $528,293 in revenue or creating five qualified jobs each.
Qualified Investor Requirements on or after October 1, 2024:
- Investment History: At least $746,571 (previously $633,952) in startup entities over the past five years.
- Startup Success: Investments must have led to at least two startups creating five qualified jobs each or generating at least $622,142 (previously $528,293) in revenue with an average annual growth of 20%.
Re-parole Process
To qualify for the second grant of parole, the qualified investor must demonstrate that the startup continues to provide significant public benefit by meeting one or more of the following criteria during the initial parole period:
- Investment: The startup received at least $528,293 in qualified investments or government grants/awards.
- Job Creation: The startup created at least five qualified jobs.
- Revenue: The startup achieved annual revenue of at least $528,293 and maintained a 20% annual growth rate.
If the startup only partially meets these criteria, you may submit alternative compelling evidence of its potential for rapid growth and job creation.
Accompanying Family Members
Spouses and children (under 21 years) of the entrepreneur can also apply for parole. Once paroled, spouses can apply for employment authorization, allowing them to work in the U.S., although children are not eligible for work authorization.
Employment Authorization for the Spouse
The entrepreneur’s spouse may also be eligible for parole and can apply for employment authorization. However, children of entrepreneurs are not eligible for employment under this parole.
Understanding the Approval Process
When applying for the International Entrepreneur Parole (IEP) Program, the approval process is critical. Upon conditional approval of Form I-941, the steps you need to take vary depending on whether you are inside or outside the United States.
- Inside the U.S.: If you requested to receive your parole documentation at a U.S. address, you’ll receive a Form I-512L Advance Parole document separately. You must then leave the U.S. and re-enter through a port of entry where CBP will make a final parole determination.
- Outside the U.S.: You need to visit a U.S. embassy or consulate for biometrics collection and identity verification before obtaining travel documentation, which then allows you to enter the U.S. for the final parole determination by CBP.
Multiple Entries and Duration of Stay
Parole under the International Entrepreneur Rule allows multiple entries into the U.S. during its validity period. The initial parole period is up to two and one-half years, and you may apply for re-parole for another two and one-half years, totaling a maximum of five years. Time spent outside the U.S. during parole counts toward this period.
Transition to Immigrant or Nonimmigrant Status
While on parole, you may apply for a change to immigrant or nonimmigrant status. However, parole does not constitute formal admission to the U.S., which might necessitate departure and re-entry under the new status upon visa approval.
Nonimmigrant Pathways for Entrepreneur Employment in the U.S.
H-1B Specialty Occupation
Entrepreneurs may be eligible for the H-1B nonimmigrant classification if they plan to work in a specialty occupation in the U.S. The position must typically require at least a bachelor’s degree in a related field. The petitioning employer may be a company in which the entrepreneur has an ownership interest.
Requirements include:
- Specialty Occupation: The job must generally require at least a bachelor’s degree in a specific field related to the position, supported by evidence like job announcements, expert opinions, and industry standards.
- Degree Relevance: The entrepreneur’s field of study must relate to the specialty occupation.
- Availability of H-1B Visa Numbers: Entrepreneurs must secure a visa number within the annual cap limits and register in the annual H-1B lottery. Certain H-1B petitions are exempt from this cap and can be filed at any time and include institutions of higher education and nonprofit organizations affiliated with institutions of higher education.
L-1A Intracompany Transferee
Entrepreneurs who have worked abroad in a managerial or executive role for at least one year within the past three years for a qualifying organization can apply for the L-1A visa. This visa allows the transfer to a U.S. entity to either join an existing business or start a new office.
Requirements include:
- Qualifying Relationship: The U.S. entity must have a corporate relationship with the foreign employer (parent, branch, affiliate or subsidiary).
- Foreign Employment: Proof of employment in a managerial or executive role abroad.
- Active and Operating: If the U.S. entity has not been operating for at least one year, then the new office must become active within a year, shown by hiring records, business activities, and financial documents.
O-1 Extraordinary Ability
Entrepreneurs with extraordinary ability in sciences, education, business, or athletics can apply for the O-1A visa. This classification is for individuals with sustained national or international acclaim for being at the top echelon of their field.
Requirements include:
- U.S. Employer or Agent: A U.S. employer or agent must file the petition. The petitioner can be a separate legal entity owned by the entrepreneur.
- Extraordinary Ability: The entrepreneur must demonstrate extraordinary ability by either a major, internationally recognized award or meeting at least three of eight evidentiary criteria:
- Receipt of significant national or international prizes or awards;
- Membership in associations requiring outstanding achievements;
- Published material in major media about the applicant and their work;
- Participation as a judge of others’ work in the field;
- Original contributions of major significance;
- Authorship of scholarly articles;
- Employment in a critical or essential capacity for distinguished organizations;
- Commanding a high salary or other remuneration; or
- Comparable evidence.
- Advisory Opinion: A written advisory opinion from an expert or peer group in the applicant’s field assessing the applicant’s qualifications and the nature of their work is required.
E-2 Treaty Investor
The E-2 visa is available to nationals of treaty countries who invest a substantial amount in a U.S. business. The investment must be significant and committed to a bona fide enterprise aimed at generating profit. Applicants must demonstrate ownership or operational control of the enterprise and the investment’s substantiality and legitimacy. Evidence may include tax returns, financial statements, business plans, bank statements, and documentation of the source of funds. The investor must play a key role in developing and directing the business.\
F-1 Optional Practical Training (OPT)
F-1 students work pursuant to optional practical training (OPT) for a business related to their major area of study. They can own and operate their own business only during the initial OPT period. To qualify for a STEM OPT extension, the business must adhere to specific regulatory requirements, including E-Verify participation and proper training plans. Compensation must be comparable to similarly situated U.S. workers, and the student must be a genuine employee. Pre-completion OPT is limited to part-time during school sessions and full-time during breaks, reducing post-completion OPT eligibility accordingly. STEM graduates may apply for a 24-month extension of post-completion OPT, provided their degree is on the DHS STEM Designated Degree Program List.