United States Citizenship and Immigration Services (USCIS) recently updated the section of its website devoted to the International Entrepreneur Rule (IER). The IER applies to foreign national entrepreneurs whose stay and business venture in the United States will provide a significant public benefit. Such persons may qualify for a grant of parole or temporary admission into the United States, as well as limited employment authorization. In addition, USCIS announced that the dollar revenue and investment requirements for qualifying IER start-up entities will be increased effective October 1, 2024.
The update to the USCIS’ IER website section has apparently been made to generate interest in the IER program and to increase the number of applications received by the USCIS for participation in this program. The USCIS notes that it has received only 84 IER applications since the 2021 fiscal year and further comments that it has worked through its previous backlog of IER cases and looks forward to processing new applications “as expeditiously as possible.” USCIS has also provided a new IER application evidence checklist that will hopefully help applicants, including entrepreneurs in Artificial Intelligence and other critical and emerging technology fields.
The IER was introduced in January 2017 during the Obama administration and allows the grant of parole to entrepreneurs to work exclusively for a dedicated start-up business. The basic qualification requirements are the following:
- The entrepreneur must have substantial ownership (at least 10% at the time of the initial application’s adjudication) in the start-up venture and have a central and active role in its operations.
- The entrepreneur may be either living abroad or already be in the United States, although it is possible that a departure and reentry with a parole document may be required if the applicant is in the United States.
- The subject start-up entity must have been established in the United States within the past five years.
- Up to three entrepreneurs per start-up may receive parole.
- The entrepreneurmaybe paroled for an initial period ofup to 2½ years.If a new parole grant is approved (subject to satisfying additional metrics of funding, job creation, or revenue), the entrepreneur mayreceive up to another 2½ years, for a maximum of 5 years. After this, no further grants of parole are possible, but the entrepreneur may seek a nonimmigrant status that authorizes employment or permanent residence. The IER does not provide a pathway to permanent residence, however.
In addition, USCIS has provided an updated set of FAQs that includes information on how entrepreneurs, spouses, and children can all remain in the United States together. The spouse of the entrepreneur may apply for employment authorization by filing Form I-765 after being paroled into the United States, but children are not eligible for employment authorization.
USCIS also announced increased revenue and investment requirements for qualifying IER start-up entities. USCIS has confirmed that the following adjustments will become effective on October 1st of this year:
- For an initial parole application, the entrepreneur must demonstrate the startup entity’s substantial potential for rapid growth and job creation by showing at least$311,071(currently $264,147) in qualified investments from qualifying investors, or at least$124,429 (currently $105,659) in qualified government awards or grants. If the threshold investment or award criteria are only partially met, alternative reliable and compelling evidence of the start-up entity’s substantial potential for rapid growth and job creation should be submitted.
- For a parole renewal application, the entrepreneur generally 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.
To be a “qualified investor,” the investor must have a history of substantial investment in successful startup entities. USCIS will generally consider such an individual or organization a qualified investor if, during the preceding five years, the following requirements are met:
- The individual or organization 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 jobsorgenerated at least$622,142(currently $528,293) in revenue with average annualized revenue growth of at least 20%.
The Department of Homeland Security published the adjusted dollar amounts in afinal rule on July 25, 2024. The final rule will become effective on October 1, 2024.
The IER supplements the range of nonimmigrant visas and other mechanisms available to foreign nationals wishing to enter the United States with employment authorization and provides an additional avenue for such persons to work in the United States. USCIS is clearly concerned that the IER program is being overlooked by aspiring entrepreneurs and it is likely that applications filed under this program will receive favorable treatment. Since the Trump administration sought to delay and, unsuccessfully, to rescind the IER, it is probable that the program will be frozen and possibly eliminated if President Trump is reelected. Persons who qualify for parole under the IER are therefore encouraged not to delay their applications. The attorneys at Tafapolsky & Smith are thoroughly familiar with the nuances of the IER parole process and are available to assist any persons that wish to participate in this process.
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