The United States has introduced the International Entrepreneur Rule (IER) to support non-citizen entrepreneurs seeking to establish and expand their startups within the country. This initiative aims to provide significant opportunities for entrepreneurs from various nations, including Nigeria, to contribute to the U.S. economy through innovation and job creation.
Here is a comprehensive overview of the IER, including eligibility criteria and the application process.
Overview of the International Entrepreneur Rule (IER)
The IER grants temporary parole status to foreign entrepreneurs who meet specific criteria, allowing them to live and work in the U.S. for up to five years to develop and scale their businesses. Key conditions include:
- Ownership: The entrepreneur must own at least 10% of the startup at the time of the initial application and at least 5% at the time of re-parole.
- Startup Requirements: The startup must be less than five years old and established as a U.S. entity.
- Investment: The startup must have received a minimum of $250,000 in capital from qualified U.S. investors or $100,000 in government grants or awards.
The Department of Homeland Security (DHS) grants this temporary status, known as ‘parole,’ on a case-by-case basis. Entrepreneurs granted parole can work exclusively for their startup. Additionally, the entrepreneur’s spouse and children may also qualify for parole, with the spouse eligible to apply for employment authorization upon entering the U.S.
Eligibility Criteria for IER
To qualify for the IER, entrepreneurs and their startups must meet the following criteria:
- Entrepreneur’s Residence: Entrepreneurs may be residing abroad or already in the U.S.
- Startup Formation: The startup must have been established in the U.S. within the past five years.
- Investment and Grants: The startup must demonstrate at least $264,147 in qualified investments from investors or $105,659 in government awards or grants.
- Initial Parole Period: Entrepreneurs may receive an initial parole period of up to 2.5 years, with a possible extension of an additional 2.5 years based on further funding, job creation, or revenue benchmarks.
- Number of Entrepreneurs: Up to three entrepreneurs per startup may be eligible for parole under the IER.
Detailed Criteria for Entrepreneurs and Startups
- Ownership Interest: Entrepreneurs must possess a substantial ownership interest in the startup.
- Qualified Investments: Investments must be equity, convertible debt, or other securities convertible into equity.
- Growth Potential: The startup should exhibit significant potential for rapid growth and job creation.
- Application Process
The application process involves the following steps:
- Entrepreneurs must submit Form I-941 for Entrepreneur Parole, along with a $1,200 fee.
- The spouse and children (unmarried minors under 21) must file Form I-131, Application for Travel Document, with a $630 fee and supporting documents.
- Form I-941 is currently not eligible for premium processing, but expedited processing may be requested at USCIS’s discretion.
- If approved, entrepreneurs outside the U.S. must complete parole processing at a U.S. embassy or consulate. Those within the U.S. will receive travel documentation by mail and must depart and re-enter the U.S. for final parole determination.
- Entrepreneurs approved under the IER are authorized to work for their startup without needing a separate work authorization form. This benefit is distinct from a visa, allowing a one-time entry into the U.S. Entrepreneurs may apply for ‘advance parole’ for additional travel needs.
