Effective October 1, 2024, the U.S. will raise the minimum investment and revenue thresholds for the International Entrepreneur Rule (IER), a program that allows foreign entrepreneurs to establish and grow businesses in the United States with backing from qualified investors instead of personal funds.
The revised requirements aim to enhance the IER’s impact, encouraging entrepreneurial ventures that contribute to the U.S. economy and create jobs. Under the IER, eligible foreign entrepreneurs can be granted temporary parole status to live and work in the U.S. for up to five years, provided their startups show potential for growth and job creation.
Overview of the International Entrepreneur Rule
The International Entrepreneur Rule offers a pathway for foreign entrepreneurs to launch businesses in the U.S. without requiring a significant personal financial commitment. Instead, entrepreneurs must secure investment from qualified U.S. investors to demonstrate their startup’s viability and growth potential. Key components of the IER include:
- Entrepreneurs may apply whether they are already residing in the U.S. or living abroad.
- The startup entity must have been established within the U.S. within the past five years.
Updated IER Requirements
Beginning October 1, 2024, the U.S. Citizenship and Immigration Services (USCIS) will implement higher thresholds for investment and revenue under the IER:
- Investment Requirement: Entrepreneurs must secure at least $311,071 in qualified U.S. investments, up from the previous $264,147.
- Government Grants**: The minimum amount of qualified government grants or awards is now set at $124,429, up from $105,659.
- Re-Parole Revenue: For entrepreneurs seeking re-parole, the required revenue threshold has increased from $528,293 to $622,142.
Additionally, USCIS will update Form I-941, the Application for Entrepreneur Parole, and its instructions to reflect these new amounts in the near future.
Investor Qualifications
To qualify as an investor under the IER, an individual or organization must have invested at least $746,571 (previously $633,952) in startup entities over the past five years. In addition, two of the entities receiving investments must meet one of the following criteria:
- Created a minimum of five jobs.
- Generated at least $622,142 in revenue (up from $528,293), with an annual growth rate of 20% or higher.
Parole Duration for Entrepreneurs
Entrepreneurs approved under the IER are granted an initial parole period of up to 2.5 years, with the option to apply for re-parole for an additional 2.5 years, allowing a maximum stay of five years. During this time, entrepreneurs are authorized to work for their startup businesses, and their spouses may also apply for employment authorization.
The U.S. continues to position itself as a premier destination for global entrepreneurs, and the updated thresholds under the International Entrepreneur Rule provide a unique opportunity for innovators to establish and scale their businesses in the country without substantial personal investment. This pathway fosters job creation and economic growth, benefiting both entrepreneurs and the U.S. economy.
