USCIS announced that effective October 1, 2024, the investment and revenue requirements under the International Entrepreneur Rule will increase, as required every three years. The application fee will remain the same.

 

As background, the International Entrepreneur Rule (IER), published in 2017, allows the Department of Homeland Security to grant a period of authorized stay (parole), on a case-by-case basis, to noncitizen entrepreneurs if their startup has the potential to grow quickly and create jobs. If granted parole, these entrepreneurs can work for their own startup, and their spouses can apply for permission to work in the U.S. A grant of IER parole allows an entrepreneur to enter and remain in the U.S. to work for the start-up for up 30 months (2.5 years). After this, an entrepreneur can apply for 30 more months of re-parole (collectively, 5 years total).

 

Some of the key changes under the recent triennial update include:

 

• For an initial application, applicants need to demonstrate that their startup can grow quickly and create jobs by showing at least:

• $311,071 (currently $264,147) in investments from qualifying investors;

• at least $124,429 (currently $105,659) from government awards or grants;

• or, if only partially meeting the threshold investment or award criteria, alternative reliable and compelling evidence of the start-up entity’s substantial potential for rapid growth and job creation.

• For an extension application,  applicants must show that the startup has:

• Received at least $622,142 (currently $528,293) from investors or grants

• Created at least five jobs; and

• Made at least $622,142 (currently $528,293) in annual revenue and averaged at least 20% in annual revenue growth.

 

The definition of a “qualified investor” requires the investor to have a history of substantial investment in successful startup entities. An individual or organization may be considered a “qualified investor” if, during the preceding five years, the following apply:

 

• Individual or organization has invested at least $746,571 (currently $633,952) in total, in startups, 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, at least two of those startups each created five jobs or generated at least $622,142 (currently $528,293) in revenue with average annualized revenue growth of at least 20%.

 

According to new data obtained by the National Foundation for American Policy, the International Entrepreneur Rule, has been underutilized. Although the program was relaunched in 2021, the USCIS has received only 94 applications since FY 2021. In its recent announcement relating to its triennial investment and revenue update, USCIS confirmed that it also recently updated its International Entrepreneur Rule FAQs, highlighting that there is no backlog, and they look forward to adjudicating applications as quickly as possible.

 

The IEP may be an attractive option for entrepreneurs with ideas for startups to remain in the U.S., including those who failed to gain H-1B status in the annual lottery. A successful business could allow individuals to qualify in the employment-based first preference (extraordinary ability) or second preference green card category, with the possibility to self-petition with a “national interest” waiver.

 

If you have questions or would like further information, please reach out to our office.