Increase in Funding Levels

Startups: International Entrepreneur Parole Rule

On October 10, 2024, U.S. Citizenship and Immigration Services (USCIS) released updated guidance for the International Entrepreneur Rule (IER). This Policy Manual update clarifies changes to the financial requirements for qualifying entrepreneurs, specifically investment levels, revenue thresholds, average annualized revenue growth, and other criteria.

IER Is Not Popular

The program is not popular at all. Historical data shows an average of 19 Form I-941 applications filed annually from FY 2018-2023. The increase in minimum investment levels will not likely result in more applications being filed.

2024 Financial Criteria

To keep up with inflation, USCIS has updated the minimum capital investment and revenue levels as of October 1, 2024. These will be updated every 3 years.

The updated financial criteria are designed to ensure that only startups with substantial potential for growth and job creation qualify, emphasizing the importance of demonstrating a startup entity’s substantial potential through considerable investment from qualified U.S. investors and relevant government awards.

Initial Parole Application Criteria

To qualify for initial parole, an entrepreneur must meet the updated investment or grant requirements. For Fiscal Year 2025 (beginning October 1, 2024):

  1. Qualified Investments: Entrepreneurs must show their start-up received at least $311,071 (up from $264,147) from one or more qualified investors within 18 months prior to application.
  2. Government Awards or Grants: Or an entrepreneur may qualify if the start-up received at least $124,429 (up from $105,659) in government funding within the same period.

If these thresholds are not met, applicants can still qualify by providing strong evidence of their startup entity’s substantial potential for growth and job creation.

Re-Parole Criteria for Continuing Entrepreneurs

For re-parole, entrepreneurs must show that during their initial parole period, the business entity or start-up achieved one or more of the following:

  1. Additional Funding: Received at least $622,142 (up from $528,293) in qualified investments, government grants or a combination.
  2. Job Creation: Created at least 5 U.S.-based jobs.
  3. Revenue Growth: Generated at least $622,142 in annual revenue and demonstrated an average annualized revenue growth of 20%.

Like the initial parole, entrepreneurs can still qualify for re-parole by providing additional evidence of the start-up’s impact on U.S. growth if they only meet some of these criteria.

Qualified Investor Standards:

Investors must have invested $746,571 or more in start-ups over the past 5 years, with those start-ups creating significant job creation or revenue growth

Triennial Adjustments
Every 3 years, USCIS will update the investment and revenue levels to reflect current economic data. This will impact the criteria for initial application and subsequent renewals.

Biometrics and Identity Verification for International Entrepreneur

Biometrics (fingerprints and photo) are required for all applicants, including family members. Collection locations vary based on the address entered in the application:

  • Inside the U.S.: Appointments are scheduled at USCIS Application Support Centers.
  • Outside the U.S.: USCIS will coordinate with U.S. embassies or consulates to schedule biometrics appointments.

Applicants approved conditionally under the IER and living outside the U.S. will benefit from USCIS and U.S. Department of State coordination for their biometrics appointments. This includes:

  • U.S. Embassy and Consulate Appointments
    Entrepreneurs can choose to do biometrics at a U.S. embassy or consulate if they want to receive their parole documents at one of these locations.
  • Biometric Support Expansion
    This expanded support will help international applicants to comply with U.S. entry requirements more easily

Effective Dates
October 1, 2024, new investment, revenue and funding requirements will apply to IER applications. Noncitizen entrepreneurs and their spouses and children should follow these guidelines to be compliant with the new standards.

For more information, see the Policy Alert PDF on USCIS’s website.

Demonstrating Significant Public Benefit

To demonstrate significant public benefit, entrepreneurs must show that their startup entity has the potential to create jobs, stimulate economic growth, and contribute to the overall well-being of the United States. This can be achieved by providing evidence of the startup’s potential for rapid growth and job creation, as well as its potential to make a significant impact on the U.S. economy.

Entrepreneurs can demonstrate significant public benefit by providing documentation such as:

  • A business plan that outlines the startup’s goals, objectives, and strategies for growth and job creation.
  • Financial statements that show the startup’s potential for revenue growth and job creation.
  • Letters of support from local government entities, investors, or other stakeholders that demonstrate the startup’s potential for public benefit.
  • Evidence of the entrepreneur’s central and active role in the startup, such as a resume or a letter from the startup’s board of directors.

By providing this documentation, entrepreneurs can demonstrate that their startup entity has the potential to make a significant contribution to the U.S. economy and create jobs for U.S. workers.

Job Creation and Economic Growth

The International Entrepreneur Rule is designed to attract foreign entrepreneurs who can create jobs and stimulate economic growth in the United States. To be eligible for the program, entrepreneurs must demonstrate that their startup entity has the potential for rapid growth and job creation.

Entrepreneurs can demonstrate job creation and economic growth by providing evidence of the startup’s potential for revenue growth, job creation, and innovation. This can include:

  • Financial statements that show the startup’s potential for revenue growth and job creation.
  • A business plan that outlines the startup’s goals, objectives, and strategies for growth and job creation.
  • Letters of support from local government entities, investors, or other stakeholders that demonstrate the startup’s potential for job creation and economic growth.
  • Evidence of the entrepreneur’s central and active role in the startup, such as a resume or a letter from the startup’s board of directors.

By providing this documentation, entrepreneurs can demonstrate that their startup entity has the potential to create jobs and stimulate economic growth in the United States.

International Entrepreneur Rule (IER) Overview

The International Entrepreneur Parole Program was introduced on January 17, 2017, allowing DHS to parole on a case-by-case basis foreign entrepreneurs of start-ups that can demonstrate a very significant investment and public benefit to the United States. The program aims to drive economic growth, job creation and innovation through high-growth start-ups. Key changes to the program include automatic adjustments to the investment and revenue criteria to reflect inflation and economic changes.

The International Entrepreneur Rule allows noncitizen entrepreneurs to bring their start-ups to the U.S. if they show significant potential for growth and job creation. Through a temporary status called “parole” immigrant entrepreneurs can grow their business while benefiting the U.S. economy.

  • Parole Duration: Initial parole for up to 2.5 years with option to apply for 2.5 year extension (max 5 years).
  • Eligible Entrepreneurs: Up to 3 founders per start-up can qualify.
  • Eligible Family Members: Spouses can apply for work authorization after arrival; minor children can accompany the entrepreneur but not work. Spouses can apply for an employment authorization document through Form I-765 after arrival.
Investment into Startup

Eligibility Requirements for Entrepreneurs

Entrepreneurs must meet key requirements for the following to qualify under the International Entrepreneur Rule:

  • Ownership: Must own at least 10% of the start-up at the time of initial application and 5% for re-parole.
  • Role: Must be actively involved in the start-up.
  • Start-Up Criteria:
  • Formed in the U.S. within the last 5 years.
  • Has significant growth and job creation potential.
  • Funding and Investment Evidence:
  • $311,071 from a qualified investor or $124,429 government grant or award.
  • If not met, alternative evidence of start-up growth potential can be submitted.

Definitions of Qualified Investments and Investors

The rule states that to be considered a qualified investor, an individual or entity must:

  1. Invest at least $746,571 in start-ups over 5 years.
  2. Have at least 2 of the invested start-ups create 5 jobs or generate $622,142 in revenue with at least 20% annual growth.

How to Apply for Entrepreneur Parole: Process & Documents

  1. Form I-941: Submit Form I-941, Application for Entrepreneur Parole, with fees and supporting documents.
  2. Travel Documentation:
  • Entrepreneurs outside the U.S. will need to do final processing at a U.S. embassy or consulate.
  • Parolees in the U.S. will receive documents by mail but may need to exit and re-enter for a final parole decision.

Spouses and Children

Family Members:

  • Spouses and children (under 21) can file Form I-131 to apply.
  • Employment for Spouses: Spouses must file Form I-765 for an employment authorization document after arriving in the U.S. under parole. This document allows them to work legally in the U.S. Children are not eligible to work.

Travel and Adjustment of Status

Entrepreneurs who are granted parole under the International Entrepreneur Rule are authorized to enter the United States for an initial parole period of up to 30 months. During this time, they are allowed to work only for the startup entity and are not eligible for employment authorization.

If an entrepreneur wishes to travel outside of the United States during their parole period, they must apply for advance parole. Advance parole is a document that allows an entrepreneur to re-enter the United States after traveling abroad.

To apply for advance parole, entrepreneurs must submit Form I-131, Application for Travel Document, to U.S. Citizenship and Immigration Services (USCIS). The application must include documentation such as a copy of the entrepreneur’s parole authorization, a copy of their passport, and evidence of their central and active role in the startup entity.

Entrepreneurs who are granted parole under the International Entrepreneur Rule are not eligible to adjust their status to a lawful permanent resident (green card) while in the United States. However, they may be eligible to apply for a different visa status, such as an H-1B or L-1 visa, if they meet the eligibility requirements for that visa.

It’s important to note that entrepreneurs who are granted parole under the International Entrepreneur Rule are not considered to be in a lawful permanent resident status, and therefore are not eligible for certain benefits, such as employment authorization for their spouses or children.

FAQ

Q: How much ownership stake do I need to have in the first start up entity make-up to qualify?
A: 10% at the time of initial application. 5% for re-parole.

Q: What if I don’t meet the investment or grant threshold?
A: If your start-up has raised less than the required amount, you can provide alternative evidence (e.g. the startup entity’s substantial potential for rapid growth alone, job creation, market impact) showing the start-up’s potential for significant U.S. economic benefit.

Q: Can multiple entrepreneurs qualify granted parole, per start-up?
A: Yes, up to 3 entrepreneurs per start-up can qualify for parole.

Q: What do I need to apply for entrepreneur parole?
A: Submit Form I-941 with documentation of ownership, active role, and significant capital investment in the start-up. Make sure to include evidence of minimum funding levels.

Q: Can I apply if I’m already in the U.S. under a different visa?
A: Yes, but you may need to exit and re-enter the U.S. under parole to get final approval.

Q: Do I need to be in the U.S. to file my application?
A: No, you can file from outside the U.S. If approved, final parole processing will be at a U.S. embassy or consulate.

Q: Can my spouse and children join me in the U.S. under this program?
A: Yes, spouses and children (under 21) can apply as dependents.

Q: Can my spouse work in the U.S.?
A: After parole, spouses can apply for work authorization by filing Form I-765. Children are not eligible to work.

Q: What are the requirements for re-parole?
A: For re-parole, the start-up must show compelling evidence of continued substantial growth, and public benefit, including one or more of the following:

  • $622,142 in additional funding or grants.
  • 5 or more full-time jobs created.
  • $622,142 in annual revenue with 20% growth.

Q: How long can I stay in the U.S. under the International Entrepreneur Rule?
A: 2.5 years initial parole with possibility of re-parole for an additional 2.5 years, total 5 years.

Q: Where do I go for biometrics?
A: If you choose to receive your parole documents in the U.S., your biometrics will be at a USCIS Application Support Center. If outside the U.S., biometrics will be at a U.S. embassy or consulate.

Q: What if I miss my biometrics appointment?
A: If you miss two biometrics appointments, USCIS will consider your application abandoned and deny.

Q: How do I expedite my application?
A: Expedite requests are reviewed on a case-by-case basis and are granted at USCIS’s discretion. Form I-941 is not eligible for premium processing.

Q: How do I get my parole document after approval?
A: If approved, USCIS will issue a Form I-512L Advance Parole document for multiple entries. Final parole decision is made by U.S. Customs and Border Protection (CBP) upon entry into the U.S.

Q: Does USCIS guarantee parole after conditional approval?
A: No, while USCIS may conditionally approve your application, the final decision is made by U.S. Customs and Border Protection (CBP) at the port of entry. If there’s been no significant change in circumstances, CBP will likely grant parole.

Q: If I’m conditionally approved and already in the U.S., how do I get my final parole determination documents?
A: If you’re already in the U.S. and conditionally approved, USCIS will mail your Form I-512L Advance Parole document to your U.S. address. But you may need to exit and re-enter the U.S. for final parole approval.

Q: What if I’m outside the U.S. when I’m conditionally approved?
A: If conditionally approved outside the U.S., you’ll need to go to a U.S. embassy or consulate for biometrics and travel documents. Once you get your boarding foil, you can enter the U.S. for final parole approval by CBP.

Q: Can I enter and exit the U.S. multiple times under my parole status?
A: Yes, the Form I-512L Advance Parole document allows multiple entries during the validity of your parole period as long as your status and purpose of re-entry remains the same.

Q: What if I want to transition from parole to a more permanent status?
A: Parole is temporary and doesn’t count as admission to the U.S. If you want to transition to a nonimmigrant or immigrant visa, you may need to apply from abroad as many adjustment options require formal admission.

Q: How do I extend my parole after the initial period?
A: To apply for re-parole, file a new Form I-941 before your initial 2.5-year period expires. The application must show that your start-up has continued to grow and meet the investment, investment and revenue amounts or rapid growth and job- creation requirements.

  • Extension Requirements:
  • $622,142 in additional investments, government awards or grants.
  • Five or more qualified jobs created during the initial period.
  • $622,142 in annual revenue with 20% growth during the initial period.

Q: What do I do after the 5-year parole period?
A: After 5 years, entrepreneurs granted parole are encouraged to transition to a longer term visa or immigrant status if they meet the eligibility requirements. USCIS has guidance on options for entrepreneurs under the Options for Noncitizen Entrepreneurs to Work in the United States program.

Final Steps for Entrepreneurs

Processing Tips

To avoid delays, make sure your contact information is up to date (U.S. address, phone number and email) so you receive biometrics and travel documents notices on time.

  1. Stay Current: USCIS updates the thresholds and requirements every 3 years; check the website for the latest information.
  2. File Correctly: Send applications and any subsequent forms to the USCIS Dallas Lockbox Facility:

For USPS:

USCIS

Attn: IER

PO Box 650890

Dallas, TX 75265

For FedEx, UPS, or DHL:

USCIS

Attn: IER (Box 650890)

2501 S. State Highway 121 Business, Suite 400

Lewisville, TX 75067

Application Checklist: Make sure all supporting evidence, including proof of qualified investment amount, government grants, ownership documents and biometrics is complete and accurate. Missing documents can result in delays or denials.

More Resources

This guidance is designed to help international entrepreneurs take advantage of the U.S. market while meeting all necessary immigration requirements for launching and growing a U.S.-based start-up.For more information and updates on the International Entrepreneur Rule, entrepreneurs should visit:

Options for Noncitizen Entrepreneurs for long-term visa pathways after parole.On October 10, 2024, U.S. Citizenship and Immigration Services (USCIS) released updated guidance for the International Entrepreneur Rule (IER). This Policy Manual update clarifies changes to the financial requirements for qualifying entrepreneurs, specifically investment levels, revenue thresholds and other criteria.

USCIS Policy Manual for the latest policies.

USICS page on International Entrepreneur Parole

Form I-941 Information Page for application instructions and forms.

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