The new U.S. International Entrepreneur Rules (IER) allow foreign entrepreneurs who meet certain criteria to temporarily live and work in the U.S. for up to five years, including that the applicant owns at least 10% of the startup company’s equity, the startup company is incorporated as a U.S. corporation, is less than five years old, and has received at least $250,000 in capital investment from qualified U.S. investors or at least $100,000 in grants or awards from qualified U.S. federal, state, or local government agencies.
Based on the IER, the Department of Homeland Security (DHS) may grant a period of authorization to stay on a case-by-case basis.
The permitted period of stay is technically called “parole” and under this rule, an entrepreneur granted parole is only eligible to engage in the business that he or she established. The spouse and children of the foreign entrepreneur may also be eligible for parole.
The IER threshold criteria are as follows:
• Entrepreneurs may live abroad or may already be in the United States.
• Startups must have been incorporated in the U.S. within the last five years.
• Startups must demonstrate at least $264,147 in qualified investments from accredited investors or at least $105,659 in qualified government awards or grants, or alternative evidence.
• The entrepreneur’s spouse may apply for a work permit after parole in the U.S. Children are not eligible for work permits.
• Entrepreneurs will be given a maximum parole period of 2.5 years. If re-parole is approved based on additional criteria relating to finances, job creation or revenue, the entrepreneurs can receive a further parole period of up to 2.5 years, up to a maximum of 5 years.
• Up to three entrepreneurs per start-up company can be eligible for parole under the IER.
Entrepreneurial Standards: The U.S. Citizenship and Immigration Services (USCIS) will consider an applicant on Form I-941 to have “substantial” ownership if they hold at least 10% ownership of the startup company at the time of their initial adjudication for parole and at least 5% ownership of the startup company at the time of their subsequent adjudication for a second parole term.
Startup criteria
• A startup must have received a qualified investment of at least $264,147 from one or more qualified investors within the 18 months immediately prior to the filing of Form I-941.
• Qualifying investment means buying stock, convertible notes, or other securities convertible into stock from a startup company and is commonly used in fundraising transactions within the startup industry.
• Bank loans and personal loans that cannot be converted into equity generally do not meet the regulatory definition of a “qualifying investment.”
• Demonstrates great potential for rapid growth and job creation by attracting significant capital investment from U.S. investors with a proven track record of investing in start-ups.
• Also demonstrate this through significant awards or grants from specific federal, state, or local governments that regularly provide awards and grants to startups.
• Although USCIS does not require applicants to demonstrate that at least 50% of the capital contributed to the fund came from U.S. citizens or lawful permanent residents, applicants must still show that the enterprise is majority owned and controlled, directly or indirectly, by U.S. citizens or lawful permanent residents.
Spouse and Children Criteria: While the entrepreneur files Form I-941, the entrepreneur’s spouse and children (unmarried minors under the age of 21) may file Form I-131 (Application for Travel Document), along with the required application fee ($630) and evidence establishing their relationship as the spouse or child of the entrepreneur parolee or entrepreneur parole applicant.
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Form I-131 cannot be submitted online
Application Procedures and Fees: Applicants must submit Form I-941, Application for Entrepreneur Parole, along with the required fee ($1,200) and supporting documents.
processing time: Currently, Form I-941 is not eligible for premium processing. Applicants may make an “Expedited Processing Request,” but the decision to expedite processing is at the sole discretion of USCIS.
What do I do after my application is approved? If your I-941 form has been conditionally approved and you are outside the U.S., you will need to visit a U.S. embassy or consulate abroad to complete your parole processing and obtain your travel documents (such as a boarding foil) before you can present yourself at a U.S. port of entry for your final parole decision.
If your I-941 form is approved and you are in the U.S., your travel documents will be mailed to the U.S. address listed on your I-941 form. You will need to leave the U.S. before presenting at a U.S. port of entry with your travel documents for a final parole decision.
If your I-941 form is approved and you are paroled into the US under IER after reporting to a US port of entry, you will not need to submit a separate form for work authorization as you will be allowed to work in the startup company upon the grant of parole.
IER Approved Travel: This immigration benefit is different from a visa. A visa typically allows multiple entries into the U.S. and gives the applicant a “status” consistent with the visa. An IER approval allows the applicant to enter the U.S. once in parole status. Once in the U.S., the applicant can apply for “advance parole” and can travel using the advance parole card.
