In a significant update affecting immigrant entrepreneurs, U.S. Citizenship and Immigration Services (USCIS) has announced adjustments to the investment and revenue thresholds under the International Entrepreneur Rule (IER), effective October 1, 2024. These changes reflect the agency’s triennial review, which aims to account for inflation and ensure that the financial criteria remain relevant in the current economic landscape.
What Is the International Entrepreneur Rule?
Introduced in 2017, the International Entrepreneur Rule provides a pathway for immigrant entrepreneurs to obtain temporary residency in the United States through a process known as “parole.” This rule is designed to attract high-potential startups that can significantly benefit the U.S. economy by creating jobs and fostering innovation. Entrepreneurs who qualify for this program can receive an initial parole period of up to 2½ years, with the possibility of renewing for an additional 2½ years, provided certain conditions are met.
The International Entrepreneur Rule offers a unique opportunity for immigrant entrepreneurs to build and expand their startups in the United States. However, the program has specific requirements and thresholds that must be met, and these are subject to periodic adjustments, such as the recent changes effective October 1, 2024. Entrepreneurs considering this pathway should consult with an experienced immigration attorney to ensure they meet the criteria and navigate the application process successfully.
New Investment and Revenue Thresholds
The updated thresholds apply to both initial applications and requests for extended stays under the IER. Here’s what immigrant entrepreneurs need to know:
- Initial Applications: Entrepreneurs must now demonstrate that their startup has received at least $311,071 in qualified investments from U.S. investors (up from $264,147) or at least $124,429 in qualified government awards or grants (up from $105,659). If the startup only partially meets these criteria, applicants can present alternative, reliable evidence showing the potential for rapid growth and job creation.
- Extended Stay Applications: For a second period of authorized stay, entrepreneurs must show that their startup has either:
- Received at least $622,142 in qualified investments or grants (up from $528,293),
- Created at least five qualified jobs, or
- Reached annual revenue of at least $622,142, with an average yearly revenue growth of at least 20%.
Updated Criteria for Qualified Investors
In addition to changes affecting entrepreneurs, USCIS has also updated the definition of a “qualified investor.” To be considered a qualified investor under the IER, an individual or organization must have a proven track record of substantial investments in successful startups. Specifically, over the past five years, the investor must have made investments totaling at least $746,571 (up from $633,952), with at least two of the supported startups either creating five or more qualified jobs or generating significant revenue growth.
Implications for Immigrant Entrepreneurs
These adjustments signal the U.S. government’s ongoing commitment to fostering innovation and economic growth by attracting global entrepreneurial talent. However, the increased thresholds also mean that immigrant entrepreneurs must now secure higher levels of funding to meet the eligibility requirements under the IER.
It’s essential for prospective applicants to carefully assess their financial and business plans in light of these changes. For those considering applying or extending their stay under the IER, understanding the new thresholds is crucial to ensuring a successful application.
Professional Legal Counsel for Immigrant Investors
The International Entrepreneur Rule continues to be a valuable pathway for immigrant entrepreneurs aiming to establish and grow their businesses in the United States. With the recent adjustments to investment and revenue thresholds, it’s more important than ever for entrepreneurs to work closely with experienced immigration attorneys to navigate the complexities of the IER and maximize their chances of success.
The right attorney can provide guidance on the best visa option for your situation and help you prepare your application. They can also assist with preparing and submitting your application, as well as representing you in any interactions with USCIS. By understanding the visa options, developing a strong business plan, securing the necessary investment, and consulting with an experienced immigration attorney, you can improve your chances of a successful application and a smooth transition to life in the United States.At Litwin & Smith, we specialize in helping immigrant entrepreneurs understand and meet the requirements of U.S. immigration law. If you have questions about how these changes might impact your application, contact us today for expert guidance.
