Unlocking the American Dream: A Deep Dive into US's New International Entrepreneur Rule That Allows Temporary Stay for Upto 5 Years
The United States' new International Entrepreneur Rule (IER) allows non-citizen entrepreneurs to live and work in the US for up to five years under specific conditions. These conditions include the entrepreneur owning at least 10% of a startup that is established as a US entity, is less than five years old, and has secured a capital investment of at least $250,000 from qualified US investors, or at least $100,000 in grants or awards from eligible US federal, state, or local government entities.
Under the International Entrepreneur Rule (IER), the Department of Homeland Security (DHS) can authorize a stay on a case-by-case basis.
This authorized stay, referred to as ‘parole,’ allows entrepreneurs to work exclusively for their startup ventures. Additionally, the entrepreneur's spouse and children may also qualify for parole under this regulation.
Eligibility Requirements for IER Include
Entrepreneurs can be either residing abroad or already in the United States.
Start-up entities must have been established in the United States within the past five years.
Start-up entities must show at least $264,147 in qualified investments from qualifying investors, or at least $105,659 in qualified government awards or grants, or provide alternative evidence.
The spouse of the entrepreneur may apply for employment authorization after being paroled into the United States. Children are not eligible for employment authorization.
The entrepreneur may be granted an initial parole period of up to 2½ years. If approved for re-parole, based on additional benchmarks in funding, job creation, or revenue, the entrepreneur may receive up to another 2½ years, for a maximum of 5 years.
Up to three entrepreneurs per start-up can be eligible for parole under the IER.
The U.S. Citizenship and Immigration Services (USCIS) considers ownership interest substantial if the Form I-941 applicant has at least a 10% ownership interest in the start-up entity at the time of adjudication of the initial grant of parole and at least a 5% ownership interest at the time of adjudication of a subsequent period of re-parole.
Eligibility Requirements for Startups
The startup must have received a qualified investment of at least $264,147 from one or more qualified investors within 18 months before filing Form I-941.
A qualified investment is defined as a purchase of equity, convertible debt, or other security convertible into equity from the startup, commonly used in financing transactions within the industry.
Bank loans or personal loans not convertible into equity do not meet the definition of a ‘qualified investment.’
Demonstrate substantial potential for rapid growth and job creation through significant capital investment from US investors with proven success in startup investments.
Show potential for growth and job creation through significant awards or grants from federal, state, or local government entities that regularly fund startups.
Although the applicant does not need to prove that at least 50% of the capital in the fund is from US citizens or lawful permanent residents, the applicant must demonstrate that the firm is majority-owned and controlled, directly or indirectly, by US citizens or lawful permanent residents.
Eligibility Requirements for Spouse and Children
While the entrepreneur files Form I-941, the spouse and children (unmarried minors under 21) may file Form I-131, Application for Travel Document, with the required fee ($630) and evidence of their relationship to the entrepreneur.
How to Apply for Entrepreneur Parole in the US
Form I-131 cannot be submitted electronically. To apply for Entrepreneur Parole, individuals must complete Form I-941 along with the required fee of $1,200 and submit supporting documents.
Currently, Form I-941 does not qualify for premium processing. While applicants can request expedited processing, USCIS retains sole discretion over whether to expedite the application.
After approval of Form I-941, if you are outside the United States, you must visit a US embassy or consulate to finalize parole processing and obtain travel documentation, such as a boarding foil, before entering a US port of entry for a final parole decision.
If approved and located within the US, travel documentation will be sent to your listed US address. You must depart the US before presenting yourself at a US port of entry using the provided travel documentation for final parole approval. Once paroled under the IER, employment authorization for your startup entity is granted incidentally, eliminating the need for a separate work authorization application.
Traveling with IER approval is distinct from a visa, as visas typically allow multiple entries and establish a status consistent with the visa type. IER approval permits a single entry into the US under parole status. Once in the US, applicants can apply for advance parole and travel using the advance parole card.
