USCIS Lowers Thresholds for IER Startup Program to Increase Foreign Entrepreneurs Applications

U.S. Citizenship and Immigration Services (USCIS) lowers thresholds for IER startup program for foreign entrepreneurs to make it more accessible and appealing to foreign entrepreneurs aspiring to establish and grow their startups in the United States. It has announced significant adjustments to the thresholds in the International Entrepreneur Rule (IER) on July 12, 2024, as part of the Biden administration's efforts to boost immigration among entrepreneurs and provide greater clarity and transparency to the program.

When was International Entrepreneur Rule introduced?

The Obama administration first introduced the International Entrepreneur Rule in August 2016 to encourage international entrepreneurs to establish and grow their businesses in the United States. The rule was created under the authority of parole, which allows the Department of Homeland Security (DHS) to grant individuals temporary entry into the US on a case-by-case basis for urgent humanitarian reasons or significant public benefit.

Under the revised guidelines, the minimum funding thresholds required to demonstrate a startup's potential for rapid growth and job creation have been lowered. Entrepreneurs can now qualify by securing qualified investments totaling at least $264,147 from qualified investors or obtaining qualified awards or grants of at least $105,659 from federal, state, or local government entities within the 18 months preceding their application.

Foreign entrepreneurs who meet these criteria can now potentially stay in the US for up to five years, contingent upon their venture's ability to maintain its growth trajectory and public benefit. The initial parole period, granted for two and a half years, can be extended if the startup meets additional funding milestones and employment benchmarks.

Eligibility Criteria for Qualified Entrepreneurs

To be eligible for the IER, entrepreneurs must hold a substantial ownership stake of at least 10% in their startup and play a central, active role in its day-to-day operations and decision-making processes. The startup must have been legally established within the US in the past five years and exhibit strong potential for swift expansion and employment generation.

The IER enables entrepreneurs to apply for parole from outside the US, provided they meet all criteria. Those already residing in the country under a different nonimmigrant status may also apply. However, program approval might necessitate a departure and re-entry to activate the parole conditions.

Each startup can have up to three entrepreneurs qualify for parole under the IER. While spouses of these entrepreneurs may also apply for parole and subsequently seek employment authorisation, their children are not eligible for work authorisation despite being allowed to accompany them.

As the revised International Entrepreneur Rule takes effect, USCIS is expected to provide further guidance on the application process and documentation requirements for entrepreneurs seeking to benefit from the program. The agency will also monitor the program's implementation and impact, making adjustments as necessary to ensure that it achieves its intended goals of attracting and retaining international talent, spurring innovation, and promoting economic growth.