U.S. Citizenship and Immigration Services (USCIS) released new information on its website about the International Entrepreneur Rule's (IER) eligibility criteria and acceptable evidence. It also announced updates to investment and revenue requirements for entrepreneurs to qualify for an authorized stay, known as parole, under the IER. Based on the public benefit their startup entities provide, the IER allows foreign entrepreneurs of U.S. startups formed in the last five years to remain in the United States for up to five years to work at their startup if the startup meets specific criteria such as funding milestones or job creation. When submitting the initial application, an entrepreneur can be in the United States or abroad but must have at least 10% ownership in the startup.
On Oct. 1, 2024, USCIS's revised investment and revenue thresholds take effect to align with economic inflation rates. The initial application will require entrepreneurs to show the startup received qualified investments of at least $311,071 (up from $264,147) or government grants of at least $124,429 (up from $105,659) to substantiate the startup's potential for growth and job creation. In instances where the startup partially meets the investment or award criteria, applicants may present alternative evidence to demonstrate their startup's growth potential. Depending on the nature of the startup and its industry, alternative evidence can include the number of customers; investments or fundraising success using alternative funding platforms including crowdfunding platforms; social impact and national scope of the startup; positive effects on the startup's locality or region; the applicant's academic degrees; the applicant's prior success in operating startups as shown by patented innovations, annual revenue, job creation, or other factors; or selection of the startup to participate in one or more established reputable startup accelerators or incubators.
For entrepreneurs seeking an extension and second period of authorized stay, USCIS will require the startup to have at least $622,142 (up from $528,293) in qualified investments or government funds; creation of a minimum of five new qualified jobs within the startup; or annual revenues of $622,142 (up from $528,293) or greater within the United States with an average annual revenue growth of at least 20%.
Further, USCIS updated the criteria for qualified investors to require a history of substantial investment in successful startups. The investor must have invested at least $746,571 (up from $633,952) in startups within the last five years for equity or similar stakes; and after such investment, at least two startups must have each created at least five jobs or generated $622,142 (up from $528,293) in revenue with an average annual growth of at least 20%. Only an investor that meets the definition of qualified investor can make a qualified investment, and no alternative evidence is accepted.
Although investment and revenue thresholds will increase effective Oct. 1, 2024, the USCIS application fee for entrepreneur applicants will remain the same. USCIS's recent updated guidance on the IER website intends to clarify the IER's requirements and to encourage eligible entrepreneurs to apply.
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