Updated: Aug 03, 2024
The U.S. Citizenship and Immigration Services (USCIS) has announced an update to the International Entrepreneur Rule, raising investment and revenue thresholds for foreign entrepreneurs starting businesses in the U.S. Effective October 1, 2024, these changes aim to attract more innovative startups and boost the economy.
With the investment threshold increased to $311,071, and higher benchmarks for revenue and job creation, the program seeks startups with significant growth potential. These updates reflect a strategic shift in U.S. immigration policy, highlighting the role of entrepreneurship in driving economic success.
The International Entrepreneur Rule (IER), established in January 2017, aims to attract foreign entrepreneurs to the U.S. by allowing them to start and grow businesses that contribute to the economy.
The rule focuses on fostering innovation and job creation by providing a pathway for international talent to launch their startups in the United States.
Initially challenged by the Trump administration, the rule was kept alive by a court ruling and has since received renewed support from the Biden administration as part of a broader effort to strengthen the U.S. economy through international entrepreneurship.
Despite its potential, the IER has faced limited participation, with only 94 applications since FY 2021, resulting in 26 approvals.
Recognizing this, the U.S. Citizenship and Immigration Services (USCIS) recently updated the investment and revenue thresholds to better reflect current economic conditions and encourage more entrepreneurs to participate.
By increasing these requirements, USCIS hopes to attract high-potential startups that can drive significant economic growth and innovation in the U.S.
The U.S. Citizenship and Immigration Services (USCIS) has introduced updated investment and revenue thresholds for the International Entrepreneur Rule (IER), effective October 1, 2024. These changes are designed to attract foreign entrepreneurs with startups that demonstrate strong potential for growth and job creation.
The new requirements reflect the evolving economic landscape and aim to enhance the program's impact by ensuring that participating startups are well-positioned to contribute meaningfully to the U.S. economy.
Foreign entrepreneurs must now secure an investment of at least $311,071, an increase from the previous threshold of $264,147. This investment can come from qualified U.S. investors, such as venture capital firms, angel investors, or other accredited investors with a proven track record of supporting successful startups.
Additionally, startups must demonstrate that they have received at least $124,429 in government awards or grants, up from the previous requirement of $105,659. This increase aims to ensure that startups are well-capitalized and have the financial resources necessary to scale their operations effectively.
For entrepreneurs seeking a renewal of their stay under the IER, their startups must meet the following criteria:
Investment: At least $622,142 in investments, up from $528,293.
Job Creation: Creation of at least five full-time jobs for U.S. workers.
Revenue: Achieving an annual revenue of at least $622,142, increased from $528,293.
These requirements underscore the program's focus on fostering economic growth and job creation, ensuring that participating startups deliver tangible benefits to the U.S. economy.
The USCIS has also updated the criteria for investors, emphasizing the importance of experienced and successful backers:
Minimum Investment: Investors must have invested at least $746,571, an increase from $633,952, in startups over the past five years.
Success Metrics: At least two of the investor's backed startups must have created at least five jobs each or generated $622,142 in revenue with an average annual growth of at least 20%.
To participate in the International Entrepreneur Rule (IER) program, foreign entrepreneurs must meet specific eligibility criteria designed to ensure that their startups can significantly benefit the U.S. economy.
Entrepreneurial Involvement and Experience
Entrepreneurs must have a significant role in the startup, demonstrating that they are well-positioned to substantially grow and expand the business. This involves being actively engaged in the operations of the startup and holding a critical role that directly influences the company's success.
The entrepreneur should also have a proven track record in entrepreneurship or business leadership that supports their ability to drive growth and innovation.
The startup must have been established within the last five years and must be legally registered and operating in the United States. This requirement ensures that the business is relatively new, allowing it to capitalize on the innovative ideas and strategies that foreign entrepreneurs bring to the U.S. market.
Up to three entrepreneurs per startup can be eligible for the IER program, allowing multiple founders to participate and contribute to the business's growth. This provision recognizes that startups often require a team of co-founders with diverse skills and expertise to succeed.
Spouses of qualifying entrepreneurs can apply for work authorization, enabling them to work in the U.S. during the entrepreneur's stay. However, children of entrepreneurs are not eligible for work authorization under the IER program.
This aspect of the rule supports family stability and provides opportunities for spouses to contribute economically while residing in the U.S.
Entrepreneurs can initially receive a stay of up to 2.5 years to oversee and grow their business in the U.S. If the startup demonstrates continued growth and provides a significant public benefit through substantial increases in capital investment, revenue, or job creation, an extension of up to an additional 2.5 years may be granted.
This extension underscores the program's commitment to supporting startups that make meaningful contributions to the U.S. economy.
The updated investment and revenue thresholds under the International Entrepreneur Rule (IER) are set to significantly impact both investors and the U.S. economy.
By raising these benchmarks, the U.S. Citizenship and Immigration Services (USCIS) aims to attract high-potential startups that can drive economic growth and job creation.
The new requirements encourage the involvement of experienced investors by mandating a minimum investment of $746,571 over the past five years. These investors must have a history of supporting successful startups that have created jobs or generated substantial revenue.
This focus ensures that participating entrepreneurs receive the necessary resources and expertise to thrive in the competitive U.S. market.
By emphasizing job creation and economic impact, the updated IER thresholds aim to bolster the U.S. economy. Startups must create at least five full-time jobs for U.S. workers, contributing to local communities and supporting broader economic resilience.
This focus on job creation aligns with the program's goal of fostering innovation and maintaining the U.S.'s global leadership in entrepreneurship.
The revised IER program enhances the U.S.'s attractiveness as a destination for international entrepreneurs, positioning it ahead of other countries with similar initiatives.
By providing a clear pathway for foreign talent to establish businesses in the U.S., the program boosts global competitiveness and encourages collaboration between domestic and international companies.
The emphasis on high-potential startups promises long-term economic benefits, including increased tax revenues, technological advancements, and improved market competitiveness.
By attracting innovative entrepreneurs, the IER contributes to a more vibrant and dynamic U.S. economy that supports diverse industries and sectors.
Navigating the application process for the International Entrepreneur Rule (IER) program requires a thorough understanding of the steps involved and the associated timelines.
Prepare the Business Plan: Develop a comprehensive business plan that outlines the startup’s mission, vision, potential for growth, and economic impact. This plan should highlight how the startup meets the program’s requirements for investment, job creation, and revenue.
Gather Required Documentation: Collect all necessary documentation, including evidence of investment, revenue, and job creation. This may involve providing financial statements, investor agreements, and proof of the startup's legal status in the U.S.
Submit Form I-941: Complete and submit Form I-941, Application for Entrepreneur Parole, to USCIS. This form serves as the official application for consideration under the IER program. It requires detailed information about the entrepreneur, the startup, and the potential economic benefits.
Pay Application Fees: Ensure all applicable fees are paid upon submission of the application. The fee structure is designed to cover the costs associated with processing and evaluating the application.
Biometric Appointment: Schedule and attend a biometric appointment at a USCIS Application Support Center. This step involves providing fingerprints, photographs, and other necessary biometric data as part of the application process.
Demonstrate Continued Growth: To apply for a renewal, entrepreneurs must demonstrate that their startup continues to meet the program's criteria. This includes evidence of substantial increases in investment, revenue, or job creation since the initial application.
Submit Renewal Documentation: Provide updated documentation that reflects the startup’s progress and achievements. This may include updated financial statements, proof of additional investments, and documentation of job creation.
Complete Renewal Form: Fill out the required renewal forms and submit them along with any supporting documents to USCIS. The renewal application process is crucial for extending the entrepreneur’s stay and continuing the startup’s growth trajectory in the U.S.
Initial Application Processing: The processing time for initial applications under the IER program can vary but typically ranges from 3 to 6 months. This timeframe allows USCIS to thoroughly evaluate the application and determine eligibility.
Renewal Application Processing: Renewal applications generally take 2 to 4 months to process. Entrepreneurs are encouraged to submit their renewal applications well in advance of their current stay’s expiration to avoid any disruptions.
Incomplete Documentation: One of the most common mistakes is failing to provide complete and accurate documentation. Entrepreneurs should ensure all forms are filled out correctly and all supporting documents are included.
Insufficient Evidence of Economic Impact: Entrepreneurs must clearly demonstrate the potential economic benefits of their startup. This includes providing robust evidence of investment, job creation, and revenue generation.
Missing Deadlines: Meeting all deadlines for application submission, biometric appointments, and renewal applications is critical. Missing deadlines can result in delays or denial of the application.
The updated thresholds for the International Entrepreneur Rule (IER) open new doors for foreign entrepreneurs eager to establish and grow their businesses in the United States.
By raising investment and revenue requirements, the USCIS aims to attract startups with strong potential for innovation and job creation, reinforcing the U.S. as a leader in global entrepreneurship.
For entrepreneurs, understanding these new requirements and preparing a strong application is crucial. By highlighting their startup’s unique contributions to the economy, they can take advantage of this opportunity to drive growth and innovation in the U.S., benefiting both their businesses and the broader economy.
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