The International Entrepreneur Rule (IER) provides a unique opportunity for foreign entrepreneurs to work in the United States while growing and scaling their businesses. Unlike traditional visa categories, the IER offers parole status, allowing qualified entrepreneurs temporary permission to reside in the U.S. if their business demonstrates substantial potential to benefit the U.S. economy, create jobs, and spur innovation.
This guide explains the eligibility criteria, step-by-step application process, required documentation, and practical tips for a successful application under the International Entrepreneur Rule.
What Is the International Entrepreneur Rule?
The IER is not a visa but a temporary stay granted by the Department of Homeland Security (DHS) under its discretionary parole authority. It allows foreign entrepreneurs to reside in the U.S. for an initial 30 months, with the option to extend for another 30 months, totaling 5 years.
This program is particularly valuable for startups and entrepreneurs who may not meet the requirements for other visa categories, such as the H-1B or EB-5. It is designed to foster economic growth by enabling talented entrepreneurs to launch and expand their businesses in the U.S.
Benefits of the International Entrepreneur Rule
- Economic Opportunity: Enables entrepreneurs to access U.S. markets, investors, and resources.
- No Annual Caps: Unlike other visa programs, there are no numerical limits on how many entrepreneurs can be granted parole under IER.
- Family Inclusion: Entrepreneurs can bring their spouse and children under 21. Spouses are also eligible to apply for work authorization.
- Flexibility: Entrepreneurs retain the ability to grow their business without being tied to a specific employer or sponsor.
Eligibility Criteria
To qualify for parole under the IER, applicants must meet several stringent requirements:
1. Entrepreneurial Role
- The applicant must own at least 10% of the startup at the time of application.
- They must have a central and active role in the company, such as a founder or executive directly involved in decision-making and operations.
2. Qualifying Business
The startup must meet these criteria:
- Be a U.S.-based entity established within the past 5 years.
- Demonstrate substantial potential for rapid growth, innovation, or job creation.
3. Substantial Investment or Funding
The business must show financial backing through:
- Receipt of at least $250,000 from qualified U.S. investors, such as venture capitalists or accredited angel investors.
- OR receipt of $100,000 or more in government grants or awards from federal, state, or local entities.
Applicants may also demonstrate significant growth potential through alternative evidence if they fall slightly short of these thresholds.
Required Documentation
To strengthen your IER application, prepare the following documents:
- Proof of Ownership: Articles of incorporation, cap tables, or equity agreements showing your stake in the business.
- Operational Role:
- Job description outlining your active and central role.
- Organizational chart demonstrating your position in the company.
- Business Documentation:
- Business plans highlighting market potential and scalability.
- Contracts, financial statements, or agreements showing ongoing operations.
- Funding Evidence:
- Investment agreements, term sheets, or bank statements reflecting qualifying investments.
- Grant award letters from U.S. government agencies.
- Proof of Innovation:
- Patents, trademarks, or intellectual property filings.
- Product development timelines or prototypes.
- Personal Identification: Valid passport and any existing U.S. immigration documents (if applicable).
Step-by-Step Application Process
Step 1: Prepare and Submit Form I-941
The first step is completing Form I-941 (Application for Entrepreneur Parole). This form is used to request parole under the IER and must be submitted to USCIS.
Filing Fee:
- $1,200 for the application.
- $85 biometric services fee for each applicant.
Step 2: Gather Supporting Documents
Collect and organize all necessary documents that demonstrate your eligibility. These include evidence of ownership, business operations, and substantial investment. Ensure that your documentation is clear, well-organized, and compelling.
Step 3: Biometrics Appointment
After submitting Form I-941, USCIS will notify you of a required biometric services appointment. During this appointment, your fingerprints, photograph, and signature will be collected for background checks.
Step 4: DHS Decision
Once all materials are submitted and reviewed, DHS will issue a decision on your application.
Processing Time:
- Decisions typically take between 90 and 120 days, but delays are possible depending on application volumes.
Step 5: Travel to the U.S. Upon Approval
If approved, you will receive a notice granting parole and authorization to travel to the United States. Upon arrival, present your parole documents to Customs and Border Protection (CBP) for final inspection.
Step 6: Build and Operate Your Business
Once in the U.S., you can focus on building your startup. Parole allows you to actively engage in business operations and strategic decision-making.
Step 7: Apply for Extension
To continue growing your business beyond the initial 30 months, you may apply for a parole extension for an additional 30 months. To qualify for the extension, your startup must:
- Remain operational and demonstrate ongoing growth.
- Continue meeting funding or revenue thresholds.
- Employ U.S. workers or show job creation potential.
Challenges in the Application Process
1. Meeting Funding Thresholds
- Many startups struggle to secure the required $250,000 in U.S. investment or $100,000 in grants.
- Solution: Seek early-stage funding from accredited investors or participate in U.S.-based startup accelerator programs.
2. Demonstrating Growth Potential
- Startups that lack financial performance or innovation metrics may find it difficult to prove substantial growth potential.
- Solution: Highlight key achievements, such as intellectual property filings, product launches, or customer acquisition metrics.
3. Unfamiliarity with U.S. Legal Systems
- Foreign entrepreneurs often encounter challenges navigating U.S. immigration and business regulations.
- Solution: Work with immigration attorneys and business advisors experienced in IER cases.
Transitioning to Other Immigration Options
While the IER is a temporary status, entrepreneurs may consider transitioning to permanent residency or other visa categories:
- EB-2 National Interest Waiver (NIW): For entrepreneurs whose business has a significant impact on the U.S. economy.
- EB-5 Immigrant Investor Program: Requires an investment of at least $800,000 in a targeted employment area.
- O-1 Visa for Extraordinary Ability: For entrepreneurs with exceptional achievements in their field.
Benefits for Family Members
Spouses and children under 21 can accompany the entrepreneur to the U.S. under derivative parole.
Spousal Work Authorization
Spouses can apply for employment authorization by filing Form I-765 (Application for Employment Authorization) after entering the U.S.
Practical Tips for Success
- Prepare Thoroughly: Collect all required documents well in advance and ensure they are accurate and complete.
- Seek Professional Assistance: Work with an immigration attorney or consultant familiar with the IER to strengthen your case.
- Stay Updated: Keep track of changes in U.S. immigration policies that may impact the IER.
- Leverage Networking Opportunities: Build connections with U.S. investors and accelerators to bolster your business case.
Conclusi0n
The International Entrepreneur Rule offers an invaluable opportunity for foreign entrepreneurs to launch and grow their startups in the U.S. By meeting the program’s eligibility requirements, presenting strong evidence of business potential, and navigating the application process with diligence, entrepreneurs can establish a thriving business in one of the world’s most dynamic markets.
For those willing to invest the time and effort, the IER provides a powerful platform to contribute to the U.S. economy while pursuing entrepreneurial ambitions.