The United States has revised its International Entrepreneur Rule (IER) in an effort to draw more foreign entrepreneurs to its shores.
Under the updated guidelines, foreign startup founders now have the potential to extend their stay in the US to five years, contingent upon demonstrating their venture’s public benefit. Initially granted for two-and-a-half years, extensions may be possible based on milestones such as funding and job creation.
Administered by the Department of Homeland Security (DHS), the IER allows noncitizen entrepreneurs to apply for authorized stay in the US, known as “parole,” provided they can prove significant public benefit through their business ventures. This parole status permits exclusive work for their startup. Eligibility extends to the spouse of the entrepreneur but does not include their children.
Entrepreneurs can apply whether they are residing abroad or are already within the US. Startups must have been established in the US within the last five years.
These entities must demonstrate potential for rapid growth and job creation, supported by investments totaling at least $264,147 from qualifying investors, $105,659 in government awards, grants, or other credible evidence.
Once granted, the initial parole period can extend up to 2½ years. Extensions through re-parole, contingent upon meeting additional financial or job creation benchmarks, can allow for a total stay of up to five years. Each startup can have up to three entrepreneurs eligible for parole under this rule.
Additionally, spouses of the entrepreneurs may seek employment authorization upon entry into the US under parole conditions, but this benefit does not extend to their children.
To qualify under the IER for stay in the US, entrepreneurs must fulfill specific ownership and operational roles within their startup entities:
Ownership: They must hold at least 10% ownership in the startup at the time of the initial application.
Role: They must actively participate in the day-to-day operations and decision-making processes of the startup.
The startup must be a legally registered business entity operating within the US. It must have been established within the five years preceding the initial parole application. The business must demonstrate substantial potential for rapid growth and job creation.
To demonstrate potential for growth and job creation, startups must have received:
A qualified investment of at least $264,147 from a qualifying investor, or A qualified award or grant of at least $105,659 from a US federal, state, or local government entity. Alternatively, credible evidence of growth potential can also be submitted.
Spouses may apply for parole and subsequent employment authorization using Form I-765. Children under 21 years of age may apply for parole but are not eligible for employment authorization.
Initially, parole can be granted for up to 2½ years. If eligible and approved for re-parole based on specified benchmarks, entrepreneurs can extend their stay for another 2½ years, totaling a maximum of five years.
Entrepreneurs can apply for parole from outside the US if they meet all criteria. While in the US under parole, they may apply for immigrant or nonimmigrant status if eligible. However, parole itself does not allow for adjustment of status within the US, potentially requiring travel abroad for visa processing.
Entrepreneurs currently in nonimmigrant status (e.g., B-1 or F-1) can apply for IER parole. Approval may necessitate departure from the US for re-entry under parole conditions.
Overstaying nonimmigrant status can result in immigration consequences, including removal or inadmissibility.
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