New information released by the Biden administration aims to boost the International Entrepreneur Rule (IER). Greater transparency and clarity are provided in the entrepreneur visa update. The rule went into effect during the end of the Obama administration. The program stalled during the Trump administration.

International Entrepreneur Rule Overview

Since FY 2021, USCIS received only 94 applications under the IER. Of those, 26 are approved, 28 denied, 19 withdrawn, and 21 cases are awaiting a response to a Request for Evidence (RFE). No backlog exists. For denied applications, there is an insufficient amount of data to understand if there are misunderstandings or misinterpretation of the rule.

Per the International Entrepreneur Rule (IER), U.S. Citizenship and Immigration Services (USCIS) has the option to grant parole to qualifying foreign entrepreneurs. The qualifications include a demonstrated ability to significantly benefit the public, proof of rapid business growth, and job creation via their business. Further, a minimum of $264,147 in qualified investments from qualifying investors must be proven, with a minimum of $105,659 in qualifying government grants or awards. Approved entrepreneurs receive employment authorization, along with their spouse. USCIS reviews applications on a case-by-case basis.

Individuals have the option to submit their initial application when living abroad or in the U.S. Individuals must have a minimum of 10% ownership stake in the venture to apply. Qualifying investors cannot be the applicant, an immediate relative of the applicant, or an organization where the applicant or their immediate relatives have an ownership interest.

Updated Guidance Details

USCIS provided new information on July 12, 2024, providing greater detail as to qualifications and evidence for the entrepreneur visa. The updated information provides more extensive insights than previous explanations provided by USCIS. Among the extensive Q&A section, answers are provided as to what types of evidence qualify, the effect of not reaching the investment thresholds, and guidance as to providing supplemental information.

Immigrant Impact on Startups

Based on recent research, a study found that over half of the startups in the U.S. valued at $1 billion or more had at least one immigrant founder. Further, an estimated 25% of companies valued at $1 billion or more had an international student as a founder. Effective application of the IER may provide international students with entrepreneurial skills an option to remain in the U.S. after graduation. This includes individuals who may not receive H-1B status. Qualifying entrepreneurs may qualify for up to a five-year parole status. Following that, qualifying individuals could apply for permanent residence through employment-based first preference or second preference. Another option is to self-petition through the national interest waiver, if the individual qualifies.

As always, ILBSG actively monitors ongoing updates to U.S. immigration policy. If you have questions about the international entrepreneur rule or any other U.S.-immigration related issue, contact us. Our team of experienced professionals ensure our clients get the right advice for their particular situations.

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