The U.S. Citizenship and Immigration Services (USCIS) is reviewing the requirements for investments and revenue thresholds under the International Entrepreneur Rule (IER). This review happens every three years, and it does not involve any changes to fees.

IER Background

The IER, published in 2017, by the Department of Homeland Security (DHS) to allow non-U.S. citizen entrepreneurs to stay in the U.S. temporarily. This is done on a case-by-case basis, granting noncitizen entrepreneurs a period of authorized stay if they can demonstrate significant public benefit through rapid growth and job creation.

If granted parole, the entrepreneur is given work authorization to work for their startup. Their spouse is also eligible to apply for work permit to work in the U.S. Currently, there is no backlog in processing new applications under the IER, so USCIS can handle applications quickly.

IER Investment and Revenue Threshold

The proposed updates include:

For the initial application, the required minimum investment from qualified investors would increase to $311,071, up from the current $264,147.

Additionally, the minimum amount of funding required from government awards or grants would rise to $124,429, up from $105,659.

If a startup does not meet these new minimums, it can still qualify by demonstrating substantial growth and job creation.

To apply for an authorized extended stay, they must prove the startup has either:

Received additional funding of at least $622,142 from a qualified source, up from the current minimum of $528,293.

Created at least five qualified jobs or achieved an annual U.S. revenue of $622,142 with an average 20% annual revenue, up from the current minimum revenue of $528,293.

Qualified investors must prove a history of substantial investment in successful startups. Investors must prove this by showing that in the previous 5 years, all of the following apply.

Investments in startups of a minimum of $746,571 in total. Investments must be made in exchange for equity or convertible securities that become equity. The minimum is currently $633,952.

At least two startup entities the investor has supported created a minimum of five qualified jobs or a minimum of $622,142 in revenue, with a minimum annualized growth rate of 20%. The current threshold is $528,293 in investment.

The final rule for the IER investment and revenue threshold will be published on July 25, 2024. The rule will take effect on October 1, 2024. Until then, the current lower thresholds will apply to applications submitted.

If you have questions about the International Entrepreneur Rule or these updates, feel free to contact us. We provide a comprehensive set of legal services tailored to companies of all sizes, ensuring they receive the guidance that best fits their specific company.