The Biden administration updated the International Entrepreneur Rule (IER) to make it more clear and transparent. This rule became effective at the end of the Obama administration. The IER aims to help foreign entrepreneurs come to the U.S. to start businesses. However, progress on the program slowed during the Trump administration.
International Entrepreneur Rule Overview
USCIS received only 94 applications under the IER since fiscal year 2021. Of those, 26 are approved, 28 denied, 19 withdrawn, and 21 cases are awaiting a response to a Request for Evidence (RFE). There is no backlog. There is an insufficient amount of data for denied applications to understand if there are misunderstandings or misinterpretation of the rule.
Under the IER, U.S. Citizenship and Immigration Services (USCIS) can grant parole to qualifying entrepreneurs. To qualify, applicants must show they can benefit the public, grow their business quickly, and create jobs. They also need to demonstrate investments and government grants totaling at least $264,147 and $105,659 respectively. If approved, entrepreneurs and their spouses receive employment authorization. Applications are reviewed by USCIS on a case-by-case basis.
Individuals may submit their initial application when living abroad or in the U.S. They 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 data, providing more detail as to qualifications and evidence for the entrepreneur visa. The updated information provides more detailed insights than previous explanations provided by USCIS. The Q&A section is extensive and provides answers 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
The IER could particularly benefit international students who want to stay in the U.S. after graduation to start businesses. This includes individuals who may not receive H-1B status. Many successful U.S. startups have had immigrant founders, highlighting the positive impact immigrants can have on the economy. If granted parole, entrepreneurs may eventually apply for permanent residence through employment-based first preference or second preference. Another option for individuals who qualify is to self-petition through the national interest waiver (NIW).
As always, we actively monitor ongoing updates to U.S. immigration policy. If you have questions about the international entrepreneur rule or any other U.S.-immigration related issue, please contact us. Our team of experienced professionals work with our clients every step of the way.