Impact of the New USCIS Rule on Applicants
Starting October 1, 2024, U.S. Citizenship and Immigration Services (USCIS) has increased the investment and revenue thresholds for the International Entrepreneur Rule (IER). This change, announced in a final rule, is an automatic adjustment to account for inflation, as required by the program’s original regulations. Despite the higher financial requirements, the application fee for the program remains unchanged. USCIS also noted that it currently has no backlog for IER applications.
The International Entrepreneur Rule Explained
The IER is a program that allows eligible foreign entrepreneurs to receive a period of parole—temporary permission to stay in the United States—to start and scale their businesses. It was created to attract individuals who can provide a significant public benefit to the U.S. economy. This benefit is typically shown through rapid business growth and job creation, supported by initiatives like those from U.S. Citizenship and Immigration Services.
To qualify, an entrepreneur must:
- Have a substantial ownership stake of at least 10% in a U.S. startup.
- Be actively involved in the business’s operations.
- The startup must have been formed within the last five years.
The IER is a discretionary program, and a grant of parole is made on a case-by-case basis. It’s a useful option for entrepreneurs who don’t qualify for traditional visa programs like the H-1B or the E-2 investor visa.
New Thresholds and Requirements
The new final rule, effective October 1, 2024, has adjusted the required investment and revenue benchmarks for inflation. These changes apply to applications filed on or after this date, as managed by U.S. Citizenship and Immigration Services.
For an initial parole application, entrepreneurs must now demonstrate one of the following:
- A qualified investment of at least $311,071 from one or more qualified U.S. investors.
- At least $124,429 in qualifying government awards or grants from a U.S. federal, state, or local government entity.
To receive re-parole—an extension of up to 2.5 years—entrepreneurs must show that their business has continued to provide a significant public benefit. This can be demonstrated by meeting one of these new benchmarks:
- Receiving at least $622,142 in additional qualified investments or government grants during the initial parole period.
- Creating at least five qualified jobs.
- Achieving an annual revenue of at least $622,142 with an average annual growth of 20%.
The new rule also updates the criteria for a “qualified investor.” An investor must have a history of investing at least $746,571 in startups over the past five years. After their investments, at least two of those startups must have each created at least five jobs or generated a revenue of at least $622,142 with an annual growth of at least 20%.
USCIS has stated that the Form I-941 application fee will not change, providing a small bit of stability for applicants despite the increased financial hurdles. The agency’s confirmation that there’s no backlog for IER applications is also good news, suggesting that cases under U.S. Citizenship and Immigration Services are being processed in a timely manner.
