The U.S. Citizenship and Immigration Services (USCIS) has recently announced significant updates to the International Entrepreneur Rule (IER), which will take effect on October 1, 2024. These updates involve increases in the investment and revenue thresholds that entrepreneurs must meet to qualify for this program. Read on and reach out to a knowledgeable New York immigration lawyer from the Lightman Law Firm to learn more about the recent update.
What is the International Entrepreneur Rule?
The International Entrepreneur Rule, established in 2017, allows the Department of Homeland Security (DHS) to use its parole authority to grant noncitizen entrepreneurs a temporary stay in the United States. This program is designed for those who demonstrate the potential for rapid business growth and job creation through their startups. The rule enables these entrepreneurs to work for their startup entity during their authorized stay. Additionally, spouses of these entrepreneurs, if granted parole, may apply for employment authorization in the United States.
What Are the New Threshold Requirements?
As of October 1, 2024, USCIS will implement the first automatic adjustment of investment and revenue thresholds since the rule’s inception. These changes, which are required every three years to account for inflation, will affect both initial applications and requests for extensions under the IER.
Initial Application Requirements
To qualify for an initial period of authorized stay under the IER, entrepreneurs must now demonstrate that their startup entity has substantial potential for rapid growth and job creation. This can be shown by meeting one of the following criteria:
- A minimum of $311,071 in qualified investments from qualifying investors (up from $264,147).
- At least $124,429 in qualified government awards or grants (previously $105,659).
If these financial thresholds are only partially met, entrepreneurs may present alternative reliable and compelling evidence demonstrating the startup’s potential.
Requirements for an Extension
For those seeking an additional period of authorized stay, the requirements have also increased:
- The startup must have received a total of $622,142 in qualified investments, government grants, or a combination thereof (previously $528,293).
- Alternatively, the startup must have created at least five qualified jobs.
- Another option is for the startup to have achieved at least $622,142 in annual revenue (up from $528,293) and averaged 20% or more in annual revenue growth.
Who Qualifies as an Investor?
The IER defines a “qualified investor” as an individual or organization with a history of substantial investments in successful startup entities. The new thresholds for qualified investors are as follows:
An investor must have invested at least $746,571 (up from $633,952) in startups over the past five years.
The startups in which the investor participated must have either created at least five jobs each or generated $622,142 in revenue with 20% average annual revenue growth.
What Are the Implications of These Changes?
These adjustments reflect the USCIS’s commitment to ensuring that the IER remains relevant and effective in an ever-evolving economic landscape. The increased thresholds may seem daunting, but they align with the growing costs of launching and scaling a business in the U.S. For entrepreneurs, these changes underscore the importance of presenting a well-documented case that clearly demonstrates a startup’s potential for significant economic impact.
