By Angel Feng

US Citizenship and Immigration Services (USCIS) published a final rule adjusting the investment and revenue thresholds for International Entrepreneur Parole program (IEP) eligibility, effective October 1, 2024. 

The IEP program gives certain foreign national entrepreneurs another option for temporary authorization in the United States to grow a business and work for that business. Although parole authorization is not a visa status, it affords foreign entrepreneurs authorization to enter (parole into) the US, remain in lawful status, and work to grow their businesses and make contributions to the US economy, especially by creating jobs.

Background

The original IEP rule was promulgated at the end of the Obama administration. However, the Trump administration tried to remove the regulation and blocked its implementation by delaying the effective date of the rule. A lawsuit ensued, but very few IEP applications were adjudicated by USCIS. 

In May 2021, DHS announced the continuation of the IEP program. Since that time, applications have been adjudicated by USCIS, albeit at a slow pace. For additional background information about the IEP program, please see our April 22, 2021 alert.

The latest final rule adjusts the minimum investment and revenue required to qualify for the program, effective October 1, 2024.

Eligibility for the International Entrepreneur Parole Program

To qualify for the IEP program, a foreign national must:

• Have established a US start-up business within five years before the application for parole;

• Hold at least a 10% ownership interest in the start-up; and

• Play an active and central role in the operations of the business, and not merely be an investor. 

Key Thresholds and Requirements

Effective October 1, 2024, the start-up must have received a capital investment of at least $311,071 from qualified US investors or at least $124,429 in grants or awards from qualifying US federal, state, or local government entities.

For applications filed to USCIS on or before September 30, 2024, the start-up must meet the existing thresholds of a capital investment of $264,147 from qualified US investors or $105,659 in grants or awards from qualifying US federal, state, or local government entities.

For capital investment, a qualified investor is defined as an individual who is a US citizen or lawful permanent resident (LPR) of the US, or an organization that is located and operating in the US and is majority owned and controlled by US citizens or US LPRs. The investor organization must also have regularly made substantial investments in start-up entities that subsequently exhibited substantial growth during the preceding 5 years. See the IEP regulations for more details.

Alternatively, an applicant who does not meet the criteria for investment or government grants may qualify based on compelling alternative evidence of the start-up entity’s potential for rapid growth and job creation.

Benefits of the International Entrepreneur Parole Program

Entrepreneurs approved for parole may enter the US for an initial period of 30 months, and may apply for an additional 30 months of parole for a total of five years to support the growth of the start-up business. Ultimately, the goal of the business should be to create jobs in the United States.

A spouse and minor children are generally eligible for the same period of parole as the principal applicant. Spouses may also qualify for employment authorization, but a separate application must be submitted.

Notably, parole is not a visa status. As a result, if the entrepreneur is already in the US, he or she would have to travel out of the US, attend an appointment at a US Consular Post, and request to be paroled into the US. IEP parole allows the entrepreneur to live and work in the United States, but it does not lead to or allow for a change to another visa status from within the US.

Eligibility for the Extension of the International Entrepreneur Parole Program

To extend parole beyond the initial 30 months, the paroled entrepreneur must demonstrate some progression in terms of job growth, investment, potential for future growth, or some combination of these criteria. The entrepreneur would have to submit evidence that:

• The entrepreneur has at least a five percent ownership interest at the time of the re-parole application and continues to play a central role in the business;

• The business continues to operate; and

• The business has created at least five qualifying jobs. 

Key Thresholds and Requirements

Effective October 1, 2024, received during the parole period at least $622,142 ($528,293 if the application is filed by September 30, 2024) in qualifying investments, government grants, or awards, or a combination thereof; or

Effective October 1, 2024, generated at least $622,142 ($528,293 if the application is filed by September 30, 2024) in US revenue and averaged 20 percent in annual growth during the initial parole period.

Application Process for the International Entrepreneur Parole Program

Processing times for the IEP program have been lengthy and unpredictable. USCIS generally approves applications for applicants who meet the eligibility criteria.

An application for International Entrepreneur Parole must include the following:

• USCIS fee of $1,200;

• Form I-941, Application for Entrepreneur Parole;

• Organizational documents;

• Company financial or tax records;

• Evidence of at least 10 percent ownership interest;

• Proof that the entrepreneur/applicant has a central and active role in the start-up entity;

• Evidence of a qualified investment, award, or grant; and

• Evidence that the start-up entity will create a significant public benefit.

For further guidance, please contact your Mintz immigration attorney.