The International Entrepreneur Rule: A Comprehensive Guide
What is the International Entrepreneur Rule (IER)?
The IER allows foreign entrepreneurs to be paroled into the U.S. for up to 5 years (split into two 30-month terms) if they can demonstrate that their startup has the potential for rapid growth, job creation, and a significant public benefit to the U.S. economy.
Introduced in 2017, the IER fills a gap for startup founders who do not qualify for other visa categories like the H-1B or O-1 visas. It’s not a visa but a temporary status called “parole,” granted at the discretion of U.S. Citizenship and Immigration Services (USCIS).
Eligibility Requirements
To be approved for Form I-941 (“Application for Entrepreneur Rule”), founders must demonstrate:
- Qualified Entrepreneurship:
- Possession of a substantial ownership interest in the startup entity.
- Initial Parole: At least 10% ownership during the initial parole adjudication, decreasing but staying above 5% thereafter.
- A central and active role in the startup’s operations, leveraging knowledge, skills, or experience to facilitate growth.
- Possession of a substantial ownership interest in the startup entity.
- Qualified Startup:
- Formation of a U.S. business entity within the five years preceding the initial I-941 parole request.
- Lawful business operations, excluding entities primarily engaged in securities trading.
- Substantial potential for rapid growth and job creation.
- Example: A startup that has received $300,000 from U.S. venture capital firms and has hired 5 employees would meet this threshold.
- Public Benefit
To demonstrate significant public benefit, you must meet one or more of these thresholds:- Investment: Secure at least $264,147 from qualified U.S. investors.
- These could include venture capital firms, angel investors, or accelerators.
- Grants or Awards: Receive $105,659 from federal, state, or local government programs.
- Alternative Evidence: If you don’t meet the above criteria, you can provide other compelling evidence of the startup’s growth potential.
- This could include metrics like customer acquisition, revenue growth, or partnerships.
- Investment: Secure at least $264,147 from qualified U.S. investors.
Application Process
- Complete Form I-941
- File the Application for Entrepreneur Parole with USCIS.
- Include a $1,200 filing fee and $85 biometrics services fee.
- Submit Required Evidence
- Proof of your stake in the company (e.g., equity documents).
- A detailed description of your role in the business, along with evidence such as job descriptions or a board resolution.
- Formation documents, operational plans, and proof of revenue, if applicable.
- Documentation showing investment amounts, grant details, or other growth indicators.
Boundless Tip
USCIS recently updated their guidance for examples of acceptable evidence. Check out this new information below.
| Evidence Statement | Investor Term Sheet: Signed agreements outlining the investment amount, terms, and conditions from venture capital firms, angel investors, or accelerators. | Proof of Funding Transfers: Bank statements, wire transfer receipts, or other documentation showing the transfer of funds to the startup’s accounts. | Investor Accreditation: Documentation proving the investor is qualified under U.S. securities laws, such as a signed accreditation statement or portfolio details. |
Evidence of Government Grants or Awards | Grant Award Letters: Official letters detailing the grant amount, purpose, and agency name (e.g., Small Business Innovation Research (SBIR) grants). | Grant Disbursement Records: Evidence showing the transfer of awarded funds, such as deposit records or payment schedules. | Grant Application Results: A copy of the original grant application and the agency’s approval letter. |
Evidence of Business Operations and Legitimacy | Business Formation Documents: Articles of incorporation, bylaws, or a certificate of formation filed with state authorities. | Operational Records: Contracts with suppliers, leases for office space, or invoices for services. | Tax Filings: Federal or state tax documents demonstrating your business’s active status. |
Evidence of Active Entrepreneurial Role | Job Descriptions or Offer Letters: A detailed outline of your responsibilities, supported by internal company documents. | Board Resolutions: Official documentation from the company’s board appointing you to a leadership role, such as CEO, CTO, or COO. | Performance Metrics: Evidence of decisions or strategies you’ve implemented, such as product launches, hiring plans, or business growth milestones. |
Evidence of Growth Potential | Revenue Projections: Detailed financial forecasts supported by historical performance, if available. | Customer Contracts or Letters of Intent: Signed agreements or letters from potential customers indicating interest in your products or services. | Market Research: Reports demonstrating the size of your target market, growth trends, and competitive positioning. |
Alternative Evidence | Partnership Agreements: Agreements with established U.S. companies indicating collaboration or shared revenue potential. | Media Coverage: News articles, press releases, or awards showcasing your business’s impact or potential. | Letters of Support: Testimonials from industry experts, business partners, or economic development organizations attesting to your startup’s potential. |
International Entrepreneur Parole Application Process and Timing
If you qualify, you will submit Form I-941 to U.S. Citizenship and Immigration Services (USCIS). Once approved, founders need to obtain a “boarding foil’ from a U.S. consulate, which allows an airline to transport you to the United States.
Benefits for Family Members: Spouses and unmarried children under 18 can also be paroled into the U.S. Spouses can apply for an employment authorization document (EAD) through Form I-765 filing upon entry, while the founder is automatically permitted to work.
Founder Re-Parole Requirements: The Second 30-Month Approval
Founders can apply for a second 2.5-year period under the Entrepreneur Parole program by demonstrating:
- Qualified Entrepreneurship (Re-Parole):
- Possession of at least a 5% equity stake at the time of re-parole adjudication.
- Continuation of a central and active role in the startup’s operations.
- Qualified Startup (Re-Parole):
- Ongoing business operations, showcasing substantial potential for growth and job creation.
- Continued Public Benefit (Re-Parole):
- Options include an additional qualified investment of $500,000, creation of at least five qualified jobs, or generation of at least $500,000 in annual revenue in the U.S.
- An alternative option exists if thresholds cannot be fully met, requiring evidence of partial satisfaction along with compelling proof of the startup’s ability to meet growth and job creation goals.
Requirements Checklist for Entrepreneur Rule
FAQ’s for IER
Yes, you can apply for the International Entrepreneur Rule while outside the U.S. If approved, you will be granted parole to enter the country and establish your startup. You will need to visit a U.S. consulate or embassy for travel documentation after your application is approved.
If your startup ceases operations, fails to meet the eligibility criteria, or you no longer play a central and active role, your parole may be terminated. You must notify USCIS of any significant changes to your circumstances. If you wish to remain in the U.S., you’ll need to explore alternative immigration pathways.
Yes, co-founders can apply, provided they individually meet the requirements for ownership (at least 10% at the time of application) and have a central and active role in the company. Multiple co-founders from the same startup can apply, but each must meet the eligibility criteria independently.
Yes, certain businesses may not qualify. For example, companies engaged primarily in passive investment activities (e.g., real estate investment or trading in securities) are not eligible. The startup must demonstrate potential for rapid growth, innovation, and job creation.
Yes, but the U.S. operation must be a significant part of the business and demonstrate independent growth and job creation in the U.S. Any funding or grants you include as evidence should directly support the U.S. entity.
If your application is denied, USCIS will provide a notice explaining the reasons for denial. You may have the opportunity to reapply if you can address the issues raised, such as providing additional evidence or meeting eligibility thresholds. Consulting with an immigration attorney can improve your chances in a reapplication.
No, there is no limit to the number of times you can apply. However, each application must meet the eligibility criteria, and your startup must demonstrate its ability to provide a significant public benefit to the U.S. economy.
The IER is unique because it doesn’t require sponsorship or a specific visa category. Other options, like the E-2 investor visa or O-1 visa for individuals with extraordinary ability, often have stricter requirements or depend on nationality, while the IER focuses solely on startup potential and public benefit.
When the funding or grant thresholds are not met, USCIS evaluates other compelling evidence that demonstrates your startup’s potential for growth. Examples include:
• A significant number of paying customers or high revenue growth.
• Strong partnerships with U.S. companies or institutions.
• Industry recognition, such as awards or media coverage.
USCIS will look at the totality of evidence to decide if your business provides a significant public benefit.
No, time spent under parole does not count toward permanent residency or the five years required for U.S. citizenship. However, the IER may provide a pathway to pursue other immigration options that could lead to permanent residency.
Yes, you can travel internationally, but re-entry to the U.S. is not guaranteed. You’ll need to request advance parole before traveling. If you leave the U.S. without this, your parole may be revoked.
You must notify USCIS of any changes to your address or the location of your startup. Failure to update your information could result in termination of your parole.
Yes, the funds used to meet the eligibility criteria must be directly tied to the U.S. startup’s operations. For example, investments must support business activities such as hiring employees, scaling production, or expanding market reach. Misusing funds could jeopardize your parole.
No, loans or personal savings do not count toward the investment or funding thresholds. Only capital from qualified U.S. investors or government grants is eligible.
No, parole is not the same as a visa or legal status. While on parole, you are allowed to remain in the U.S. temporarily for the specific purpose of running your startup. Violating the terms of your parole or failing to maintain your startup’s eligibility could result in termination and removal proceedings.
No, the IER application is tied to the specific startup you identified in your application. If you wish to apply for a different company, you will need to file a new Form I-941 and provide updated evidence.