The United States has introduced the International Entrepreneur Rule (IER) for non-citizens who are entrepreneurs seeking to establish and grow their startups in the US.
The aim of the International Entrepreneur Rule (IER) is to provide a valuable opportunity for non-citizen entrepreneurs from any country including Nigeria to contribute to the US economy by establishing and growing their startups.
Applicants from outside the United States therefore need to meet the specified criteria and follow the application process in order to benefit from a temporary stay in the US, whilst fostering innovation and job creation.
Here are the details of the IER, its eligibility requirements, and the application process.
About the International Entrepreneur Rule (IER)
The IER is a program that grants temporary parole status to foreign entrepreneurs who meet specific criteria.
This parole allows them to live and work in the United States for up to five years to develop and scale their businesses.
These conditions include:
- Ownership: The entrepreneur must own at least 10% of the startup at the time of the initial application and at least 5% at the time of re-parole.
- Startup Requirements: The startup must be less than five years old and established as a US entity.
- Investment: The startup must have received at least $250,000 in capital from qualified US investors or $100,000 in government grants or awards.
The Department of Homeland Security (DHS) grants an authorized stay, technically called ‘parole,’ on a case-by-case basis. Entrepreneurs granted parole can work only for their startup.
Additionally, the spouse and children of the entrepreneur may also be eligible for parole, with the spouse able to apply for employment authorization upon entry to the US.
Threshold Criteria for IER
To qualify for the IER, entrepreneurs and their startups must meet the following threshold criteria:
- Entrepreneur’s Residence: Entrepreneurs can be either living abroad or already in the US.
- Startup Formation: The startup must have been formed in the US within the past five years.
- Investment and Grants: The startup must demonstrate at least $264,147 in qualified investments from investors or at least $105,659 in government awards or grants.
- Initial Parole Period: Entrepreneurs may be granted an initial parole period of up to 2.5 years, with a possible extension of another 2.5 years based on additional funding, job creation, or revenue benchmarks.
- Number of Entrepreneurs: Up to three entrepreneurs per startup can be eligible for parole under the IER.
Detailed Criteria for Entrepreneurs and Startups
- Ownership Interest: Entrepreneurs must have a substantial ownership interest in the startup.
- Qualified Investments: Investments must be in the form of equity, convertible debt, or other security convertible into equity.
- Growth Potential: The startup should show substantial potential for rapid growth and job creation.
Application Process
The application process is as follows:
- Entrepreneurs must file Form I-941 for Entrepreneur Parole, along with a $1,200 fee.
- The spouse and children (unmarried minors under 21) must file Form I-131, Application for Travel Document, with a $630 fee and supporting evidence.
- Currently, Form I-941 is not eligible for premium processing. However, applicants can request expedited processing at the discretion of USCIS.
- If the application is approved, entrepreneurs outside the US must complete parole processing at a US embassy or consulate. Those within the US will receive travel documentation by mail and must depart and re-enter the US for a final parole determination.
- Entrepreneurs approved under the IER are authorized to work for their startup without needing a separate work authorization form. However, this benefit is distinct from a visa, as it allows a one-time entry into the US. Entrepreneurs can apply for ‘advance parole’ for further travel needs.