The U.S. will increase the minimum investment and revenue requirements under the International Entrepreneur Rule (IER) as of October 1st, 2024.
This rule allows foreign entrepreneurs to establish businesses in the U.S. with support from qualified investors instead of relying on personal funds.
According to recent reports from TravelBiz, this new standard will create higher barriers for foreign entrepreneurs seeking temporary parole status to live and work in the U.S. for up to five years while developing their startups.
This update aims to ensure that only the most viable business ventures receive support under the IER.
Grasping the International Entrepreneur Rule
The International Entrepreneur Rule provides a pathway for foreign entrepreneurs to start businesses in the U.S. without significant personal investment. Instead, entrepreneurs must obtain backing from qualified U.S. investors to demonstrate their startups’ potential for growth and job creation. Key criteria include:
- Entrepreneurs may be residing abroad or already in the U.S.
- Start-up entities must have been formed in the U.S. within the past five years.
Updated Requirements
Reports inform that effective October 1st, 2024, the IER will see significant increases in the minimum investment and revenue thresholds. Recent developments show that in:
- Investment Requirement: Entrepreneurs must now show at least $311,071 in qualified investments, up from $264,147.
- Government Grants: The minimum amount for qualified government awards or grants is now $124,429, increased from $105,659.
- Re-parole Consideration: The revenue required for re-parole has risen from $528,293 to $622,142.
U.S. Citizenship and Immigration Services (USCIS) will update Form I-941, its Application for Entrepreneur Parole, and its instructions to reflect these new amounts.
Investor Qualifications Under the IER
Further reports inform that to qualify as an investor under the IER, an individual or organization must have invested at least $746,571 in startup entities over five years, up from the previous threshold of $633,952, reports inform. Additionally, two of the startup entities must meet one of the following criteria:
- Created at least five jobs.
- Generated $622,142 in revenue, with annual growth of at least 20%, an increase from the previous requirement of $528,293.
What To Know
One is also informed that entrepreneurs approved under the IER can get an initial parole period of up to 2.5 years, which can be extended for another 2.5 years, allowing a total stay of five years. During this time, they can work on their start-ups, and their spouses can apply for work permits too.
With the U.S. raising the investment requirements under the International Entrepreneur Rule, the situation for foreign entrepreneurs will change. These new rules may create challenges for many hopeful business owners, but they also show a commitment to supporting promising ventures that can boost the economy and create jobs.
Entrepreneurs will need to adjust to these new challenges, putting more emphasis on the quality and feasibility of their business ideas instead of just the number of applicants.
