The International Entrepreneur Rule (IER) continues to evolve in 2025, offering foreign entrepreneurs a pathway to build innovative startups in the United States. This immigration option allows qualified entrepreneurs to receive parole status to work solely for their startup businesses while contributing to the U.S. economy.

The USCIS recently issued updated policy guidance clarifying the types of evidence that may support applications under the International Entrepreneur Rule. This update makes the process more transparent for applicants.

The rule remains significant for the U.S. innovation ecosystem despite facing challenges over the years. Organizations like the National Venture Capital Association have defended the program, arguing that it delivers substantial economic and security benefits to the United States. As global competition for entrepreneurial talent intensifies, these updates aim to strengthen America's position as a destination for international founders.

Key Takeaways

Entrepreneurs granted parole under the IER can only work for their own startup business. Meanwhile, their spouses may qualify for work authorization.

Updated USCIS guidance provides clearer standards for evidence supporting International Entrepreneur Rule applications.

The program continues to operate despite previous attempts to rescind it, acknowledging its economic benefits to the United States.

Overview of the International Entrepreneur Rule

The International Entrepreneur Rule (IER) provides a pathway for foreign entrepreneurs to build businesses in the United States through the Department of Homeland Security's parole authority. This program aims to attract innovative founders who can create jobs and economic growth in America.

History and Purpose

The International Entrepreneur Rule was first introduced in 2017 during the final days of the Obama administration. However, it faced implementation delays and was nearly eliminated before being fully reinstated under the Biden Administration.

The primary purpose of the IER is to address a critical gap in U.S. immigration policy. Unlike many other countries, the U.S. lacked a specific visa category for startup founders.

The rule enables the Department of Homeland Security to use its parole authority to allow entrepreneurs to stay temporarily in the U.S. if they demonstrate that their presence would provide a "significant public benefit" through business growth and job creation.

Key Provisions

Under the International Entrepreneur Rule, eligible foreign entrepreneurs can receive up to 30 months of authorized stay, with a possible extension of an additional 30 months if certain criteria are met.

To qualify, applicants must:

• Own at least 10% of a U.S. startup formed within the last 5 years

• Play an active role in the company's operations

• Demonstrate substantial potential for rapid growth and job creation

Entrepreneurs must show they've received at least $250,000 from qualified U.S. investors or $100,000 in government grants. As of October 1, 2024, these investment thresholds have increased.

The rule allows entrepreneurs to work only for their startup business. Meanwhile, spouses may apply for work authorization.

Impact on the U.S. Economy

The International Entrepreneur Rule aims to strengthen American innovation and competitiveness in the global market. Foreign-born entrepreneurs have historically played a significant role in the U.S. economy.

Studies show immigrant entrepreneurs have founded many Fortune 500 companies and created millions of American jobs. The rule specifically targets founders with high-growth potential who can contribute to economic development.

By allowing these entrepreneurs to build their companies in the U.S., the program helps prevent "startup flight" where innovative businesses relocate to countries with more favorable immigration policies.

USCIS estimates the rule could benefit approximately 3,000 entrepreneurs annually, potentially creating tens of thousands of jobs over time.

Eligibility Criteria for Entrepreneurs

The International Entrepreneur Rule (IER) establishes specific requirements that foreign entrepreneurs must meet to qualify for temporary entry into the United States. These criteria focus on ownership stake, financial backing, and growth potential of the startup.

Ownership Interest Requirements

Entrepreneurs must possess a substantial ownership interest in their startup entity to qualify under the IER. This ownership must be significant enough to demonstrate the applicant's commitment to the business. The rule typically requires entrepreneurs to hold at least 10% ownership in the startup at the time of application.

As the business grows and attracts more investment, this percentage may decrease, but the entrepreneur must maintain a central and active role in the company's operations. Up to three entrepreneurs per startup can qualify for the IER, allowing founding teams to enter the U.S. together.

Applicants must provide documentation proving their ownership stake through business formation documents, stock certificates, or operating agreements.

Investment Thresholds

The IER requires startups to demonstrate significant capital investment. Beginning October 1, 2024, USCIS is increasing the investment thresholds as part of its required triennial update.

To qualify, entrepreneurs must show their startup has received:

• At least $264,147 from qualified U.S. investors (like venture capital firms, angel investors, or startup accelerators)

• Or obtained significant grants or awards from government entities

These financial thresholds serve as indicators of the startup's potential viability and growth prospects. Investments must come from established investors with successful track records to ensure credibility.

Partial satisfaction of these criteria may still qualify if the entrepreneur provides compelling evidence of the startup's growth potential through other means.

Evidence of Potential for Rapid Growth

Entrepreneurs must demonstrate their startup has substantial potential for rapid growth and job creation. This can be evidenced by:

• Annual revenue generation (with increased thresholds effective October 1, 2024)

• Creation of jobs for U.S. workers

• Development of innovative products or services

The IER looks for startups that can significantly benefit the U.S. economy. Applicants should provide business plans, market analysis, and growth projections to support their case.

Evidence of customer acquisition, patents or intellectual property, and partnerships with established companies can strengthen an application. Recent USCIS guidance clarifies how entrepreneurs can demonstrate their central, active role and their position to significantly grow the entity.

The Application Process

The International Entrepreneur Rule application involves submitting a specific form, providing detailed documentation, and going through evaluation by USCIS. Entrepreneurs must demonstrate that they meet all requirements through compelling evidence and proper paperwork.

Submitting Form I-941

Form I-941, Application for Entrepreneur Parole, serves as the foundation of the IER application process. Entrepreneurs must complete this form accurately, as it collects essential information about the applicant and their startup venture.

The form requires details about the entrepreneur's background, their role in the startup, and information about the business itself. Each entrepreneur seeking parole must submit their own separate Form I-941, even if they are co-founders of the same company.

USCIS charges a filing fee for Form I-941, which must be included with the submission. Applicants should check the current fee amount on the USCIS website before submission, as these amounts can change.

Required Documentation

Applicants must provide compelling evidence to support their eligibility for entrepreneur parole. This evidence must demonstrate that they meet the specific criteria outlined in the International Entrepreneur Rule.

Documentation typically includes:

• Proof of substantial ownership (at least 10%) in the startup

• Evidence of significant capital investment (at least $250,000 from qualified U.S. investors or $100,000 in government grants/awards)

• Business plan demonstrating growth potential and job creation

• Formation documents for the startup entity

• Financial records showing the startup's viability

• Personal identification documents

USCIS places particular emphasis on evidence showing the startup's potential for rapid growth and job creation. This might include market analysis, revenue projections, and letters from investors.

Adjudication by USCIS

USCIS officers review each application to determine if the entrepreneur qualifies for parole under the International Entrepreneur Rule. They evaluate whether the application and supporting documents demonstrate that the entrepreneur meets all requirements.

The review process focuses on three main areas: the entrepreneur's qualifications, the startup's potential, and whether granting parole would provide a significant public benefit to the United States.

If approved, entrepreneurs receive an authorized stay of up to 30 months, with potential for extension. USCIS may request additional evidence if they need more information to make a determination.

Processing times vary, but USCIS aims to adjudicate applications promptly. Entrepreneurs should plan accordingly, as they cannot begin working in the U.S. until their application is approved and they are paroled into the country.

Financial Aspects of the IER

The International Entrepreneur Rule (IER) has specific financial requirements that entrepreneurs must meet to qualify for parole in the United States. These requirements focus on investment amounts and revenue thresholds that are adjusted periodically.

Qualifying Investments and Investors

To qualify under the IER, entrepreneurs must demonstrate substantial investment in their startup. As of October 1, 2024, the investment threshold has increased to $746,571, up from the previous $633,952. This adjustment happens every three years as required by the rule.

Qualified investors include venture capital firms and angel investors who have established track records of successful investments. These investors must have made investments in startup entities totaling the required amount in exchange for equity.

Entrepreneurs seeking parole must own at least 10% of the startup business. The rule allows up to three individuals with substantial ownership interest to apply for entrepreneurial parole through the same startup entity.

Government Grants and Funding

Beyond private investment, the IER recognizes government funding as a valid pathway for entrepreneurs. Qualified government awards or grants can help satisfy the financial requirements for parole consideration.

These grants come from federal, state, or local government entities that typically fund businesses with potential for rapid growth and job creation. Government funding demonstrates the startup's credibility and potential economic contribution.

The specific amount of government funding required aligns with the investment thresholds. Entrepreneurs must provide documentation of these grants as part of their application process. This alternative funding route opens opportunities for startups in sectors that might attract government interest rather than private capital.

Legal Implications and Immigration Status

The International Entrepreneur Rule creates a unique immigration pathway with specific legal requirements. Entrepreneurs must understand their rights, limitations, and future options under this parole status to maintain compliance and plan strategically.

Maintaining Parole Status

Entrepreneurs granted parole under the International Entrepreneur Rule may stay in the US for up to 30 months initially. They must work only for their startup business and cannot seek employment elsewhere. This restriction is a key legal limitation that differs from other visa categories.

To maintain valid status, entrepreneurs must:

• Maintain significant ownership stake (at least 10%)

• Actively operate the business

• Meet revenue and investment thresholds

• Report material changes to USCIS

The parole status includes employment authorization for the entrepreneur limited to working for their startup. Dependents receive different benefits - spouses may apply for separate work authorization, while children cannot work but can attend school.

Re-Parole and Extensions

Entrepreneurs can request an extension of their parole for up to 30 additional months if they continue to meet eligibility requirements. The extension process requires demonstrating ongoing business growth and continued compliance with program criteria.

For re-parole consideration, entrepreneurs must show:

• Business growth through increased investment, revenue, job creation, or other metrics

• Continued active role in operations

• Significant public benefit to the United States

• No disqualifying criminal activity

Starting October 1, 2024, USCIS will implement updated investment and revenue thresholds for extension requests. These adjustments occur every three years to ensure the program keeps pace with economic conditions.

The extension application should be filed before the initial parole period expires to avoid status gaps.

Long-Term Immigration Options

The International Entrepreneur Rule does not provide a direct path to permanent residency. Entrepreneurs should consider exploring more permanent immigration options while on parole status.

Potential long-term pathways include:

Entrepreneurs may also qualify for EB-5 if they make substantial investments, or explore H-1B sponsorship through their own company with proper corporate governance.

Transitioning from parole to a non-immigrant status (like O-1 or H-1B) provides more stability before pursuing permanent residency options.

Economic and Employment Impact

The International Entrepreneur Rule aims to boost the U.S. economy by bringing innovative foreign entrepreneurs into the country. This initiative creates jobs and strengthens economic development through startup growth.

Job Creation and Economic Development

Foreign entrepreneurs admitted under the International Entrepreneur Rule must create qualified jobs for U.S. workers. The program requires these business leaders to establish startups with significant potential for rapid growth and job creation.

Each approved entrepreneur can work only for their specific startup business, ensuring their focus remains on growing their company and creating employment opportunities. Research shows that immigrant entrepreneurs historically establish businesses at higher rates than native-born Americans.

Studies indicate that successful international startups typically create between 5-10 jobs within their first year and can generate dozens more as they scale. These positions often offer competitive salaries in technology, manufacturing, and service sectors.

Startup Contributions to the U.S. Economy

International startups bring fresh innovation and capital investment to American markets. These businesses often develop cutting-edge technologies and products that can revitalize industries and create new market opportunities.

The updated International Entrepreneur Rule, effective October 2024, aims to attract more foreign talent by streamlining the application process. This change recognizes the economic value these entrepreneurs bring to the U.S.

Foreign-founded startups have contributed billions to the U.S. economy over the past decade. They attract venture capital, generate tax revenue, and often lead to additional indirect job creation through supplier relationships and service needs.

Many successful American companies like Google, Tesla, and Zoom were founded by immigrants, demonstrating the potential economic impact of welcoming international entrepreneurs.

Recent Developments and Updates

The International Entrepreneur Rule (IER) has undergone significant changes in recent years. Key updates include adjusted investment thresholds, revised qualifying criteria, and new implementation policies that impact foreign entrepreneurs seeking to build startups in the United States.

Changes Under the Biden Administration

The Biden Administration revitalized the International Entrepreneur Rule after it faced uncertainty under the previous administration. The program was reinstated with a renewed commitment to attracting global entrepreneurial talent to the United States.

USCIS announced updated policy guidance for applications submitted under the IER, clarifying requirements and streamlining processes. These changes aim to make the program more accessible while maintaining its integrity.

Most notably, USCIS has announced mandatory threshold adjustments that will take effect on October 1, 2024. These triennial updates are required by the rule to account for economic changes and inflation.

The administration's approach reflects broader efforts to strengthen America's competitiveness in the global innovation economy by making it easier for promising foreign entrepreneurs to build their companies in the U.S.

Trends in Qualifying Investments

Investment requirements for the IER have seen important updates. According to recent announcements, the qualifying investment threshold will increase effective October 1, 2024.

The definition of a "qualified investor" has been revised to require that an individual or entity must have invested no less than $746,571 in startups. This represents an adjustment from previous thresholds.

Qualifying investments must come from established U.S. investors with a track record of successful investments. This helps ensure that entrepreneurs receiving parole have legitimate business prospects.

The ownership interest requirements remain an important factor. Entrepreneurs must maintain a substantial ownership position in their startup to qualify, though specific percentage requirements may vary based on total investment amount.

These updated investment criteria help USCIS identify ventures with genuine potential for rapid growth and job creation.

Statistical Performance and Growth

The IER program has shown promising results in terms of economic impact. Startups under this program must demonstrate substantial growth potential, typically measured through annual revenue metrics and job creation.

Key Performance Indicators:

• Annual revenue: Must meet minimum thresholds

• Average annualized revenue growth: Expected to show significant upward trajectory

• Job creation: Number of qualified jobs created for U.S. workers

Entrepreneurs granted parole under the IER are eligible to work only for their startup business. Their spouses may also receive work authorization, creating additional economic benefits.

Data suggests that international entrepreneur-led startups tend to show strong growth patterns during their initial years of operation. These companies often develop innovative products and services that contribute to U.S. technological leadership.

The program continues to evolve based on economic outcomes and stakeholder feedback, with USCIS making data-driven adjustments to maximize positive economic impact.

Challenges and Considerations

While the International Entrepreneur Rule offers opportunities for foreign entrepreneurs, it comes with several important challenges. Navigating USCIS requirements, understanding application complexities, and knowing your alternatives are essential for success.

Complexities in the Application Process

The Form I-941 application process for entrepreneur parole requires careful attention to detail. USCIS evaluates applications with intense scrutiny, making proper documentation critical. Entrepreneurs must clearly demonstrate how they meet the investment thresholds, which have recently increased according to the updated guidance.

Evidence requirements can be challenging, especially for startups in early stages. Applicants must provide compelling proof of their startup's potential for rapid growth and job creation. This includes detailed business plans, financial projections, and investor commitments.

The parole authority that USCIS exercises is discretionary, meaning approval is never guaranteed even when minimum criteria appear to be met. Applications can face delays due to requests for additional evidence or administrative processing.

Considerations for Re-Applying

If USCIS denies an entrepreneur parole application, understanding the reasons is crucial before re-applying. Rejection often stems from insufficient documentation of investment funding or failure to demonstrate significant public benefit.

When preparing a new application, entrepreneurs should address previous shortcomings by providing alternative evidence that strengthens their case. This might include:

• New investment commitments

• Updated business metrics

• Additional letters of support

• Evidence of market traction

The timing of re-application matters. Waiting until the business has reached important milestones can significantly improve chances of approval. Entrepreneurs should also stay informed about any changes to the International Entrepreneur Rule requirements.

Alternatives to the IER

For entrepreneurs facing challenges with the IER, several visa alternatives exist. The E-2 treaty investor visa offers options for nationals of treaty countries investing substantially in a U.S. business. Unlike parole, this provides actual visa status.

The O-1A visa serves individuals with extraordinary ability, including successful entrepreneurs. Requirements include national or international recognition in their field and significant achievements.

Other possibilities include:

• L-1 visas for intracompany transfers

• H-1B visas for specialty occupations

• EB-5 immigrant investor program

Each alternative has distinct requirements and immigration consequences. The EB-5 program provides a path to permanent residency but requires substantial investment, typically $800,000 to $1,050,000 depending on the location.

Professional legal guidance is essential when considering these alternatives, as they differ significantly from entrepreneur parole in terms of eligibility criteria and benefits.

Practical Advice for Potential Applicants

Applying for the International Entrepreneur Rule requires careful preparation and strong evidence. Success depends on demonstrating both investment qualification and growth potential.

Best Practices for Evidence Submission

Documentation is critical when applying under the International Entrepreneur Rule. Entrepreneurs must provide clear evidence of qualifying investments of at least $311,071 from U.S. investors with established track records.

Bank statements showing fund transfers should be included alongside formal investment agreements. These documents help verify that financial requirements have been met.

For convertible debt arrangements, include the complete agreement terms and evidence that funds have been received. USCIS looks for transparent documentation of all financial arrangements.

Organize evidence logically with a cover letter explaining how each document supports eligibility. Consider using tabs or section dividers to make review easier.

Have an immigration attorney review your evidence package before submission. They can identify potential weaknesses or missing elements.

Strategies for Demonstrating Growth Potential

USCIS requires "substantial and demonstrated potential for rapid business growth" for approval. This can be shown through multiple channels.

Quantitative metrics are persuasive. Include:

• Revenue projections with supporting market analysis

• Current growth trends if the business is operational

• Customer acquisition rates

• Job creation forecasts with timeline

Business plans should detail specific milestones already achieved and future targets.

Vague claims without supporting data will weaken your application.

Letters from industry experts or potential customers can validate your business model. These testimonials should address specific market opportunities rather than offer general praise.

Highlight the entrepreneur's role requirements and how their skills are essential to the startup's success.

Detail specific responsibilities and decision-making authority they hold.