An Overview of the International Entrepreneur Rule
In my two decades as an immigration attorney, I have worked with countless entrepreneurs, visionaries, and risk-takers from around the world who seek to bring their dreams to life in the United States. One of the most intriguing opportunities for immigrant entrepreneurs is the International Entrepreneur Rule (IER), a pathway that enables innovative individuals to work in the United States while building and scaling their startups.
This program is relatively new. If you are considering this option, this article will guide you through the key aspects of the rule, including the ownership requirements, startup qualifications, and funding thresholds. Here are the key points:
Level of Ownership and Role in the Startup Entity
To qualify under the International Entrepreneur Rule, you must hold substantial ownership in the startup business. Specifically, this means:
- Owning at least 10 percent of the entity at the time of your initial application.
- Having a central and active role in the business’s operations, ensuring you are a key driver of the startup’s success and growth.
Startup Entity Requirements
Note that the startup entity must meet several critical criteria, such as:
- Formation: The business must be a U.S.-based entity that was lawfully formed within the five years immediately preceding your application for initial parole.
- Business Activity: It must be actively conducting lawful business in the United States.
- Growth Potential: The startup must demonstrate substantial potential for rapid growth and job creation. This is a cornerstone of the International Entrepreneur Rule.
Funding Thresholds
To demonstrate that your startup has substantial potential for growth and job creation, you must show that, within the past 18 months, the entity has received:
- 1. A Qualified Investment: At least $311,071 (as of October 1, 2024) from a qualifying investor. The investor must have a proven track record of substantial investments in successful startups.
- 2. A Qualified Award or Grant: At least $124,429 (as of October 1, 2024) from a U.S. federal, state, or local government entity.
If your startup only partially meets one or both of these funding levels, you may still qualify. You can submit additional reliable and compelling evidence to demonstrate substantial potential for growth. Examples include:
- Smaller investments
- Letters of interest from potential clients
- Other indicators of significant market demand
Additional Notes on Funding
While you may personally invest in your startup or secure additional funding through other sources, note that only qualified investments from a qualifying investor count toward meeting the minimum investment threshold. This underscores the importance of working with experienced legal counsel to ensure compliance.
Conclusion
For those interested in legally residing and working in the United States, the International Entrepreneur Rule offers a unique opportunity to build successful businesses. By meeting the ownership, startup, and funding requirements, you can take advantage of this innovative pathway.
As always, navigating the complexities of immigration law can be challenging, but with the right guidance and preparation, you can turn your entrepreneurial vision into reality.
If you are looking for a comprehensive guide to the documents needed to demonstrate your eligibility and strengthen your case, we can help. Contact us at patricia@perisse-bochi.com, and we will provide you with a general List of Documents.