Key Takeaways:
- USCIS will update International Entrepreneur Rule thresholds every three years starting October 1, 2024, to reflect economic changes.
- Entrepreneurs must own 10% of the startup, founded in the U.S. within five years, and show potential for rapid growth.
- Entrepreneurs can apply using Form I-941 and prove eligibility through investment or alternative evidence like startup accelerator admission.
What Is the Latest Update From USCIS on the International Entrepreneur Rule?
The United States Citizenship and Immigration Services (USCIS) has announced significant changes to the investment and revenue thresholds for the International Entrepreneur Rule (IER). Starting on October 1, 2024, these thresholds will be updated every three years to reflect the current economic landscape better. The goal is to create a more transparent pathway for entrepreneurs to start and grow new businesses in the United States.
What Are the Eligibility Criteria for the International Entrepreneur Rule?
To be eligible for the IER, certain criteria must be met:
- Entrepreneurs must hold a significant ownership stake (initially at least 10%) and have an active, central role in their startup’s operations.
- The startup should be formed in the United States within the last five years.
- There must be substantial potential for rapid business growth and job creation, evidenced by:
- Significant capital investment of at least $264,147 from qualified U.S. investors.
- Significant awards or grants of at least $105,659 from federal, state, or local government agencies.
- Alternative evidence, like admission into a highly competitive startup accelerator.
How Will the Investment and Revenue Thresholds Be Updated?
The USCIS plans to update the investment and revenue thresholds every three years. These updates will help ensure that the thresholds stay relevant to the current economic environment. Here are the initial thresholds that will go into effect on October 1, 2024:
- $264,147 in qualified investments from U.S. investors.
- $105,659 in qualified government awards or grants.
By periodically updating these thresholds, the USCIS aims to keep the IER aligned with economic fluctuations and to better support high-potential entrepreneurs.
How Does the IER Benefit Entrepreneurs and Startups?
Under the IER, up to three eligible entrepreneurs per startup can get an initial parole period of up to 2.5 years. This allows them to oversee and grow their company within the United States. An extension for up to another 2.5 years can be granted if the startup continues to provide a “significant public benefit,” shown by increases in capital investment, revenue, or job creation.
Entrepreneurs granted parole can work solely for their startup. Additionally, spouses and children of these entrepreneurs may also qualify for parole. Spouses can apply for employment authorization once they are paroled into the United States.
What Is the Application Process for the International Entrepreneur Rule?
To apply for the IER, entrepreneurs must submit Form I-941, Application for Entrepreneur Parole, along with the necessary supporting documentation. This includes proof of the startup’s potential for rapid growth and job creation. The application fee will remain unchanged even with the updated thresholds.
“USCIS will adjudicate applications as expeditiously as possible, with the goal of processing applications within a timely manner. However, premium processing is not currently available for Form I-941,” according to VisaVerge.com.
To access Form I-941 and find more information on the application process, you can refer to USCIS’s official page on Entrepreneur Parole.
What Can Entrepreneurs Do After the Maximum 5-Year Period?
The IER allows a maximum of five years for entrepreneurs to establish their businesses in the United States. During this time, they should aim to transition into a more permanent status as they become eligible. Entrepreneurs can explore other nonimmigrant or immigrant pathways to continue their business operations in the United States.
Why Are These USCIS Updates Important?
The USCIS updates to investment thresholds are essential as they reflect the agency’s commitment to fostering entrepreneurship and innovation. By providing a more accommodating and updated framework, the IER aims to create jobs, stimulate economic growth, and enhance the country’s competitiveness. The periodic updates ensure that the program remains relevant and beneficial for both entrepreneurs and the U.S. economy.
Can Entrepreneurs Seek Alternative Evidence for Eligibility?
Yes, the IER does allow for alternative evidence of a startup’s potential for rapid growth and job creation. For instance, if admission into a well-regarded startup accelerator can be demonstrated, this could serve as proof of the startup’s potential.
Conclusion
The USCIS’s upcoming triennial updates to the investment and revenue thresholds for the International Entrepreneur Rule are a step forward in maintaining a conducive environment for entrepreneurship in the United States. Starting October 1, 2024, these updates will ensure that the IER remains aligned with the economic landscape, making it easier for high-potential entrepreneurs to start and grow their businesses. These changes aim to stimulate job creation and economic growth, benefitting not only the entrepreneurs but also the broader U.S. economy.
For those looking to apply, it is crucial to stay updated with these changes to ensure compliance and take advantage of the opportunities the IER presents. For more detailed information, visit the USCIS official page.
Learn Today:
Glossary of Immigration Terms
- United States Citizenship and Immigration Services (USCIS):
The federal agency responsible for overseeing lawful immigration to the United States, including the processing and adjudication of immigration and naturalization petitions and applications. - International Entrepreneur Rule (IER):
A regulation that allows foreign entrepreneurs to start and operate businesses in the United States for a period of up to five years if they meet specified criteria related to ownership, investment, and job creation. - Parole:
A temporary permission granted by USCIS for individuals to enter and remain in the United States for a specific purpose (such as starting a business under the IER), despite not having a valid visa. - Form I-941:
The application form for Entrepreneur Parole under the IER, which must be submitted with supporting documentation demonstrating the startup’s potential for rapid growth and job creation. - Qualified U.S. Investors:
Investors who meet specified criteria, often including accredited status as defined by U.S. securities laws, and who invest substantial capital in U.S.-based startups to help verify the startup’s potential within the framework of the IER.
This Article In A Nutshell:
USCIS has announced updates to the International Entrepreneur Rule, effective October 1, 2024. Investment and revenue thresholds will be adjusted every three years to better reflect the economy. This aims to provide a clearer path for entrepreneurs to start and grow businesses in the U.S.
— By VisaVerge.com
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