The US Citizenship and Immigration Services (USCIS) has announced significant changes to the International Entrepreneur Parole (IEP) program, set to take effect on October 1, 2024. This program offers a vital pathway for foreign entrepreneurs to enter and temporarily work in the United States to develop their businesses, contributing to the US economy through job creation.
Background and Evolution of the IEP Program: Initially introduced during the Obama administration, the IEP program faced challenges under the Trump administration, which sought to eliminate the program by delaying its implementation. This led to legal battles and a slow pace of application adjudication. In May 2021, the Department of Homeland Security (DHS) reinstated the program, acknowledging its importance in fostering economic growth through entrepreneurial talent.
Revised Eligibility and Investment Thresholds: Under the new rules effective from October 2024, to qualify for the IEP, entrepreneurs must have established a US startup within the past five years and hold at least a 10% ownership stake. They must also play an active, central role in the business beyond mere investment.
The updated financial requirements are as follows:
- The startup must have received at least $311,071 in capital investment from qualified US investors or $124,429 in grants or awards from reputable US government entities by the time of application.
- For applications submitted before September 30, 2024, the existing lower thresholds of $264,147 for capital investments and $105,659 for government grants will apply.
Investor Qualifications: Investors must be US citizens, lawful permanent residents, or US-based organizations controlled by such individuals. These investors should have a history of substantial investments leading to significant business growth.
Program Benefits and Parole Duration: Approved entrepreneurs can initially enter the US for 30 months, with the possibility of extending for another 30 months, totaling up to five years. This program aims to facilitate significant employment creation in the US. Entrepreneurs’ spouses and minor children may also qualify for parole, with spouses eligible to apply for work authorization separately.
Extension Criteria: For an extension beyond the initial 30 months, entrepreneurs must demonstrate that the business has received an additional $622,142 in investments, grants, or revenue, and created at least five qualifying jobs. They must also show continued significant business activity and growth.
Application Process and Considerations: Applying for the IEP involves submitting a Form I-941 with a $1,200 fee, along with extensive supporting documentation to prove the entrepreneur’s significant role and the startup’s potential impact. Given the historically lengthy and unpredictable processing times, potential applicants should prepare for a rigorous and detailed application process.
This program adjustment highlights USCIS’s recognition of the unique contributions foreign entrepreneurs make to the US economy, especially in high-growth sectors. However, entrepreneurs must navigate complex requirements and substantial financial thresholds to leverage this opportunity effectively.
