How to Qualify for the International Entrepreneur Parole Program

The International Entrepreneur Rule is a U.S. immigration program designed for foreign entrepreneurs who want to launch and grow their startup businesses in the United States. This program helps attract individuals who can contribute to the U.S. economy by fostering innovation, creating jobs, and driving business growth.

In this guide, you will learn the key requirements for applying for the Entrepreneur Parole program, including how to qualify, how to renew your status, and a checklist of important criteria.

Requirements for the International Entrepreneur Rule: First 30-Month Approval

To qualify for the International Entrepreneur Parole, entrepreneurs must meet specific requirements. The first step is submitting Form I-941, the Application for Entrepreneur Parole. Here are the essential criteria:

1. Qualified Entrepreneurship

Ownership Stake: You must own a substantial percentage of the startup.
- At least 10% ownership is required when you first apply.
- After your initial approval, this ownership can decrease but must stay above 5%.
Active Role: You must play a central, active role in your startup’s daily operations, contributing your knowledge, skills, or experience to help the business grow.

2. Qualified Startup

Your U.S. business must have been formed within the last five years.
The business must be lawfully operating, excluding companies primarily engaged in securities trading.
Your startup should show substantial potential for rapid growth and job creation.

3. Public Benefit

You must provide evidence that your business will bring significant public benefits to the U.S. This can be shown through reports from qualified investors or government agencies.
You can also demonstrate public benefit through:
- Qualified investments of at least $250,000 or
- Awards or grants of at least $100,000 in the 18 months before applying.

Entrepreneur Parole Application Process and Timeline

Once you meet the eligibility criteria, you can apply for International Entrepreneur Parole by submitting Form I-941 to U.S. Citizenship and Immigration Services (USCIS).

Here’s what happens next:

Approval: After USCIS approves your application, you’ll need to obtain a boarding foil from a U.S. consulate. This allows you to board a flight to the United States.
Family Members: Spouses and unmarried children under the age of 18 can also join you in the U.S. under the Entrepreneur Parole program.
- Spouses can apply for an Employment Authorization Document (EAD) by filing Form I-765 after entering the U.S.
- The entrepreneur (founder) is automatically permitted to work in the U.S.

Renewing Your Entrepreneur Parole Status: The Second 30-Month Approval

After the first 30-month parole period, you can apply to extend your stay for an additional 2.5 years (second parole period). To qualify for this extension, you must meet the following requirements:

1. Qualified Entrepreneurship (Re-Parole)

Maintain at least 5% ownership of the startup at the time of re-parole.
Continue to hold a central and active role in the business operations.

2. Qualified Startup (Re-Parole)

Your business must continue operating and show that it still has significant potential for growth and job creation.

3. Continued Public Benefit (Re-Parole)

To qualify for re-parole, you must meet one of the following conditions:
- Secure an additional $500,000 in qualified investments.
- Create at least five full-time jobs for U.S. workers.
- Generate $500,000 or more in annual revenue in the U.S.
If you cannot meet these thresholds fully, you may still qualify if you provide evidence that your startup is on track to meet these goals and can demonstrate significant growth potential.

Eligibility Requirements for the International Entrepreneur Parole Program

The International Entrepreneur Parole Program (IEPP) allows foreign entrepreneurs to stay in the United States to develop and grow their startups. To qualify for this program, applicants must meet specific criteria regarding ownership, business involvement, and funding.

Who Can Apply?

Eligible applicants include:

Founders of Start-ups: Individuals who have established a startup entity in the U.S. within the last five years.
Key Employees: Up to three entrepreneurs per startup may apply for parole, provided they meet the eligibility criteria.

Key Criteria for Qualifying

To qualify for the IEPP, entrepreneurs must demonstrate:

Ownership Stake: Applicants must hold at least a 10% ownership interest in the startup at the time of application. This percentage can decrease to above 5% during re-parole applications.
Active Role: Entrepreneurs must play a central and active role in the operations of the business, utilizing their skills and experience to facilitate growth.
Investment Requirements: The startup must have received significant investment—either at least $250,000 from qualified investors or $100,000 from government grants within 18 months before applying.
Growth Potential: The business must demonstrate substantial potential for rapid growth and job creation, evidenced by financial projections and market research

Proving Entrepreneurial Potential

To substantiate their application, entrepreneurs should provide:

Business Plans: Detailed plans outlining the business model and strategies for growth.
Financial Projections: Forecasts that illustrate expected revenue generation and job creation.
Letters of Support: Endorsements from investors or industry experts that validate the business’s potential impact on the U.S. economy.
Investment Records: Documentation of funding received from qualified investors or government entities.

Demonstrating potential economic impact is crucial; applicants should highlight how their venture will create jobs and generate revenue in the U.S.

Funding or Investment Requirements

The IEPP has specific thresholds for funding:

A minimum investment of $250,000 from qualified U.S. investors or at least $100,000 from government grants is required.
Funding can come from various sources, including venture capital firms, angel investors, or government programs. Both foreign and U.S.-based investors are considered valid sources of funding.

Demonstrating Growth Potential

Entrepreneurs should present their company’s market opportunity by:

Providing solid business projections that indicate growth potential.
Conducting thorough market research to identify trends and opportunities within relevant industries such as technology or green energy.

Role in U.S. Job Creation

The startup must demonstrate its capacity to create jobs for U.S. workers. Key points include:

A requirement to create at least five full-time jobs within a specified timeframe during the parole period.
Eligible roles include positions that contribute directly to the startup’s operations and growth.

Required Documents for Application

To apply for the IEPP, entrepreneurs need to submit various documents:

Form I-941: The primary application form for entrepreneur parole.
Company Financials: Evidence of financial health and projections.
Investment Documentation: Proof of funding received from qualified sources.
Ownership Proof: Documentation verifying ownership stake in the startup.
Letters of Support: Endorsements from investors or industry experts.

Step-by-Step Application Process

Complete Form I-941, ensuring all sections are filled accurately.
Gather supporting documents that validate eligibility criteria.
Apply along with a filing fee of approximately $1,200, plus a biometrics fee if applicable.
After approval, obtain a travel document from a U.S. consulate to enter the U.S.

What to Expect After Submission

Processing times can vary significantly; however, applicants should be prepared for potential delays. After submission:

If approved, entrepreneurs will receive initial parole for up to 30 months, with options to apply for re-parole based on meeting specific benchmarks related to job creation or funding.
If denied, applicants may seek clarification on reasons for denial and explore options for reapplication or alternative visa categories.

The Role of Parole in the International Entrepreneur Parole Program

The International Entrepreneur Parole Program (IEPP) provides a unique pathway for foreign entrepreneurs to establish and grow their businesses in the United States. Unlike traditional visa statuses, which grant specific rights and privileges, parole offers temporary permission for individuals to enter and remain in the U.S. based on their potential contribution to the economy.

Understanding Parole vs. Visa Status

Parole is not a visa; it allows individuals to enter the U.S. for a limited time without granting them full immigration status. Entrepreneurs granted parole can work only for their startup and must adhere to specific conditions during their stay, such as maintaining an active role in the business and meeting job creation benchmarks. This status is temporary and does not automatically lead to permanent residency.

Duration and Renewal of Parole Status

Initially, entrepreneurs can receive up to 2.5 years of parole, with the possibility of extending this period for an additional 2.5 years, totaling a maximum of five years. To qualify for renewal, entrepreneurs must demonstrate continued progress in job creation, investment, or revenue generation. They need to provide evidence that their business is operational and meeting specific performance metrics, such as creating at least five qualifying jobs or securing significant investments.

Pathways to Permanent Residency

After being granted parole under the IEPP, entrepreneurs may seek pathways to permanent residency (Green Card status). Options include transitioning to immigrant visas such as the EB-2 or EB-5 visas, which cater to individuals with advanced degrees or significant investments in U.S. businesses. Entrepreneurs can apply for these visas while maintaining their parole status, provided they meet the respective eligibility requirements.

Maintaining Parole Status

To maintain their parole status while operating their business, entrepreneurs must:

Continue running their startup actively.
Meet job creation requirements as outlined during their initial application.
Provide regular updates on business performance and compliance with program conditions.

Failure to meet these requirements can lead to the loss of parole status, potentially resulting in deportation or barring future entry into the U.S.

Common Mistakes and Application Tips

Entrepreneurs often encounter pitfalls during the application process, such as:

Submitting insufficient documentation.
Failing to present a clear and compelling business plan.
Neglecting to demonstrate an active role in the business effectively.

To avoid these issues, applicants should prepare comprehensive documentation that includes detailed business plans, financial projections, letters of support from investors, and evidence of job creation efforts.

Demonstrating a Significant Role in Business Operations

Entrepreneurs must prove their active involvement in managing and operating the startup. This can be shown through:

Evidence of day-to-day operations.
Documentation of leadership roles (e.g., founder or CEO).
Strategic decision-making contributions that drive company growth.

Family Accompaniment under IEP

Entrepreneurs can bring their immediate family members (spouses and children under 21) with them under the IEPP. Spouses may apply for work authorization once paroled into the U.S., while children can study but are not eligible for employment.

Addressing Application Denials

Applications for International Entrepreneur Parole may be denied due to insufficient funding or lack of demonstrated job creation potential. In such cases, applicants should carefully review denial reasons and address any deficiencies before reapplying or appealing the decision.

Key Takeaways

The International Entrepreneur Rule allows foreign entrepreneurs to establish and grow their businesses in the U.S., benefiting both the entrepreneur and the U.S. economy. To qualify, you must meet ownership, operational, and public benefit criteria, and demonstrate your startup’s potential for growth.

With the right application and evidence, entrepreneurs can secure up to five years of parole status to build their businesses in the U.S. If you meet the ongoing requirements, you can extend your status for another 2.5 years.

For assistance with your application or to better understand the process, Law and Visas offers expert guidance to help entrepreneurs navigate U.S. immigration rules and grow their businesses successfully.

How Law and Visas Can Help?

At Law and Visas, our team of expert immigration consultants is here to make your travel to the United States straightforward and successful. Whether you’re applying for an E-2 Treaty Investor Visa or an H1B Visa, we handle every step—from preparing your application to gathering the required documents.

Our Immigration Consultants and Lawyers ensure that your application meets the highest standards, with no details missed. We’ll also keep you informed throughout the process and coordinate with the immigration office or embassy on your behalf.

Law and Visas has a strong record of helping clients secure the visas/permits they need to visit the United States. You can call us today at +234 812 5505 986 to learn how we can help you.