The International Entrepreneur Rule

The International Entrepreneur Rule (IER) aims to provide foreign entrepreneurs with a pathway to grow their startups in the United States, filling a gap where no dedicated “startup visa” exists. Created under the Obama administration and reactivated by the Biden administration, the rule leverages the Secretary of Homeland Security’s authority to grant temporary permission (“parole”) to stay in the U.S. when it serves a “significant public benefit.”

Here’s a breakdown of the IER program, its eligibility requirements, and its impact:

Key Eligibility Requirements

  1. Entrepreneur’s Role: Must own at least 10% of the startup and play a critical role in its operations.
  2. Startup Age: Must be a U.S.-based startup established within the past five years.
  3. Growth Potential: The startup must show strong potential for growth and job creation. Proof can include:
    • At least $264,147 in investment from reputable U.S. investors,
    • $105,659 in U.S. government grants or awards, or
    • Other credible evidence like acceptance into a competitive startup accelerator.
  4. Entrepreneurs per Startup: Up to three founders per startup can qualify.
  5. Initial Stay and Extensions: Entrepreneurs can stay for an initial 2.5 years, with an option to extend for another 2.5 years if the startup continues to demonstrate public benefit through investment, job creation, or revenue growth.

The Need for the Rule

Unlike many countries that offer dedicated startup visas, the U.S. lacks a visa specifically for entrepreneurs. Many well-known immigrant founders—like Elon Musk (Tesla), Pierre Omidyar (eBay), and Sergei Brin (Google)—entered through alternative visas designed for students, family members, or skilled workers. However, as the global competition for talent grows, with countries like Canada and France actively wooing immigrant entrepreneurs, the U.S. needs mechanisms like the IER to retain its position as a leader in innovation.

The IER Timeline

  • 2017: The rule was finalized days before President Obama left office but was frozen by the Trump administration and faced threats of rescission.
  • 2017-2021: Legal challenges and a federal court ruling eventually required DHS to implement the program, though DHS maintained an intention to remove it.
  • 2021: Under the Biden administration, DHS revived the IER, emphasizing its value to the American economy.

Potential Impact and Public Support

An analysis predicted the rule could lead to 135,000-300,000 jobs over the next decade. Many business leaders, tech advocates, and bipartisan lawmakers support the IER, which fills a critical need for foreign entrepreneurs, even as efforts for a formal “startup visa” remain stalled in Congress.

The IER represents a significant opportunity for the U.S. to retain entrepreneurial talent and boost economic growth, especially in sectors like technology. With support from both the business community and policymakers, the IER could have a lasting impact on innovation and job creation in America.

Benefits of the IER for Entrepreneurs

The International Entrepreneur Rule (IER) provides a unique opportunity for foreign entrepreneurs to establish and grow their startups in the United States. Here are some of the key benefits of this program:

Freedom to Work on Your Startup in the U.S.

One of the primary advantages of the IER is that it allows foreign entrepreneurs to live and work in the U.S. while developing their businesses. This freedom is crucial for entrepreneurs who need to be physically present to manage operations, meet clients, and engage with investors. The IER grants temporary parole status, which means that entrepreneurs can focus on their startups without the constraints typically associated with other visa categories.

Opportunities for Growth and Networking

The U.S. offers a vibrant ecosystem for startups, with access to a diverse market, advanced technology, and a wealth of resources. Entrepreneurs under the IER can take advantage of networking opportunities with other business leaders, potential investors, and mentors in various industries. This environment fosters collaboration and innovation, which can significantly enhance the growth potential of their startups.

Pathway to Potential Long-Term Residency

While the IER itself does not provide a direct pathway to a green card, it can serve as a stepping stone toward long-term residency options. Entrepreneurs who successfully establish their businesses and demonstrate their contributions to the U.S. economy may explore other immigration avenues, such as applying for an employment-based green card or adjusting their status based on their achievements.

Challenges and Limitations of the IER

Despite its benefits, the IER also presents several challenges and limitations that entrepreneurs should be aware of:

Time Limits on Parole (Initial and Extensions)

The initial period of authorized stay under the IER is up to 30 months, with the possibility of extending it for an additional 30 months. However, this time-limited status can create uncertainty for entrepreneurs who may need more time to establish their businesses fully. Planning for future extensions requires careful consideration of business milestones and funding timelines.

No Direct Pathway to a Green Card

While the IER allows entrepreneurs to work in the U.S., it does not directly lead to permanent residency. Entrepreneurs must navigate additional immigration processes if they wish to transition from temporary parole status to a green card, which can be complex and uncertain.

Uncertainty Due to Policy Changes

Immigration policies are subject to change based on political climates and administrative priorities. Entrepreneurs relying on the IER may face uncertainty regarding future eligibility criteria or program availability, making long-term planning challenging.

Tips for Securing Funding to Qualify for the IER

To qualify for the IER, entrepreneurs must demonstrate that their startup has significant growth potential through qualified investments or awards. Here are some tips for securing funding:

Approaching Venture Capital Firms and Angel Investors

  1. Research Potential Investors: Identify venture capital firms and angel investors who specialize in your industry or have a history of investing in startups similar to yours.
  2. Build Relationships: Networking is essential; attend industry events, pitch competitions, and startup meetups to connect with potential investors who may be interested in your business model.
  3. Tailor Your Pitch: When approaching investors, customize your pitch to align with their investment strategies and interests. Highlight how your startup addresses market needs and its potential for growth.

Preparing a Compelling Pitch Deck

  1. Clear Value Proposition: Clearly articulate what makes your startup unique and how it solves a specific problem in the market.
  2. Market Analysis: Provide data-driven insights into your target market, including size, trends, and competitive landscape.
  3. Financial Projections: Include realistic financial projections that demonstrate your startup’s potential profitability and growth trajectory over time.
  4. Team Experience: Highlight the strengths of your founding team and any relevant experience that enhances credibility.

Navigating Alternative Funding Sources Like Grants

  1. Research Grants: Look into government grants or programs designed to support startups in specific sectors (e.g., technology, healthcare). These funds often do not require repayment.
  2. Local Economic Development Programs: Many local governments offer funding opportunities or resources for entrepreneurs starting businesses in their areas.
  3. Crowdfunding Platforms: Consider using crowdfunding platforms like Kickstarter or Indiegogo to raise initial capital while validating your business idea with potential customers.

How Law and Visas Can Help?

At Law and Visas, our team of expert immigration consultants is here to make your travel to the US straightforward and successful. Whether you’re applying for a Green Card, Visitor Visa, or Study 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 in the US. Call us today at +234 812 5505 986 to learn how we can assist you.

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