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
- Entrepreneur’s Role: Must own at least 10% of the startup and play a critical role in its operations.
- Startup Age: Must be a U.S.-based startup established within the past five years.
- 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.
- Entrepreneurs per Startup: Up to three founders per startup can qualify.
- 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.
