U.S. Citizenship and Immigration Services (USCIS) recently announced updated thresholds for the International Entrepreneur Rule (IER), which enables foreign startup founders to start and grow businesses in the United States. This Obama-era program, aimed at fostering innovation and economic growth by attracting global entrepreneurial talent, had previously seen limited uptake. Here’s an overview of the key updates effective as of October 1, 2024:
Updated Investment and Revenue Thresholds
To qualify, foreign entrepreneurs must now demonstrate their startup has met increased funding requirements:
- Initial Investment Requirement: An investment of $311,071 (previously $264,147) or $124,429 (previously $105,659) in government grants or awards.
- Alternative Evidence: If the startup doesn’t fully meet the above criteria, founders may submit other reliable evidence showing high growth potential and job creation.
For renewal applications, startups must demonstrate:
- Investment: $622,142 (previously $528,293) in investments,
- Job Creation: At least five jobs created, or
- Revenue: Annual revenue in the U.S. of $622,142 (previously $528,293).
Updated Requirements for Investors
To strengthen program integrity, USCIS updated criteria for investor qualifications. Investors must have:
- Minimum Investment: Invested at least $746,571 (previously $633,952) in startups in exchange for equity.
- Track Record of Success: After investment, at least two startups must have each created at least five jobs or generated $622,142 in revenue with an average annual growth of 20%.
Other Key Eligibility Criteria
- Business Age and Location: Entrepreneurs must be associated with a U.S. startup formed within the past five years.
- Stay Duration: Entrepreneurs can receive an initial stay of up to 2.5 years, with a possible 2.5-year extension if the startup shows substantial growth in capital, revenue, or job creation.
- Spousal Work Authorization: While spouses can apply for work authorization, children are ineligible.
Background and Current Challenges
Launched in January 2017, the IER faced an uncertain future when the Trump administration moved to suspend the rule. However, a court ruling required DHS to continue processing applications. The Biden administration has since supported the rule, emphasizing the importance of foreign entrepreneurship to the U.S. economy. Despite this, the program has seen limited success: since FY 2021, only 94 applications were filed, with 26 approvals, 28 denials, and 40 pending or withdrawn cases.
Boosting the Program’s Impact
In an effort to increase adoption, USCIS updated its website on July 12, 2024, adding a detailed FAQ to clarify eligibility and application processes. This program provides a unique opportunity for international entrepreneurs and may also promote further immigration reform discussions to attract global talent effectively.
