Starting October 1, 2024, the U.S. will increase the minimum investment and revenue thresholds under the International Entrepreneur Rule (IER). This allows foreign entrepreneurs to establish businesses in the U.S. with backing from qualified investors rather than personal funds.
The United States has increased investment and revenue requirements under the International Entrepreneur Rule (IER), which allows foreign entrepreneurs to establish businesses in the country.
Under the IER, qualifying foreign entrepreneurs can be granted temporary parole status to live and work in the US for up to five years to develop and scale their startups.
What is the International Entrepreneur Rule?
The International Entrepreneur Rule provides a pathway for foreign entrepreneurs to start a business in the U.S. without the need for significant personal investment. Instead, entrepreneurs must secure backing from qualified U.S. investors to demonstrate their start-up’s potential for growth and job creation.
Threshold criteria and key elements of the International Entrepreneur Rule include:
• Entrepreneurs may be either living abroad or already in the United States.
• Start-up entities must have been formed in the United States within the past five years.
Updated Requirements for Entrepreneurs
As of October 1, 2024, the minimum investment and revenue thresholds for the IER have increased:
• Investment Requirement: Entrepreneurs need to show at least $311,071 in qualified investments, up from the previous $264,147.
• Government Grants: The minimum amount of qualified government awards or grants is now $124,429, previously $105,659.
• Re-parole Consideration: The revenue required for re-parole has risen from $528,293 to $622,142.
Notably, USCIS will update Form I-941, Application for Entrepreneur Parole, and its instructions to reflect these updated amounts soon.
Qualifications for Investors
To qualify as an investor under the IER, an individual or organization must have invested at least $746,571 (previously $633,952) in start-up entities over five years. Additionally, two of those entities must meet either of these criteria:
• Created at least five jobs.
• Generated $622,142 in revenue (rather than $528,293), with annual growth of at least 20%.
Parole Period for Entrepreneurs
Entrepreneurs approved under the IER can receive an initial parole period of up to 2.5 years, with the possibility of re-parole for an additional 2.5 years, bringing the maximum stay to five years.
During this time, entrepreneurs can work for their start-up businesses, and their spouses may also apply for employment authorization.
Conclusion
With these new thresholds, the U.S. continues to be a hub for global entrepreneurship, offering a unique opportunity for innovators to build their businesses in the country without making a significant personal investment. Entrepreneurs can leverage this pathway to contribute to the U.S. economy while creating job opportunities.
Source: https://travelobiz.com/us-raises-minimum-investment-thresholds-for-foreign-entrepreneurs/#google_vignette
