U.S. Increases Investment Requirements for International Entrepreneur Program

Beginning October 1, 2024, the United States (U.S.) will raise the minimum investment and revenue criteria under the International Entrepreneur Rule (IER), making it more challenging for foreign entrepreneurs to establish enterprises in the country.

The IER enables international business entrepreneurs to come to the United States and build their enterprises with the help of qualified investors, rather than using their own money.

However, the new rules will make it more difficult for people to qualify for temporary parole status, which permits them to live and work in the United States for up to five years while starting a business.

What is the International Entrepreneur Rule?

The International Entrepreneur Rule helps foreign entrepreneurs start businesses in the U.S. without needing a large personal investment.

Instead, they must get financial backing from qualified U.S. investors to show their business has potential for growth and job creation. Key requirements include:

  • Entrepreneurs can be living outside the U.S. or already in the country.
  • The startup must have been formed in the U.S. within the past five years.

Important Changes to IER Requirements

From October 1, 2024, the following changes will apply:

  • Investment Requirement: Entrepreneurs must now secure at least $311,071 in qualified investments, up from the previous $264,147.
  • Government Grants: The minimum required for government awards or grants will rise to $124,429, up from $105,659.
  • Re-Parole Revenue: For those seeking an extension to their initial 2.5-year stay, the business must now generate $622,142 in revenue, up from the previous $528,293.

The U.S. Citizenship and Immigration Services (USCIS) will update the application forms to reflect these new amounts.

To qualify as an investor under the IER, individuals or organizations must have invested at least $746,571 in startups over the past five years, up from $633,952.

Additionally, two of the startups that received funding must meet one of the following:

  • Created at least five jobs
  • Generated $622,142 in revenue with a growth rate of at least 20% per year (up from $528,293).

What Entrepreneurs Need to Know

Entrepreneurs who qualify for the IER may initially stay in the United States for up to 2.5 years, with the possibility to extend for another 2.5 years.

During this time, they can concentrate on their startup while their spouses apply for work permits.

These new regulations raise the bar for entrepreneurs seeking to use the IER, focusing on only the most promising business concepts that may generate jobs and benefit the US economy.

While this may make it more difficult for some to qualify, the goal is to encourage high-potential companies to thrive in the United States.

To thrive under the new IER rules, entrepreneurs must focus on the substance of their business ideas rather than simply satisfying fundamental qualifications.

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