Effective Date: October 1, 2024
On July 24, 2024, the United States Citizenship and Immigration Services (USCIS) announced an upcoming adjustment to the investment and revenue thresholds under the International Entrepreneur Rule (IER). This change, set to take effect on October 1, 2024, is a routine adjustment made every three years to account for inflation. Notably, the application fee for the IER will remain unchanged.
Background
The International Entrepreneur Rule, first published in 2017, allows the Department of Homeland Security (DHS) to use its parole authority to grant a period of authorized stay to noncitizen entrepreneurs. These entrepreneurs must demonstrate that their startup entity has the potential for rapid growth and job creation, providing significant public benefit. If granted parole, the entrepreneur is authorized to work for their startup entity, and their spouse, if also granted parole, can apply for employment authorization in the United States.
In their recent update to the International Entrepreneur Rule FAQs, USCIS highlighted that there is currently no backlog for IER applications, allowing for the swift adjudication of new applications.
Key Changes
In accordance with the regulation, USCIS will adjust the following dollar figures:
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Initial Application Requirements:
- Qualified Investments: Entrepreneurs must now show at least $311,071 (up from $264,147) in qualified investments from qualifying investors.
- Government Awards or Grants: Entrepreneurs must show at least $124,429 (up from $105,659) in qualified government awards or grants.
- Alternative Criteria: If only partially meeting the investment or award criteria, entrepreneurs can provide alternative reliable and compelling evidence of the startup entity's substantial potential for rapid growth and job creation.
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Second Period of Authorized Stay:
- Funding: The startup entity must have received at least $622,142 (up from $528,293) in qualified investments, government grants, or a combination of such funding.
- Job Creation: The startup entity must have created at least five qualified jobs.
- Revenue: The startup entity must have reached annual revenue of at least $622,142 (up from $528,293) and averaged at least 20% in annual revenue growth.
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Qualified Investor Definition:
- Investment History: Investors must have made investments totaling at least $746,571 (up from $633,952) in startup entities in exchange for equity, convertible debt, or other security.
- Success Metrics: At least two of the startup entities in which the investor has invested must have each created at least five qualified jobs or generated at least $622,142 (up from $528,293) in revenue, with an average annualized revenue growth of at least 20%.
DHS will publish these adjusted dollar amounts in a final rule on July 25, 2024, and the final rule will be effective on October 1, 2024.
Implications for Entrepreneurs and Investors
These adjustments reflect ongoing commitment of USCIS to supporting innovation and entrepreneurship by ensuring that the financial criteria for the International Entrepreneur Rule remain relevant and effective in today's economic climate. While the increase in thresholds may pose a higher bar for some, it also underscores the importance of substantial investment and demonstrated potential for growth in driving economic benefits through the startup ecosystem.
For entrepreneurs and investors, these changes necessitate a reassessment of funding strategies and business plans to ensure compliance with the updated requirements. However, the unchanged application fee provides some stability and predictability in the application process.
At Saluja Law, we are dedicated to keeping you informed about critical updates in immigration policies and regulations. If you have any questions or need assistance with your International Entrepreneur Rule application, please do not hesitate to contact us.
For more detailed information or to schedule a consultation, visit our website or reach out to our office directly.
Saluja Law is committed to providing expert legal advice and support to entrepreneurs navigating the complexities of U.S. immigration law. Stay tuned for more updates and insights on developments that impact your business and immigration journey.