U.S. Raises Investment Thresholds for International Entrepreneur Rule

Starting October 1, 2024, the United States (U.S.) will increase the minimum investment and revenue requirements under the International Entrepreneur Rule (IER), making it more difficult for foreign entrepreneurs to start businesses in the country.

The IER allows foreign business founders to come to the U.S. to launch their startups with support from qualified investors, instead of using their own money.

However, the new changes will create higher hurdles for those looking to qualify for temporary parole status, which allows them to live and work in the U.S. for up to five years while building their businesses.

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 under the IER can initially stay in the U.S. for up to 2.5 years, with the option to extend for another 2.5 years.

During this time, they can work on their startup, and their spouses can apply for work permits as well.

These new rules raise the bar for entrepreneurs hoping to use the IER, focusing on supporting only the strongest business ideas that can create jobs and help the U.S. economy.

While this may make it harder for some to qualify, the goal is to encourage high-potential startups to succeed in the U.S.

Entrepreneurs will need to focus more on the strength of their business ideas, rather than just meeting basic qualifications, to succeed under the new IER requirements.