Changes to the International Entrepreneur Program: What You Need to Know
On July 25, 2024, U.S. Citizenship and Immigration Services (USCIS) published a final rule announcing significant changes to the International Entrepreneur Program, effective October 1, 2024. This program, initially established in 2017, allows certain foreign entrepreneurs to apply for parole to start businesses in the United States, provided they can demonstrate potential for rapid growth and job creation. The program has been consistently underutilized, seeing an average of only 19 applications filed per year since its inception. It is an option for entrepreneurs hoping to partner with qualified U.S. investors.
About the International Entrepreneur Program
The International Entrepreneur Program was designed to attract foreign entrepreneurs who can contribute to the U.S. economy through innovative start-ups. Under this program, individuals may receive parole—temporary permission to remain in the U.S.—if they can show that their business will provide significant public benefits, specifically through job creation and business growth. Initially, the program set specific investment and revenue thresholds that entrepreneurs must meet to qualify for parole.
What Has Changed?
1. Inflation Adjustments
The most important change in the new rule is the adjustment of investment and revenue thresholds based on inflation, as measured by the Consumer Price Index for All Urban Consumers (CPI-U). This adjustment is in line with the provision established in the 2017 regulations that requires these amounts to be updated every three years.
2. New Investment and Revenue Requirements
Initial Parole: For applications filed on or after October 1, 2024, entrepreneurs will need to demonstrate:
- A qualified investment of at least $311,071 from one or more qualified investors, or
- An amount of at least $124,429 through one or more qualified government awards or grants.
Re-Parole: For those seeking re-parole, the requirements will be:
- At least $622,142 in qualifying investments or government grants during the initial parole period, or
- Achieving an annual revenue of at least $622,142 with an average annual revenue growth of 20% during the initial parole period.
3. Definition of a “Qualified Investor”
The definition of a qualified investor has also been updated. Now, an individual or entity must have invested a total of no less than $746,571 in start-up entities over a specified five-year period, with at least two entities created at least five jobs or generated the new revenue threshold.
Implications for Entrepreneurs
These adjustments may have both positive and negative implications for potential applicants:
Pros
Increased Clarity: By updating these thresholds regularly, USCIS provides greater clarity for entrepreneurs on the financial benchmarks they need to meet.
Economic Alignment: The adjustments ensure that the requirements remain relevant to current economic conditions, potentially attracting more entrepreneurs who might have been deterred by outdated figures.
Cons
Higher Barriers to Entry: The increase in required investment and revenue amounts might make it more challenging for some entrepreneurs to qualify for the program, particularly those at earlier stages of business development.
Increased Pressure on Start-ups: Newer start-ups may find it difficult to secure the necessary funding or revenue growth within the specified timeframes.
Conclusion
As the International Entrepreneur Program continues to evolve, it remains an available pathway for foreign entrepreneurs who are not citizens of treaty countries and therefore not eligible for the more established E-1 Treaty Trader or E-2 Investor options or those seeking to launch innovative businesses in the U.S. funded and partnered with qualified U.S. investors or through U.S. Government grants and awards. Entrepreneurs interested in applying for parole under this program, should prepare to meet the updated financial criteria and consider the implications of these changes on their business plans.