Introduction
The International Entrepreneur Parole (IEP) program offers non-citizen entrepreneurs the opportunity to temporarily reside in the U.S., with each application evaluated on an individual basis. To qualify, entrepreneurs must satisfy specific criteria that demonstrate the potential of their start-up entity to provide significant public benefits through rapid growth and job creation.
1.Substantial Ownership Interest:
- The entrepreneur should possess a significant ownership stake in a start-up entity.
2.Demonstrate Public Benefit:
- They entrepreneur demonstrate that their presence in the U.S. would yield substantial public benefits through the potential for rapid business growth and job creation by their start-up.
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Eligible Entrepreneurs:
The following are examples of Entrepreneurs who can utilize the IEP program:
1.Entrepreneurs Outside The U.S. With U.S.-Based Investors:
- This category applies to individuals located outside the United States who have secured investment from U.S.-based sources.
2.Entrepreneurs In U.S. Schools or Accelerator Programs:
- This category encompasses individuals attending U.S. educational institutions or participating in accelerator programs, provided they are part of a start-up cohort.
3.Entrepreneurs on U.S. Visas:
- Individuals on specific student or work visas such as F-1, H-1B, L-1, O-1, or E-2, aiming to establish their own companies with financial backing from U.S. investors.
This program provides a vital avenue for noncitizen entrepreneurs to pursue their ventures in the U.S., contributing to economic growth and job creation.
Wondering if your entrepreneurial journey qualifies for the IEP program? Get A FREE Assessment with our immigration law team to find out.
1. IEP Requirements
The entrepreneur must own at least 10% of the company, play a central role in the enterprise, and demonstrate potential for rapid growth.
a.Applicant Requirements
Central And Active Role:
- The applicant must play a central and active role in the operations of the start-up entity.
- The applicant should possess knowledge, skills, or experience that positions them to substantially contribute to the entity’s growth and success.
Substantial Ownership Interest:
- The applicant must hold a significant ownership stake in the start-up entity.
- USCIS considers ownership as substantial if the applicant owns at least 10 percent of the entity at the time of Form I-941 adjudication.
- After receiving parole, the applicant can reduce their ownership below 10 percent during the initial parole period, as long as they maintain at least a 5 percent ownership interest during this time.
NOTE:
The applicant need not be the sole owner. However, no more than three entrepreneurs can be granted international entrepreneur parole based on the same start-up entity.
b.Start-up Entity Requirements
The applicant’s start-up entity must:
- Be a corporation, limited liability company, partnership, or other entity organized under federal law or the laws of any state, and conducting business in the United States.
- Not primarily engage in activities related to the buying, selling, or trading of securities, futures contracts, derivatives, or other similar financial instruments.
- Have been established within the five years preceding the date the applicant submitted their initial parole request and must have been actively conducting lawful business operations since its formation.
- Be an entity with substantial potential for rapid growth and job creation.
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2. Required Funding – Qualified Investment or Government Award or Grant
Entrepreneurs must raise either $264,147 from a “qualified investor” or $105,659 from awards or grants.
a.Investment Option
- Applicant can demonstrate potential through a qualified investment.
- Within 18 months before filing Form I-941, one or more qualified investors must invest at least the required amount.
- Required amount adjusts every 3 years based on the CPI-U.
- Minimum Required Investment on or after October 1, 2024: $311,071
b.Government Award or Grant Option
- Applicant can demonstrate potential through a qualified government award or grant.
- Within 18 months before filing Form I-941, the start-up entity must receive one or more qualified government awards or grants of at least the required amount.
- Qualified awards or grants include those for economic development, research, job creation, etc., by a federal, state, or local government entity (excluding foreign entities).
- Contractual commitments for goods or services don’t qualify.
- Minimum Required Government Awards and Grants On or after October 1, 2024: $124,429
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3. Who Are Qualified Investors
Investors must meet specific conditions, including a minimum investment of $633,952 in the past five years.
Qualified Investment
- To be considered a qualified investment, it must be made in good faith and not an attempt to circumvent any limitations imposed on investments.
- The investment must be lawfully derived capital in a start-up entity, involving the purchase of equity, convertible debt, or other securities convertible into equity typically used in such industry’s financing transactions.
- A qualified investment does not include funding from:
- The entrepreneur.
- The parents, spouse, brother, sister, son, or daughter of the entrepreneur.
- Any entity, such as a corporation, LLC, partnership, or similar structure, where the entrepreneur or their immediate family members have a direct or indirect stake in ownership.
Qualified Investor
- Only investments from qualified investors count towards the minimum investment amount.
- A qualified investor is:
- An individual who is a U.S. citizen or lawful permanent resident (LPR) of the United States.
- An organization located in the United States, majority owned and controlled by U.S. citizens or LPRs.
- A qualified investor must have a track record of making substantial investments in start-up entities and demonstrating substantial growth in terms of revenue generation or job creation over the preceding 5 years.
Investor’s Track Record (Over The Last 5 Years):
- Invested in start-up entities using equity, convertible debt, or similar financial instruments commonly used in their respective industries.
Start-up Performance (Post Investment):
- After the investor’s contribution, at least two of these entities must meet either of the following criteria:
- Created at least five qualified jobs each.
- Generated revenue of at least the amount specified in the chart below and achieved average annualized revenue growth of at least 20 percent.
The table below details the minimum investment amounts and revenue benchmarks that must be met for prior investments from qualified investors:
| Filing Date | Investment Amount | Revenue Amount |
|---|---|---|
| On or after Oct 1, 2024 | $746,571 | $622,142 |
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4. Alternative To Qualified Investors
When Qualified Investors Are Unavailable:
- USCIS accepts alternative evidence which can include:
- User base statistics
- Revenue generation figures
- Funding sources (such as crowdfunding, family and friends, angel investors)
- Media coverage and press about the company’s impact
- Mission alignment with national interests
Partial Meeting of Criteria:
- If the applicant is an entrepreneur in a start-up entity but partially meets the criteria for qualified investments or awards/grants, USCIS may still consider the applicant for entrepreneur parole.
- Additional robust and convincing evidence demonstrating the start-up entity’s strong potential for significant growth and job creation.
- The totality of evidence must serve as a compelling validation of the entity’s substantial potential for rapid growth and job creation.
5. Documents And Evidence
- Submit application to USCIS with supporting evidence of substantial potential for growth and job creation. This includes significant investment, awards, or grants.
a.Entrepreneur
1.Ownership
- The entrepreneur applying for parole must possess a significant ownership stake in the start-up entity.
- USCIS deems at least 10 percent ownership interest as substantial during the initial grant of parole and 5 percent for re-parole.
- Proof of ownership interest may consist of, but is not restricted to the following:
- Organizational documents (e.g., articles of incorporation, bylaws, articles of organization, operating agreement, certificate of partnership, or partnership agreement).
- Equity purchase or grant agreements.
- Equity ledger, certificates, ownership schedules, and capitalization tables.
- Any additional documentation that is relevant, persuasive, and supports the proof of ownership.
2.Central And Active Role In A Start-up Entity
- The applicant must play a significant and active role in driving the operations and success of the start-up entity.
- This role should position the applicant, due to their knowledge, skills, or experience, to substantially assist the entity with its growth and success.
- Additional supporting evidence might include, but is not limited to:
- Letters from pertinent government bodies, qualified investors, or reputable business organizations.
- News articles or similar evidence indicating significant attention and recognition.
- Documentation of participation in reputable start-up accelerators.
- Evidence of active and central role in prior successful start-ups or relevant business entities.
- Academic degrees or other relevant documentation showcasing expertise.
- Intellectual property documentation (e.g., patents) obtained through the applicant’s efforts.
- Position description.
- Any other relevant, probative, and credible evidence demonstrating the applicant’s capacity to advance the entity’s business in the United States.
b.Start-up Entity
- A start-up entity is defined as a U.S. business entity that:
- Was recently formed.
- Has lawfully conducted business during any period of operation since its date of formation.
- Exhibits strong potential for significant growth and job creation.
- Evidence to establish that the company meets the criteria of a start-up entity may encompass, but is not restricted to:
- Organizational documents (e.g., articles of incorporation, bylaws, articles of organization, operating agreements, certificates of partnership, partnership agreements, or other evidence of formation, as applicable).
- Tax records.
- Financial records.
- Any other pertinent documentation.
c.Qualified Investment, Award, or Grant
1.Investment Option
- Source of The Investment:
- Individual Investor:
- Provide evidence demonstrating the investor is a U.S. citizen or LPR (copy of government-issued ID with photo, name, and date of birth).
- Organizational Investor:
- Submit evidence showing the organization operates under U.S. laws (organizational documents like articles of incorporation, bylaws, etc.).
- Provide proof that the investing organization is majority owned and controlled by U.S. citizens or LPRs (ownership structure chart, evidence of ownership and control).
- Individual Investor:
- Receipt of the Investment:
- Show evidence of the investment being received by the start-up entity (bank records, accounting documents, or ownership records).
- Demonstrating Track Record:
- Individual or Organizational Investor:
- Provide evidence of successful investments in start-up entities (bank records, agreements, certificates, etc.).
- Individual or Organizational Investor:
-
Satisfying Job Creation or Revenue Generation:
- Submit documentation such as tax records, payroll records, Form I-9, or audited financial statements.
2.Government Award or Grant Option
- Provide evidence that the award or grant is for economic development, research and development, or job creation, issued by a U.S. government entity.
- Evidence may include copies of award letters, official documentation confirming the award or grant, and bank records confirming receipt.
3.Alternative Evidence Option
- If only some of the criteria are met, consider providing additional persuasive and credible evidence demonstrating the start-up entity’s strong potential for significant growth and job creation.
- Evidence may include, but is not limited to:
- Number of users or customers.
- Revenue generated.
- Additional investments or fundraising.
- Social impact.
- National scope.
- Positive effects on the locality or region.
d.Significant Public Benefit
To demonstrate significant public benefit, in addition to meeting investment, grant, or award criteria, the applicant should provide supporting evidence of their start-up idea’s potential for rapid growth and job creation:
- Evidence of Financial Support:
- Investments from investors, government awards or grants, or revenue generation (bank records, wire transfers, agreements, certificates, ledgers, or capitalization tables).
- Endorsements And Confirmations:
- Letters from relevant government agencies, qualified investors, or established business associations confirming the potential of the entity’s research, products, or services.
- Recognition And Attention:
- Newspaper articles or similar evidence showcasing significant attention or recognition received by the applicant or their entity.
- Participation In Reputable Programs:
- Evidence of participation, current or past, in established and reputable start-up accelerators.
- Focus on Innovation:
- Patent awards or associated materials that highlight the commitment to pioneering innovations or advancing groundbreaking research.
- Proven Track Record:
- Evidence of active and central roles in prior start-ups, confirmed by relevant authorities or investors.
- Expertise And Qualifications:
- Degrees or relevant documentation showcasing the applicant’s knowledge, skills, or experience advancing the entity’s business.
- Job Creation Records:
- Tax, payroll records, I-9 records, or other documents indicating the entity’s history of creating qualified jobs.
- Additional Reliable Evidence:
- Any other reliable evidence demonstrating the entity’s potential for growth and the applicant’s capacity to advance its business in the U.S.
- Alternative Evidence:
- If the listed evidence doesn’t apply, any other evidence showing that granting parole would offer a significant public benefit to the U.S. based on the applicant’s role as the entrepreneur of a start-up entity.
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6. Family Members
Entrepreneur’s Family Benefits:
- Stay and Work Privileges:
- The entrepreneur’s family can reside in the U.S., and the spouse is eligible to seek employment.
Family Parole Application:
- Eligibility For Parole:
- The entrepreneur’s spouse and children may apply for parole, which will be granted for a duration matching the entrepreneur’s parole period.
- Application Process:
- The entrepreneur’s spouse and children seeking parole as derivatives must individually submit an Application for Travel Document (Form I-131) along with evidence demonstrating their qualifying relationship with the entrepreneur and reasons for parole, at the discretion of authorities.
Work Authorization For Spouse:
- Eligibility For Employment:
- After being paroled into the United States, the entrepreneur’s spouse may be eligible for employment authorization based on their parole status.
- Application Process:
- For employment authorization, an eligible spouse paroled into the U.S. must file an Application for Employment Authorization (Form I-765) and provide supporting evidence of the spousal relationship.
Child’s Employment Authorization:
- Limitation on Employment:
- A child of the entrepreneur parolee is not authorized and cannot accept employment based on parole status.
7. Duration of Stay
- Initially permitted for 2.5 years, extendable for another 2.5 years. The goal is to qualify for another visa category or a green card within five years.
8. Parole Conditions And Termination
Entrepreneurial Work Restrictions:
- Entrepreneurs are limited to working solely for the startup and are not allowed to engage in other forms of employment.
USCIS Discretion And Conditions:
- USCIS holds the authority to impose reasonable conditions on parolees and may request verification of compliance at any time.
- Violation of any parole condition may result in termination or denial of re-parole.
Termination of Parole:
- USCIS may, at its discretion, terminate international entrepreneur parole without prior notice if it determines that the entrepreneur’s continued presence in the U.S. no longer provides significant public benefit.
- Alternatively, USCIS may provide notice and an opportunity to respond before termination.
Conditions of International Entrepreneur Parole:
- Parolees must maintain household income exceeding 400 percent of the federal poverty guidelines for their household size defined by the U.S. Department of Health and Human Services.
Reporting Material Changes:
- Parolees must promptly report any significant changes to USCIS.
- If the entrepreneur will no longer be employed by the startup entity or will cease to possess a qualifying ownership stake, immediate written notification to USCIS is required.
- If the entrepreneur remains employed by the startup entity and maintains a qualifying ownership interest, they must submit the Application for Entrepreneur Parole (Form I-941) along with the applicable fee to notify USCIS of the change.
Examples of Material Changes Include, But Are Not Limited To:
- Any criminal charges, convictions, pleas, or other judicial determinations involving the entrepreneur or start-up entity.
- Complaints, settlements, judgments, or other determinations in legal or administrative proceedings involving the entrepreneur or start-up entity.
- Sale or substantial disposition of the start-up entity’s assets.
- Dissolution, liquidation, or cessation of operations of the start-up entity.
- Bankruptcy filings related to the start-up entity.
- Significant changes in ownership and control of the start-up entity.
- Cessation of the entrepreneur’s qualifying ownership interest in the start-up entity or their central and active role in its operations.
Automatic Termination:
- International entrepreneur parole or re-parole automatically ends upon the expiration of the authorized parole period, unless a non-frivolous application for re-parole is filed during the initial parole period.
- USCIS automatically terminates parole if the parolee notifies in writing that they will no longer be employed by the start-up entity or will no longer possess a qualifying ownership stake.
Consequences of Automatic Termination:
- When an entrepreneur’s parole automatically ends, the parole of their spouse or child also automatically ends. Any employment authorization based on terminated parole is automatically revoked.
Termination on Notice:
- USCIS may terminate parole or re-parole upon written notice if they believe that the information provided in the parole request was inaccurate, if there was a failure to comply with material change reporting requirements, if the entrepreneur is no longer employed in a central and active role, if parole terms were violated, or if parole was erroneously granted.
Notices of Intent To Terminate:
- A notice of intent to terminate explains the grounds for parole termination and allows up to 30 days for a written rebuttal. The parolee may submit additional evidence to support the rebuttal. USCIS considers all relevant evidence before making a decision. Failure to respond in time leads to parole termination.
Charging Documents And Termination:
- If a charging document is served on the parolee, it serves as written notice of parole termination, unless stated otherwise.
Termination Decisions:
- There is no appeal process for the termination of international entrepreneur parole. However, USCIS may reopen or reconsider a termination at its own discretion.
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9. Travel And Final Determination
After Approval Process:
- USCIS may, at its discretion, approve the application for parole for up to 30 months if the applicant demonstrates significant public benefit.
Applicants In The United States:
- If the applicant is in the U.S. when approved, they must obtain an advance parole document (Form I-512L).
- The applicant should depart the U.S. and then appear at a U.S. port of entry for a final parole determination by U.S. Customs and Border Protection (CBP).
- Note: A pending or conditionally approved application does not allow the applicant to stay beyond their authorized period of stay.
Applicants Outside The United States:
- Except for Canadian nationals traveling directly from Canada, those outside the U.S. upon approval must visit a U.S. embassy or consulate for travel documentation before appearing at a U.S. port of entry for a final parole determination.
- Canadian nationals can present Form I-941 directly at the U.S. port of entry without prior travel documentation.
Biometrics:
- Applicants residing outside the U.S. and seeking initial parole must submit biometrics. USCIS will provide details on where to submit them.
Grant of Parole:
- While advance parole authorization doesn’t guarantee travel documentation issuance by DOS or parole by CBP, it allows the applicant to be issued a travel document (in place of a visa).
- This document indicates that, under certain conditions, and if circumstances don’t significantly change, CBP is likely to favorably exercise discretion for parole at a port of entry.
10. Processing Times
- Processing times can be unpredictable, potentially making this program less attractive to entrepreneurs.
11. IEP Extensions
Additional Periods of Parole:
- A parolee can be considered for re-parole for up to 30 months if they demonstrate continued significant public benefit as an international entrepreneur.
Filing For Re-Parole:
- Before the initial period of parole expires, an entrepreneur parolee can request an additional period based on the same start-up entity.
- They must timely file an Application for Entrepreneur Parole (Form I-941).
Criteria For Re-Parole Consideration:
- The parolee must show they remain an entrepreneur and the entity still qualifies as a start-up.
- The required ownership stake for re-parole is reduced to a minimum of 5% in the start-up entity at the time USCIS reviews the application.
General Criteria For Re-Parole:
- The Entity Must Have:
- Received a qualified investment, qualified government grants or awards, or a combination thereof, meeting specified amounts, or
- Created at least five qualified jobs within the start-up entity, or
- Attained annual revenue in the U.S. meeting specified amounts, with an average annual revenue growth of 20 percent.
Required Amounts (Based on Form I-941 Filing Date) on or after October 1, 2024 for Re-Parole Investment category is $622,142.
Alternative Criteria For Re-Parole:
- If the parolee partially meets the general criteria, they may submit other compelling evidence of the start-up entity’s potential for rapid growth and job creation.
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12. Denials
- USCIS has the discretionary authority to grant international entrepreneur parole (IEP) on a case-by-case basis.
- The officer assesses, based on the totality of evidence, whether the applicant’s presence in the United States will provide a significant public benefit and if the applicant merits a favorable exercise of discretion.
- USCIS considers all evidence, including any derogatory information such as evidence of criminal activity or national security concerns, in determining the applicant’s eligibility.
- If the applicant doesn’t demonstrate that their presence would offer a significant public benefit and a favorable exercise of discretion is warranted, the application will be denied.
- USCIS notifies the applicant in writing, providing specific reasons for the denial.
- An applicant is not allowed to app USCIS considers all evidence, including any derogatory information such as evidence of criminal activity or national security concerns, in determining the applicant’s eligibility.
- Appeal, or request to reopen or reconsider a denial of international entrepreneur parole. However, USCIS may reopen or reconsider a denial on its own motion.
Conclusion
Embarking on the U.S. entrepreneurial journey as a foreign-born founder is full of promise and potential. Whether you’re abroad, or in the U.S. as a student or worker, we’re here to help you kickstart your American venture.
We’re not just about facilitating startups; we’re about empowering dreams. Our dedicated team will guide you from initial business planning to navigating the intricacies of the International Entrepreneur Parole, ensuring that your venture complies with immigration requirements while setting the foundation for success.
The journey of foreign-born entrepreneurs in the U.S. is inspiring, and we’re committed to turning your vision into reality. Take the first step towards your U.S. venture. Schedule A FREE Assessment with our seasoned Immigration Law Lawyers today, and let’s build something extraordinary!
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