What Is The International Entrepreneur Rule And How Does It Allow Temporary Stay In The US?

Under the International Entrepreneur Rule (IER), the Department of Homeland Security (DHS) has the authority to grant a period of authorized stay on an individual basis.

The authorized period of stay is referred to as ‘parole’ under this rule. Entrepreneurs granted parole are permitted to work exclusively for their startup business. Additionally, the spouse and children of the noncitizen entrepreneur may also qualify for parole.

Key criteria for IER eligibility include:

Entrepreneurs can be based abroad or already residing in the United States.
Startups must have been established in the US within the last five years.
Startups need to show at least $264,147 in investments from eligible investors, or $105,659 in government grants, awards, or alternative proof.
The entrepreneur’s spouse can seek employment authorization after entering the US on parole, but children are ineligible for employment authorization.
Initially, entrepreneurs may receive parole for up to 2½ years. If approved for re-parole based on meeting additional benchmarks like funding, job creation, or revenue, they can extend their stay for another 2½ years, totaling a maximum of 5 years.

Each startup can have up to 3 entrepreneurs eligible for parole under the IER.

Threshold criteria for entrepreneurs: USCIS considers ownership interest ‘substantial’ if the applicant owns at least 10% of the startup entity during the initial parole adjudication, and at least 5% during subsequent re-parole adjudication.

Threshold criteria for the start-up entity:

A qualified investment includes equity purchases, convertible debt, or other securities commonly used in financing transactions within the start-up’s industry. Personal or bank loans that cannot convert into equity are generally not considered qualified investments.
The start-up should demonstrate substantial potential for rapid growth and job creation through significant capital investments from US investors with proven track records in start-up financing.
Additionally, the start-up can demonstrate this potential through substantial awards or grants from specified federal, state, or local government entities known for funding start-ups.
While USCIS doesn’t mandate that at least 50% of the capital comes from US citizens or lawful permanent residents, the start-up must still prove majority ownership and control by US citizens or lawful permanent residents, both directly and indirectly.

Threshold criteria for spouse and children:

While the entrepreneur files Form I-941, the spouse and unmarried children under 21 years old may file Form I-131, Application for Travel Document, accompanied by the required fee ($630) and evidence confirming their relationship to the entrepreneur as spouse or child of an entrepreneur parolee or applicant.

The start-up must have received a qualified investment of at least $264,147 from one or more qualified investors within 18 months prior to filing Form I-941.

To apply, submit Form I-941, Application for Entrepreneur Parole, along with the required fee of $1,200 and supporting documents. Form I-131 cannot be filed online.

Processing Time: Currently, Form I-941 does not qualify for premium processing. While you can request expedited processing, USCIS has sole discretion over whether to approve it.

Next Steps After Approval: If your Form I-941 is conditionally approved and you are outside the US, you must visit a US embassy or consulate to finalize parole processing and obtain travel documentation (e.g., boarding foil) before entering a US port of entry for a final parole decision.

If approved and you are already in the US, travel documentation will be mailed to your US address listed on Form I-941. You must leave the US and present your travel documentation at a US port of entry for a final parole decision.

If your Form I-941 is approved and you are paroled into the United States under the IER after entering through a US port of entry, you are automatically authorized to work for your start-up entity without needing to file a separate work authorization form.

Travel with IER Approval: This immigration benefit differs from a visa, which typically allows multiple entries and provides a specific status aligned with the visa. International Entrepreneur Rule approval allows a single entry into the US under parole status. Once in the US, you can apply for advance parole and use the advance parole card for travel purposes.