The International Entrepreneur Parole Rule (IER) has been reinstated after being suspended in 2018 under the Trump administration. The IER provides a pathway for foreign entrepreneurs to contribute to the U.S. economy. Under the IER, the Department of Homeland Security can utilize its parole authority to offer a designated period of authorized stay to non-citizen entrepreneurs on a case-by-case basis. [USCIS website]
The 8 CFR section 212.19 outlines the regulations governing the IER. It details the criteria and requirements for startup founders seeking parole status in the United States.
Originally proposed during the Obama era, the IER aims to attract global entrepreneurial talent, fostering innovation and job creation. Its revival comes after persistent advocacy efforts and recognition of its potential to bolster economic growth.
However, the Trump administration delayed the implementation of the IER before it could fully take effect, and ultimately, in 2018, it was rescinded before it could be fully enacted.
Advocacy groups, entrepreneurs, venture capitalists, and policymakers pushed for the reinstatement of the IER. Amidst changing political landscapes and shifting priorities, discussions around reinstating the rule gained traction.
Exploring Eligibility Criteria, Investment Options, and Regulatory Landscape
Entrepreneurs seeking parole under this regulation must meet the following requirements for consideration:
Criteria for Applicants and Start-up Entities
To seek parole as an international entrepreneur, individuals must file an Application for Entrepreneur Parole (Form I-941). This will demonstrate how their entrepreneurial involvement with a start-up entity benefits the U.S. public. This entity should show substantial potential for rapid growth and job creation. Applicants can apply whether they are inside or outside the U.S., including those in nonimmigrant status or lacking such status.
Upon approval of Form I-941, applicants within the U.S. must leave and request parole upon re-entry. However, those in the U.S. without lawful status may face immigration consequences upon departure if their Arrival/Departure Record (Form I-94) has expired.
Requirements for Applicants
- Central and Active Role
Applicants must play a pivotal and active role in the start-up’s operations, utilizing their knowledge, skills, or experience to significantly contribute to its success.
- Substantial Ownership Interest
Applicants must hold a substantial ownership stake in the start-up entity, typically defined as at least a 10 percent ownership interest at the time of Form I-941 adjudication. During the initial parole period, maintaining at least a 5 percent ownership interest is required, even if the ownership drops below 10 percent.
The number of entrepreneurs granted parole for the same start-up entity cannot exceed three.
Requirements for Start-up Entities
The start-up entity must:
- Be organized under federal law or the laws of any state and conduct business in the U.S.
- Not primarily engaged in securities trading.
- Have been formed within the five years preceding the initial parole application and operating lawfully since formation.
- Demonstrate substantial potential for rapid growth and job creation.
Investment or Government Award/Graft Qualification
Investment Option
Entrepreneurs can exhibit their start-up’s potential for growth and job creation through a qualified investment. Within 18 months before filing Form I-941, qualified investors must collectively contribute at least the specified amount, which adjusts every three years according to the Consumer Price Index for All Urban Consumers (CPI-U).
To qualify, investments must be lawful and not intended to circumvent investment regulations. They should involve acquiring equity, convertible debt, or similar securities in the start-up. Importantly, investments from the entrepreneur, their family members, or related entities are not considered.
Required Amount of Investment in the Start-up
| Filing Date | Investment Amount |
| Before October 1, 2021 | $250,000 |
| After October 1, 2021 | $264,147 |
Although entrepreneurs can invest personally, only investments from qualified investors count towards the minimum required amount. These investors are either U.S. citizens, lawful permanent residents, or organizations operating within the U.S. Majority-owned and controlled by U.S. citizens or permanent residents, qualified investors must regularly make substantial investments in start-ups, leading to significant revenue growth or job creation.
Required Investment and Revenue Amounts for Qualified Investors’ Prior Investments
| Filing Date | Investment Amount | Revenue Amount |
| Before October 1, 2021 | $600,000 | $500,000 |
| After October 2, 2021 | $633,952 | $528,293 |
Government Award or Grant Opportunity
Entrepreneurs can also demonstrate their start-up’s potential through qualified government awards or grants received within the 18 months preceding Form I-941 submission. Typically for economic or research development or job creation, these awards must meet minimum required amounts set by federal, state, or local government entities.
These awards do not include contractual commitments for goods or services. The minimum required amounts vary based on the filing date, with adjustments for inflation.
Government awards and grant amounts
| Filing Date | Award or Grant Amount |
| Before October 1, 2021 | $100,000 |
| After October 2, 2021 | $105,659 |
Alternative Approach
Entrepreneurs who partially meet investment or grant criteria may still be considered for entrepreneur parole if they provide additional convincing evidence of their start-up’s potential for growth and job creation. This evidence must collectively validate the entity’s significant potential for rapid expansion and job generation.
Significant Public Benefit
No specific definition of “significant public benefit” is outlined in statutes or regulations. Instead, parole determinations are made on a case-by-case basis, relying on the comprehensive evaluation of individual circumstances.
Next Steps Following Parole Approval
Entrepreneurs granted parole, whether as employers or employees, must complete Form I-9, Employment Eligibility Verification. For employees who are entrepreneurs granted parole, the following documents establish identity and employment authorization for Form I-9 purposes under List A:
- A foreign passport.
- Form I-94, Arrival/Departure Record, which indicates entrepreneur parole (PE-1) as the class of admission and includes:
- The same name as the passport.
- An endorsement of the individual’s parole, provided that the endorsement period has not expired and the proposed employment aligns with any stated restrictions or limitations.
For detailed information on Form I-9 requirements, refer to I-9 Central. Additionally, the spouse of a noncitizen entrepreneur granted parole may qualify for parole and apply for work authorization upon arrival in the United States, contingent upon DHS issuing them a Form I-766, Employment Authorization Document. However, children of entrepreneurs granted parole do not qualify for employment based on this parole.
Strategies for Maximizing Success in Pursuing Entrepreneurial Ambitions
Entrepreneurs from around the world are poised to benefit significantly from the reinstatement of the IER. Entrepreneurs can harness the opportunities presented by the IER by engaging in the following actions:
- Entrepreneurs must thoroughly analyze how their business ventures can positively impact the U.S. economy. This may involve outlining plans for job creation, innovation, or other contributions to the local community or industry. Providing detailed projections and evidence of potential benefits will strengthen their case under the IER.
- Entrepreneurs must familiarize themselves with the specific requirements and procedures set forth by the Department of Homeland Security for the IER. This includes understanding the documentation needed, such as business plans, financial records, and proof of entrepreneurial experience. By ensuring compliance with all eligibility criteria and following the prescribed application process, entrepreneurs can increase their chances of success.
- Entrepreneurs should seek guidance in navigating immigration law complexities, particularly when pursuing temporary residency under the IER. Consulting with immigration experts or legal professionals who specialize in entrepreneurial immigration can provide invaluable assistance. These professionals can offer guidance on preparing a strong application, addressing any legal complexities, and navigating potential obstacles throughout the process.