International entrepreneurs and U.S. investors might be interested to know that the Biden administration recently revived the International Entrepreneur Rule (IER), which was first introduced under the Obama Administration and was suspended under Trump's administration.
According to the federal government, the IER could benefit America's economy while simultaneously encouraging quality entities to start viable businesses on U.S. soil, thereby stirring greater innovation and economic success for the United States.
To be clear, qualified immigrant entrepreneurs do not gain permanent residence, citizenship, or even a visa under this new rule. However, it could be a good option for the immigrant entrepreneurs to move to the U.S. temporarily to start-up and grow a business.
Under the IER, a period of authorized stay, i.e. “parole,” can be granted to immigrant entrepreneurs able to prove themselves and their businesses are a significant benefit to society. The government will screen and grant parole to applicants on a case-by-case basis.
Generally, the IER requires that:
- The company must have been started within the past five year in the US
- The entrepreneur must have an active role (assist with growth and success of business) and have at least 10% of the ownership
The company is successful as proven by one of the following criteria:
- An established record of successful investments from qualified US investors;
- Government awards and grants have been allocated to the company for economic development, research, job creation, innovation, etc.; or
- Provide strong evidence that the entity has the capability to prosper.
Parole can be approved for up to three entrepreneurs per start up company. The initial approved period of stay is 2.5 years. An additional extension of 2.5 years can be granted if certain criteria are met.
To apply for entrepreneurial parole, you must file the Form I-941 with supplemental documents and fees (Form fee and Biometric Services fee). The entrepreneur's spouse and minor unmarried children can also obtain parole but must apply separately using the I-131 form. Spouses may apply for separate employment authorization.
This article is provided as an educational service and is not legal advice. Consult with an attorney for your specific circumstances. For a comprehensive evaluation of your immigration situation and options, including the IER, you are invited to call us at 214-494-8033, text us using the chat box, or complete our contact form.