IER Startup Visa: What the 2024 Changes Mean for Foreign Entrepreneurs

The International Entrepreneur Rule (IER), commonly referred to as the ‘start-up visa’, has long been a vital program for foreign entrepreneurs looking to establish their businesses in the United States.

However, it has experienced a tumultuous journey, from its inception under the Obama administration to legal challenges under the Trump administration, and its recent revival during the Biden era. As the program continues to evolve, new updates have been announced that significantly impact entrepreneurs seeking to benefit from this opportunity.

What is the International Entrepreneur Rule (IER)?

For want of a better term, the International Entrepreneur Rule (IER) is often called the ‘start-up visa.’ The program enables ‘qualified’ foreign entrepreneurs to temporarily enter the U.S. without a traditional work visa or green card. It grants an immigration ‘parole,’ allowing entrepreneurs to stay for up to 2.5 years and potentially extend their stay for another similar period.

The IER was created to foster innovation and entrepreneurship in the U.S., which are seen as driving forces for job creation and economic growth. While it is not technically a visa, it serves as a pathway for entrepreneurs to nurture their startups, create jobs, and contribute to the American economy.

Recent Changes to the IER: What Entrepreneurs Need to Know

The U.S. Citizenship and Immigration Services (USCIS) has announced crucial updates to the IER program, which will take effect starting October 1, 2024. These changes primarily affect the investment and revenue thresholds required for eligibility, as well as the criteria for qualified investors. Let’s break down the new rules:

1. Increased Investment and Grant Thresholds:
   • The minimum qualified investment required for eligibility has increased from $264,147 to $311,071.
   • Similarly, the threshold for government grants or awards has increased from $105,659 to $124,429.
   • Applicants who do not meet these amounts can still apply but must provide additional evidence showcasing their startup’s potential for rapid growth and job creation.
2. New Criteria for Qualified Investors:
   • A ‘qualified’ investor is now defined as one who has made investments of at least $746,571 (previously $633,952) in other U.S. startups.
   • Additionally, at least two of these startups must have created a minimum of five qualified jobs or generated revenue of at least $622,142 (previously $528,293), with an annual revenue growth rate of at least 20%.

These updates are part of an automatic adjustment to the investment and revenue amounts, based on the Consumer Price Index for All Urban Consumers (CPI-U). This ensures that the requirements remain in line with inflation and economic trends.

The Road to IER: A Rocky History

The IER program’s journey has not been without obstacles. Initially introduced at the end of the Obama administration, the program was targeted for removal by the Trump administration before it could even be implemented. This led to a protracted legal battle, with the National Venture Capital Association successfully suing to keep the program alive.

Despite this victory, the IER was not widely utilized under the Trump administration, as efforts to eliminate it continued. However, in May 2021, the Biden administration formally withdrew a proposed rule that would have rescinded the program, reaffirming its commitment to supporting immigrant entrepreneurs.

As a result, the IER program has seen limited usage to date. Since its inception, only 94 International Entrepreneur Parole (IEP) applications have been filed, with just 26 approvals. Approval times can vary significantly, ranging from a few months to several years.

Who Can Apply for the IER Program?

To qualify for the International Entrepreneur Parole, applicants must meet certain criteria:

• Ownership: Entrepreneurs must have at least 10% ownership in a U.S. startup created within the last 5 years.
• Active Role: The applicant must play a central and active role in the operation of the startup.
• Public Benefit: The startup must show a potential positive impact on the U.S. economy through significant investment, grants, or the potential for job creation.

Expert Insight: What Does the Future Hold for the IER?

To gain a deeper understanding of the IER and its potential impact, TOI spoke with Fiona McEntee, an immigration attorney who has been following the program closely. McEntee sees the IER as an essential initiative for promoting innovation in the U.S., explaining, “While it’s not technically a visa, IER provides a critical pathway for immigrant entrepreneurs to enter the U.S. and contribute to the economy. Immigrant entrepreneurs have long been the driving force behind many of the most successful startups in the country.”

McEntee adds, “This program allows entrepreneurs to come to the U.S., build their businesses, create jobs, and inject much-needed innovation into the economy. The changes to the investment and revenue thresholds will likely make it even more competitive, but they also reflect the program’s growing importance.”

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