The article discusses the newly relaunched International Entrepreneur (IE) Rule Parole Program for the USA and its requirements. On May 10, 2021, the U.S. Citizenship and Immigration Services (USCIS) announced that it restarted the International Entrepreneur (IE) Parole Program providing new opportunities for foreign-born entrepreneurs to come and live and work in the United States together with their spouses and unmarried children under the age of 21. The USA International Entrepreneur Parole Program is available to all entrepreneurs regardless of their country of origin. To learn more about what is the International Entrepreneur Parole Program please visit our article here.
The purpose of the International Entrepreneur Rule is to encourage foreign entrepreneurs regardless of their citizenship to create and develop start-up businesses with high growth potential in the United States, which can facilitate research and development, create direct and indirect jobs for U.S. workers and generally benefit the U.S. economy through increased business activity, innovation and incidental jobs.
What are the Top Requirements for USA International Entrepreneur Parole Program?
In 2021, the top requirements you must meet to qualify for the USA International Entrepreneur Rule Parole Program are:
- You must create an operating U.S. start-up entity within 5 years prior to filing the international entrepreneur parole application. As an international entrepreneur, you must form a new entity in the United States within 5 years prior to the date of filing the parole application and the entity must do business since its creation and have substantial potential for rapid growth and job creation.
- You must have a substantial ownership interest in the U.S. start-up entity. To meet this requirement, you must have at least 10% ownership interest in the U.S. start-up at the time of adjudication of the international entrepreneur parole application. For renewal, you must have at least 5% ownership interest at the time of adjudication of a re-parole.
- You must have an active and central role in the operations and growth of the start-up’s business, and not simply be a passive investor. Another requirement to qualify for the international entrepreneur parole program is for you to be an entrepreneur that is well-positioned to advance the business of the U.S. entity. The entrepreneur’s knowledge, skills, or experience must substantially assist with the growth and success of the start-up.
- The U.S. start-up must receive significant U.S. capital investment or government funding, or a combination of both, or otherwise must satisfy alternative criteria. In order to meet this requirement for the international entrepreneur parole program, the start-up entity must have received an aggregate of $100,000 in government grants or $250,000 from qualified U.S. investors.
Regarding the investments of capital totalling $250,000 or more from qualified U.S. investors, the capital must come from investors such as venture capital firms, angel investors, or start-up accelerators with a history of substantial investment in successful start-up entities. A qualified investor must have a significant track record of successful investments in other start-ups with investments of at least $600,000 in the last 5 years. Those investments must have resulted in 2 start-ups creating 5 full-time qualified jobs each, not including independent contractors, or $500,000 revenue with an average of 20% annualized revenue growth. The investor must also be a U.S. citizen or lawful permanent resident (green card holder), or an entity majority-owned and controlled, directly or indirectly, by U.S. citizens or lawful permanent residents.
For the government grants, the start-up must have received at least $100,000 in grants from a U.S. federal, state, or local government entity and the grant must be for economic development, research and development, job creation, or another similar monetary award directed at start-ups. The government grant can not be part of a contract for goods or services and must come from an entity or agency with a track record of granting funds to start-ups. If the funding criteria is only partially met, the entrepreneur may provide compelling evidence that the entity has substantial potential for rapid growth and job creation.
How can Malescu Law assist?
The International Entrepreneur Rule is different from a nonimmigrant visa for the United States and is subject to various legal requirements. Our experienced business and immigration lawyers in Miami, Florida USA can assist foreign entrepreneurs with meeting the requirements for the International Entrepreneur Rule parole program for the USA and prepare all the required documentation. Contact us to schedule an appointment for a complete overview of the International Entrepreneur Rule and case evaluation.
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