Summary: The IER program was terminated in 2018 and is now effective and allows international entrepreneurs to stay and work in the U.S. for their startups. To apply for International Entrepreneur Parole, the applicant must file Form I-941 and pay the application fee ($1200 + $85 biometric fee).

International students with entrepreneurial spirits may wonder if they can work for their businesses through OPT. The answer is yes! Depending on your institution’s policy, students will have to submit the business certificate as proof and update the SEVP portal accordingly.

If you own your business, 1 year of OPT and/or 2 years of STEM OPT extension period will go by quickly and you may wonder if there’s any other way to extend your legal stay in the United States.

This post will look at the Federal Register 82 FR 5238 which is known as the International Entrepreneur Rule (IER).

Contents

• What is the International Entrepreneur Rule (IER)?
• Entry and Travel as a Parolee
• Eligibility for F-1 and OPT students
• Evidence and Documentation
• How about my spouse and dependents?
• Criteria for Consideration for an Additional Parole Period (Re-Parole)

What is the International Entrepreneur Rule (IER)?

The IER is a regulation designed to help talented foreign entrepreneurs build and grow their startup companies within the United States. If approved, it allows these entrepreneurs to stay in the U.S. on “parole” status to focus on their businesses.

It is worth mentioning that the program grants eligible entrepreneurs a “parole” status which is like a special temporary permission to be in the U.S. The IER provides an initial 30-month (2.5-year) stay with the possibility of an additional 30-month extension.

In the same light, if the startup ceases operations in the U.S. or the circumstances change in a way that challenges the public benefit factor of your application, your parole status can be revoked.

If an entrepreneur is granted parole under the IER, they are automatically authorized to work in the United States solely for the startup company they founded.

To start the process, refer to the USCIS’s International Entrepreneur Rule webpage and file Form I-941, Application for Entrepreneur Parole.

Entry and Travel as a Parolee

According to the USCIS’s official website, once F-1 students or any other nonimmigrant visa holders are granted the parole status, they cannot hold both and may depart the U.S. and re-enter as IER parolees.

Upon re-entry at the U.S. port of entry, IER grantees may receive parole for up to the remainder of the two-and-a-half-year initial parole period.

Eligibility for F-1 and OPT students

To meet the eligibility for the IER program, OPT students must:

• Form a U.S.-Based Startup: Your startup must be formed and operating within the United States.
• Significant Ownership: Own at least a 10% stake in your startup.
• Active Role: Demonstrate that you have a central and active role in the startup’s operations, decision-making, and growth.
• Growth Potential: Provide clear evidence that your startup has significant potential for rapid growth and job creation in the U.S. This is often done by showing:
  • Investments: Substantial investment from qualified U.S. investors.
  • Government Funding: Having received significant grants or awards from qualifying U.S. government entities.
  • Alternative Evidence: You may be able to use additional evidence like revenue, customer growth, or recognition from reputable business organizations if you only partially meet the investment or grant requirements.

It is a well-known fact that IER sets a high bar, especially in terms of investment and funding. To increase the chance to win the game, prepare documents to come strong in the following aspects:

• Job Creation Focus: How many U.S. workers have your startup hired? Show the document or prove the potential that your company will contribute to the U.S. by creating jobs for domestic workers.
• Substantial Funding: Have you received any investment from investors? Showing that your startup has received significant investment (at least $250,000 which can be adjusted for inflation) from well-established U.S. investors or qualifying government grants will not only help your company but also your IER application.

To learn more about the specific requirements and the application process, check out the USCIS International Entrepreneur Parole page.

Evidence and Documentation

Based on the IER rules, here is the list of documents foreign entrepreneurs need to prepare for the IER application (Form I-941). To see the list of required documents for Form I-941, click here. :

Entrepreneur’s side:

• Ownership documents proving your stake in the company
• Your resume showcasing your skills and experience relevant to the startup
• Letters of recommendation from investors, government agencies, or business associations
• Additional documents on your position and role in the company

Startup side:

• Evidence of investments and funding (bank records, investment agreements, contracts); and/or
• Government award/grant documentation
• Company formation and registration documents
• Market research, business plans, and financial projections supporting growth potential
• Media coverage, patents, or awards obtained by the startup

Additional evidence:

• User/customer growth numbers
• Revenue generation
• Participation in business accelerators/incubators
• Other indicators of your startup’s potential for success

Please note that USCIS officers evaluate each application individually, meaning there’s no magic formula. What worked for an international entrepreneur may not work for others. The best practice is to focus on proving how your startup would provide a significant public benefit to the U.S. economy and how your role is critical to doing so.

How about my spouse and dependents?

Spouses and unmarried children under 21 may apply for parole alongside or separately from the entrepreneur using Form I-131.

Spouses and children granted parole along with the entrepreneur are not automatically authorized to work. That being said, spouses of entrepreneurs granted parole can apply for work authorization in the U.S. by filing Form I-765.

To learn more about the Employment Authorization Document (EAD) application (Form I-765), check out the following posts. Although posts are written targeting the F-1 visa holders, you will be able to learn what the application looks like and what type of documents you need to file the application successfully:

Related post 1: How to file Form I-765 online for OPT, STEM OPT
Related post 2: Step by step guide to create the USCIS account for OPT online application

Criteria for Consideration for an Additional Parole Period (Re-Parole)

According to the Form I-941 page, entrepreneurs must meet the following criteria to be approved for the re-parole program (Note that the numbers can change at any time. Check out the USCIS page to confirm):

• Startup Progress: The startup must show signs of significant growth since the initial parole.
• Continued Ownership: At least a 5% ownership stake in the startup.
• Continued Active Role: Maintaining a central role in the startup’s operations and growth.
• Additional Investment/Revenue/Jobs:
  • Investment: At least $500,000 in additional qualifying investments during the first parole period.
  • Revenue: Annual revenue reaching at least $500,000 with at least 20% average annual growth.
  • Jobs: Creation of at least 5 full-time jobs for U.S. workers.
• Alternative Criteria: If you partially meet the above, you can still qualify by providing other compelling evidence of the continued potential for growth and job creation.

This post covered what the International Entrepreneur Parole is and what the eligibility is. Please note that the specific eligibility like the investment amount can change in the future to reflect the inflation. Therefore, once you have a grasp of the program, check out the USCIS webpage to confirm the details.

I wish you all the best!