USCIS Updates International Entrepreneur Rule to Boost Foreign Start-Ups in the U.S.

U.S. Citizenship and Immigration Services (USCIS) has released updated details on the International Entrepreneur Rule (IER), an Obama-era initiative that permits foreign entrepreneurs to establish businesses in the United States.

Introduced in January 2017, the IER allows foreign entrepreneurs to stay in the U.S. to grow their businesses. Although the Trump administration attempted to suspend the rule in 2018 due to implementation concerns, a court ruling mandated that DHS accept applications. The Biden administration has since reaffirmed its support for the IER, recognizing it as a valuable pathway for international entrepreneurs to contribute to the U.S. economy.

Despite this support, the program has seen limited success. Since FY 2021, USCIS has received 94 applications, with 26 approved, 28 rejected, and 40 pending or withdrawn.

In a bid to invigorate the program, USCIS published updated information on July 12, 2024, which includes a comprehensive FAQ section. The updates specify that start-up entities must demonstrate significant potential for rapid growth and job creation by securing at least $264,147 in qualified investments from eligible investors, $105,659 in qualified government awards or grants, or presenting alternative evidence.

To qualify for the program, entrepreneurs must meet the following criteria:

• Be involved with a U.S. start-up established within the past five years.
• Reside either abroad or already in the United States.
• The start-up must have been formed in the U.S. within the past five years.
• Up to three entrepreneurs per start-up may be eligible.
• Spouses of entrepreneurs can apply for work authorization, but children cannot.

Under the IER, entrepreneurs can receive an initial stay of up to 2.5 years to oversee and grow their business in the U.S. An extension of up to 2.5 additional years may be granted if the start-up continues to provide significant public benefits, demonstrated by substantial increases in capital investment, revenue, or job creation.