USCIS Revives its Program for International Entrepreneurs
U.S. Citizenship and Immigration Services (USCIS) has announced that it will resume its International Entrepreneur Parole Program (“IEPP”), which will allow certain international entrepreneurs temporary stay in the U.S. so that they may start or scale their businesses here.
This program does not grant an immigration status to the approved international entrepreneurs (such as an O-1 or H-1B visa) and is not a path to permanent residence. It offers discretionary permission to enter and remain in the U.S. The legal term for the permission to enter and stay is “parole.”
Eligibility Criteria: Under the IEPP, DHS may grant admission to entrepreneurs of startup enterprises if the following requirements are met:
1) Entrepreneur has a significant ownership interest in the startup (at least 10 percent);
2) S/he plays an active and central role in its operations (not a passive investor);
3) Startup was established in the United States within the past five years; and
4) The startup can show substantial potential for rapid business growth and job creation, as evidenced by:
a) Receiving significant investment of capital (at least $250,000) from certain qualified U.S. investors with established records of successful investments (relatives would not qualify as investors);
b) Receiving significant awards or grants (at least $100,000) from certain federal, state or local government entities; or
c) Partially satisfying one or both of the above criteria in addition to other reliable and compelling evidence of the startup’s substantial potential for rapid growth and job creation.
Although there is no minimum salary requirement to qualify as an International Entrepreneur, an applicant must show that his or her household income (calculated on the number of accompanying dependents, if any) is 400% above the poverty guidelines. The household income requirement could be satisfied by the income of the applicant’s spouse.
No more than three international entrepreneurs can be granted admission per startup.
Application Process: The request for Entrepreneur Parole is made on Form I-941 and has a $1,285 government filing fee, which includes the fee for biometrics. If an application is denied, an appeal is not permitted.
Accompanying Dependents: Under the IEPP, the applicant’s spouse and children under 21 may join him or her in the US. The spouse also can obtain work authorization.
Duration of Stay: Entrepreneurs may be granted an initial stay of up to two years to oversee and grow their startup entity in the United States. An extension for up to three additional years for a maximum of five years may be granted if the entrepreneur and the startup entity continue to provide a significant public benefit as evidenced by substantial increases in capital investment, revenue or job creation.
By way of background, this program was introduced by the Obama administration in January 2017, and was scheduled to take effect on July 16, 2017. The Trump administration decided to withdraw the program, which was challenged in court. Although the court found that the program could not be withdrawn and that USCIS should accept applications for the entrepreneur parole, the program felt uncertain and there wasn’t any visibility on whether USCIS would actually comply. The recent announcement by USCIS confirming that this program is up and running is welcome news for international entrepreneurs.
This alert is for informational purposes only. Please contact me if you would like to discuss this development further.