USCIS Announces New Investment and Revenue Requirements for Foreign Entrepreneurs

USCIS Announces New Investment and Revenue Requirements for Foreign Entrepreneurs

The United States Citizenship and Immigration Services (USCIS) will raise the investment and revenue thresholds for foreign entrepreneurs applying for a visa under the International Entrepreneur Rule (IER), effective October 1, 2024. This adjustment, mandated every three years, ensures that the thresholds keep pace with inflation. Notably, the application fee will remain unchanged.

Background

The International Entrepreneur Rule, established in 2017, provides a framework for the Department of Homeland Security (DHS) to use its parole authority to grant authorized stay periods to noncitizen entrepreneurs. This is determined on a case-by-case basis, aimed at individuals whose startup entities demonstrate significant potential for rapid growth and job creation. Entrepreneurs granted parole are authorized to work for their startup entities, and their spouses may also apply for employment authorization in the United States.

Recently, USCIS updated its International Entrepreneur Rule FAQs, noting the absence of a backlog and expressing readiness to process new applications swiftly. The final rule requires USCIS to adjust the investment and revenue thresholds in 8 CFR 212.19 for inflation every three years. The next adjustment is set to take effect on October 1, 2024.

Key Changes

As stipulated by regulation, the following adjustments will be made:

1. Initial Application Thresholds:

• Entrepreneurs must demonstrate their startup entity’s substantial potential for rapid growth and job creation by showing at least $311,071 (currently $264,147) in qualified investments from qualifying investors, or
• At least $124,429 (currently $105,659) in qualified government awards or grants, or
• If only partially meeting the threshold investment or award criteria, alternative reliable and compelling evidence of the startup entity’s substantial potential for rapid growth and job creation.

2. Second Period of Authorized Stay:

Entrepreneurs must generally demonstrate that their startup entity has either:

• Received qualified investments, government grants, or a combination of such funding of at least $622,142 (currently $528,293), or
• Created at least five qualified jobs, or
• Reached annual revenue in the United States of at least $622,142 (currently $528,293) and averaged at least 20% in annual revenue growth.

3. Qualified Investor Definition:

A qualified investor is defined as an individual or organization with a history of substantial investment in successful startup entities. Specifically, over the preceding five years:

• The investor must have made investments in startup entities totaling at least $746,571 (currently $633,952) in exchange for equity, convertible debt, or other security convertible into equity commonly used in financing transactions within the startup entities’ respective industries, and
• After such investments, at least two startup entities must have each created at least five qualified jobs or generated at least $622,142 (currently $528,293) in revenue with average annualized revenue growth of at least 20%.

DHS will publish these adjusted dollar amounts in a final rule on July 25, 2024, with the final rule taking effect on October 1, 2024. Importantly, the application fee will not change at this time.

The adjustment of investment and revenue thresholds under the International Entrepreneur Rule reflects the need to keep pace with economic changes and inflation. By increasing these thresholds, USCIS aims to ensure that the criteria for noncitizen entrepreneurs to gain authorized stay in the United States remain robust and relevant. Entrepreneurs and their investors should take note of these changes and prepare accordingly for their applications post-October 1, 2024.

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