Startup entrepreneurs can stay in US for 5 years: Here's what you must know

The 'International Entrepreneur Rule' , allows non-citizen entrepreneurs to apply for an authorised stay in the United States for up to five years

Good news for entrepreneurs! The US is making it easier for business owners and entrepreneurs to extend their stay. You may be familiar with the Obama-era programme called the 'International Entrepreneur Rule' (IER). Under this programme, foreign entrepreneurs were initially allowed to stay in the US for two-and-a-half years. Now, according to the US Citizenship and Immigration Services (USCIS), they can remain for up to five years if their ventures meet specific criteria such as funding milestones and job creation.

What is the International Entrepreneur Rule?

The IER, run by the Department of Homeland Security (DHS), allows non-citizen entrepreneurs to apply for an authorised stay in the United States, known as "parole." This is based on the public benefit their business provides. Entrepreneurs can work exclusively for their startup, and their spouses are also eligible for parole and work authorisation, though their children are not.

Entrepreneurs can apply whether they are abroad or already in the US.

What are the key criteria for IER?

Startup age: The startup must have been established in the US within the past five years.

Growth potential: The startup must show potential for rapid growth and job creation, backed by investments of at least $264,147 (Rs 2.2 crore) from qualifying investors or $105,659 (Rs 88 lakh) in government awards, grants, or other evidence.

Parole duration: Initially granted for up to 2.5 years, which can be extended up to a total of 5 years if additional criteria are met.

Number of entrepreneurs: Up to three entrepreneurs per startup can be eligible for parole under this rule.

Spouse employment: The spouse can seek employment authorisation after entering the US, but this does not apply to children.

How do you qualify?

Ownership and role requirements:

Ownership: You must have at least 10% ownership in the startup.

Role: You must be actively involved in the day-to-day operations and decision-making of the startup.

Startup requirements:

Business entity: The startup must be legally registered and operating in the US, formed within the last five years.

Growth potential: Must demonstrate potential for rapid growth and job creation.

Funding requirements:

Investment: At least $264,147 from qualifying investors or $105,659 from US government awards or grants.

Alternative evidence: Additional credible evidence can also be submitted to show the startup’s potential for growth.

Family and employment

Spouse: Can apply for parole and work authorisation.

Children: Unmarried children under 21 can apply for parole but are not eligible for work authorisation.

Eligibility for non-immigrants status

If currently in nonimmigrant status (like B-1 or F-1), you can apply for IER parole. However, approval may require departure from the US for re-entry under parole conditions. Overstaying nonimmigrant status may lead to immigration consequences, including removal or inadmissibility. Overstaying non-immigrant status can lead to immigration issues.

The IER was established in January 2017 to help foreign entrepreneurs grow their businesses in the US. The Trump administration tried to suspend it in 2018, but a court ruling required DHS to accept applications. The Biden administration has supported the IER, keeping it as a way for international entrepreneurs to contribute to the US economy.

The programme hasn't been very successful yet. Since FY 2021, USCIS received 94 applications, with 26 approved, 28 rejected, and 40 pending or withdrawn. The recent changes aim to make the programme more attractive.