Written by: McEntee Law Group, Fiona McEntee, Sequoia Gallaway
Navigating the New Thresholds for Immigrant Startup Founders
Our regular followers know just how passionate we are—and how hard we’ve worked—for the International Entrepreneur Parole (IEP) program.
IEP is a fantastic initiative that allows certain foreign entrepreneurs to live and work in the U.S. temporarily. We’ve been advocating for this program for years because it’s a great option for startup founders. While it’s not technically a visa, it provides a pathway for founders to enter the U.S., build their businesses, create jobs, and boost the economy.
Innovation and entrepreneurship are the backbone of the American economy. They fuel job creation, spark new industries, and keep the U.S. at the cutting edge of technological advancement. Immigrant entrepreneurs are a vital part of this, bringing fresh ideas and a relentless drive to succeed.
To date, only 94 IEP applications have been filed, with just 26 approvals. We’re proud to share that one of those approvals came from our firm, and we believe it set a record—approved in just a few months, while other cases have taken years!
Our IEP client is the founder of an AI startup, exemplifying the entrepreneurial spirit the U.S. aims to attract. This success story is a testament to our dedication to helping founders achieve their American dreams and to their trust in us to navigate these uncharted waters.
If you’re considering visas to the U.S., IEP should become part of the analysis to explore if it’s right for you.
The USCIS recently updated the threshold amounts for the IEP program, and we want to keep you in the loop. The investment and revenue requirements will change Starting October 1, 2024.
Who can apply for International Entrepreneur Parole?
Immigrant entrepreneurs may be eligible for the IEP if they:
- Have major ownership (at least 10% initially) in a U.S. startup created within the last 5 years.
- Play a central and active role in the startup.
- Can show that the startup will have a positive public benefit on the U.S. by having:
- Received a significant investment from qualified U.S. investors (typically venture capitalists, angel investors, or startup accelerators).
- Received significant awards or grants from federal, state, or local government entities.
- Partially meeting one or both of the above with added evidence showing potential for rapid growth or job creation.
What are the new threshold amounts for investment/grants?
- The qualified investment amount has increased from $264,147 to $311,071.
- The awards or grants amount has increased from $105,659 to $124,429.
Remember that it is still possible to apply if you have received less than the above, but we would want to bolster the case with additional evidence of the startup’s potential for growth and job creation.
What are the new criteria for qualified investors?
A U.S. investor is considered “qualified” if they have made investments of at least $746,571 (previously $633,952) in other startups. Additionally, at least 2 of those startups must have created at least 5 qualified jobs OR generated $622,142 (previously $528,293) in revenue with average annual revenue growth of at least 20%.
Why did the amounts change?
By regulation, the investment and revenue amounts must be automatically adjusted every 3 years by the Consumer Price Index for All Urban Consumers (CPI-U).
Who should consider IEP?
If you’re a foreign startup founder raising funds or receiving government grants in the U.S., IEP could be a valuable option. It may not suit everyone, but it’s worth exploring to see if it aligns with your needs.
Where can I learn more?
You can read about our IEP approval here, and you can watch our Managing Partner, Fiona McEntee, discuss the program at length on the Joorney Podcast here.
If you’d like to see if this option could work for you, you can book a consultation with Fiona here.
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