The International Entrepreneur Rule (IER) was scheduled to take effect on July 17, 2017. As one of our earlier blogs discussed, the rule was meant to attract entrepreneurs and give them an opportunity to start and grow start-up companies in the US. Unfortunately, the Department of Homeland Security (DHS) has delayed the effective start date of the International Entrepreneur Rule. Currently, the IER has been delayed until March 14, 2018. During this time DHS plans to take steps to overturn the IER.

The IER was meant to fill a hole in the immigration system – absence of opportunities for international entrepreneurs who are interested in creating businesses in the US. Currently, there are about two to three options available to entrepreneurs such as EB-1, EB-5, and E-2. Unfortunately, the legal criteria of these employment-based visas disqualifies many entrepreneurs. For example, to qualify for an EB-1, the applicant would need to prove extraordinary achievements in the field of endeavor. E-2 has a string of requirements, one of which is that a company needs to be majority-owned by the citizen(s) of the Treaty Country.

Quick Summary of International Entrepreneur Rule Requirements:

The International Entrepreneur Rule, with its possibly more lenient requirements, would have provided temporary permission to create and grow companies to individuals who could demonstrate that (1) their business would bring a “significant public benefit to the US” and (2) it had “substantial potential for rapid growth and job creation.”

Further, the entrepreneurs would have to show that they own at least ten percent of their start-up and that they play a significant role in running and growing the business. Generally, the start-up would need to have capital investments of at least $250,000 from qualified US investors. However, there rule allows some flexibility to this requirement.

The downside of the IER is that it does not lead to a green card or an employment visa, instead the applicant receives “parole.” Parole means that an individual is inspected by the immigration officer and is permitted to be physically present in the US. As a result, the applicant has less legal rights. The parole would authorize the applicant to work only for that specific start-up for up to 30 months. The entrepreneur can request extension for an additional 30 months.

While the International Entrepreneur Rule has been delayed until March 14, 2018, the DHS plans to take steps to overturn it .