International Entrepreneur Parole Rule - A Great Disappointment 2024

The U.S. International Entrepreneur Parole Rule has been a huge disppointment, and has not fulfilled its purpose to encourage innovation, job creation and R&D. The International Entrepreneur?Parole Rule (IER) had a great deal of promise as an avenue for immigrant entrepreneurs and owners of start-ups to be able to stay in the US to develop their business, but has turned out to be a tremendous disappointment. The goal had been to encourage start-ups with high growth potential, which would perform research and development, create jobs for U.S. workers and help grow the U.S. economy.?

Unfortunately, there have been barely any approvals at all, applications pend for years and then are issued RFEs (requests for additional evidence).? Moreover, the IER parole applications are being adjudicated by the same USCIS officers who adjudicate EB-5 immigrant investor cases, and they have wrongfully imported EB-5 requirements into the IER parole program. Rather than helping immigrant entrepreneurs, it has turned into a quagmire that has not had any positive results. ??

Even the IER rule as written already had very stringent difficult requirements to meet. It was intended for foreign national founders and at least 10 percent owners of start-ups who have an active role in managing and running the? business. It was not meant for passive investors. Parole is temporary, and does not in itself lead to the green card, so one would have to qualify for permanent residency on some other basis. It was supposed to benefit foreign nationals who have a start-up in the U.S. which was created within the past five years.

Until the great disillusionment, it initially seemed promising as an option for those foreign entrepreneurs who do not qualify for the E-2 (treaty investor), either because they are from a country that does not have a treaty with the US, or their percent of investment and ownership is below that required for an E-2, or if the majority of the business is owned by U.S. citizens or entities or permanent residents. These issues which would disqualify one from obtaining an E-2 (treaty investor) visa would not disqualify one from International Entrepreneur Parole.

Similarly, it could have been an option for those who cannot possibly come up with the funds required for EB-5.? If a foreign entrepreneur did not have those kinds of funds, but had great ideas for a business, hard work and drive and was able to come up with some government grants or venture capital or angel investment, they might have been able to qualify for International Entrepreneur Parole. The dollar amounts required for Entrepreneur Parole are significantly less than for EB-5.

Additionally, IER seemed to be an option for those entrepreneurs who are out-of-status, or have violated their stay in the US, and who are not eligible for nonimmigrant status.

All these hopes were dashed with the actual poor administration of the program by USCIS. It remains to be seen if the President's October 2023 Executive Order on the "Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence" will lead to any improvements in USCIS's administration of the IER parole program.

In the meantime, if you are a foreign entrepreneur, it may be best to try to qualify for permanent residency as either EB-1A alien of extraordinary ability or EB-2 National Interest Waiver (NIW) as an entrepreneur. Or for temporary NIV status, if you are from a treaty country, the E-2 treaty investor for temporary status or the O-1A temporary status for aliens of extraordinary ability.

This article is for informational purposes only and is not meant as legal advice. Copyright 2024 ? Heidi J Meyers, all rights reserved.

?

?