International Entrepreneur Parole Program / Startup Visa

The purpose of the IEP is to grant a period of authorized stay, on a case-by-case basis, to inventor researchers and founders of start-up enterprises who demonstrate that their start-up would provide a significant public benefit through rapid business growth but may not yet qualify for the National Interest Waivers. 

The standard for getting the IEP is lower than the standard of the National Interest Waiver.

Here we take a closer look at the regulations under 8 CFR 212.19 to clarify the criteria for the IEP program. 

Eligibility for the International Entrepreneur Parole program

What is “substantial ownership” to obtain lawful status to operate a start-up in the U.S. under the International Entrepreneur Parole program?

8 CFR 212.9 (a): 

An entrepreneur has a substantial ownership interest in a start-up entity with an active and central role in the operations of that entity. Due to their knowledge, skills, or experience, the alien is well-positioned to substantially assist the entity with the growth and success of its business.

For purposes of this section, the substantial ownership interest is 10 percent in the start-up entity at the time of adjudication of the initial grant of parole. At the time of adjudication of subsequent re-parole, at least a five percent ownership interest in the start-up entity at the time of adjudication.

During the period of initial parole, the entrepreneur may continue to reduce their ownership interest in the start-up entity, but must, at all times during the period of initial parole, maintain at least a five percent ownership interest in the entity. The entrepreneur must maintain an ownership interest in the entity but may continue to reduce it during re-parole.

What is a “start-up” under the International Entrepreneur Parole program?

A start-up entity is a recently formed U.S. business entity that has lawfully done business during any period of operation since its date of formation and has substantial potential for rapid growth and job creation. 

Under this section, a recently formed entity that is the basis for a request for parole must be created within the five years immediately preceding the filing date of the alien’s initial parole request.

For purposes of paragraphs (a)(3) and (5), it is an entity formed within the five years immediately preceding the receipt of the relevant grant(s,) award(s), or investment(s).

The potential for rapid growth and job creation is not easily defined; use evidence to show this.

One technique is to use an independent expert, someone who may know the beneficiary or company but doesn’t have a vested interest.

A business plan that complies with the Matter of Ho, financial projections and job creation projections, actual payroll records, articles, or press releases qualify as evidence for growth or potential growth. 

A statement from the beneficiary or someone in the company detailing projected growth over a specific time could also be helpful but need to be supported by evidence.

What is a “qualified government award or grant” under the International Entrepreneur Parole program?

8 CFR 212.9 (a):

Qualified government award or grant is an award or grant for economic development, research, and development, or job creation (or other similar monetary awards typically given to start-up entities) made by a federal, state, or local government entity (not including foreign government entities) that regularly provides such awards or grants to start-up entities. 

This definition excludes any contractual commitment for goods or services and precludes foreign grants and goods and services purchases. Scholarships or other awards to attend educational institutions don’t qualify under this criterion.

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What is a “qualified investment” under the International Entrepreneur Parole Program or start-up visa?

8 CFR 212.9 (a):

Qualified investment means an investment made in good faith, and that is not an attempt to circumvent any limitations imposed on investments. 

A purchase of lawfully derived capital in a start-up entity is from an entity of its equity, convertible debt, or another security convertible into its equity, typically within the same industry.

Cannot include an investment: 

• directly or indirectly, from the entrepreneur; 

• the parents, spouse, brother, sister, son, or daughter of such entrepreneur; 

• or any corporation, limited liability company, partnership, or other entity in which such entrepreneur or the parents, spouse, brother, sister, son, or daughter of such entrepreneur directly or indirectly has any ownership interest.

Notice how “qualified investment” omits using money gifted from family members or their companies. Additionally, loans may only be viable if they can convert to equity. 

Who is a qualified investor under the International Entrepreneur Parole program or start-up visa?

8 CFR 212.9 (a):

A Qualified Investor is an individual who is a U.S. citizen or lawful permanent resident of the U.S. or a U.S.-based organization operating under U.S. laws that is majority-owned and controlled, directly and indirectly, by U.S. citizens or legal permanent residents of the United States. Provided such individuals or organizations regularly make substantial investments in start-up entities that subsequently exhibit substantial revenue generation or job creation growth.

A “qualified investor” is an individual or organization legally able to participate in the offer or sale of a security or the provision of services as an investment adviser, broker, dealer, municipal securities dealer, government securities broker, government securities dealer, bank, transfer agent or credit rating agency. 

Qualified investors cannot have illegally participated in the offer or sale of securities or provision of such services and be able to participate in such associations. 

Under this section, such an individual or organization may be considered a qualified investor if, during the preceding five years:

(i) The individual or organization made investments in start-up entities in exchange for equity, convertible debt, or another security convertible into equity commonly used in financing transactions within their respective industries comprising a total within five years of no less than $600,000; and

(ii) after such investment, by those individuals or organizations, at least two entities each created at least five qualified jobs or generated at least $500,000 in revenue with revenue growth averaging at least 20 percent annually.

The challenge is obtaining this evidence from the investor to prove that they meet the criteria to help the recipient of their investment receive approval of this status.

How much funding is required to qualify for the International Entrepreneur Parole program?

Under 8 CFR 212.19(b)(2)(ii)(B)(1) of the International Entrepreneur Parole program, the applicant’s start-up has either:

(1) Received, within 18 months immediately preceding the filing of an application for initial parole, a qualified investment amount of at least $250,000 from one or more qualified investors; or

(2) Received, within 18 months immediately preceding the filing of an application for initial parole, an amount of at least $100,000 through one or more qualified government awards or grants. 

However, according to alternative criteria, a foreign-national who partially meets one or both requirements may provide other reliable and compelling evidence of the start-up entity’s substantial potential for rapid growth and job creation.

How long can a person hold the International Entrepreneur Parole Program status?

Under 8 CFR 212.19(f): a foreign-national can’t receive more than one initial grant of entrepreneur parole or more than one additional grant of entrepreneur re-parole based on the same start-up entity for a maximum parole period of five years.

Duration of IEP parole is for two and a half years or 30-months increments.

What are the criteria for extending International Entrepreneur Parole status?

8 CFR 212.19(c)(2): Criteria for consideration –

(i) In general, an alien may be considered for re-parole under this section if the alien demonstrates that a grant of parole will continue to provide a significant public benefit to the United States based on their role as an entrepreneur of a start-up entity.

(ii) Typically, an alien may meet the standard described in paragraph (c)(2)(i) of this section by providing a detailed description, along with supporting evidence that:

(A) Demonstrates the alien continues to be an entrepreneur as defined in paragraph (a)(1) of this section and that their entity continues to be a start-up entity as defined in paragraph (a)(2) of this section; and

(B) Establishing that the alien’s entity has:

(1) Received at least $500,000 in qualifying investments, government grants or awards, or a combination of such funding, during the initial parole period;

(2) Created at least five qualified jobs with the start-up entity during the initial parole period; or

(3) Reached at least $500,000 in annual revenue in the United States and averaged 20 percent in annual revenue growth during the initial parole period.

(iii) Alternatively: 

• if the alien satisfies the requirements in paragraph (c)(2)(ii)(A); and 

• partially meets one or more of the criteria in paragraph (c)(2)(ii)(B), then • they can provide other reliable and compelling evidence of the start-up entity’s substantial potential for rapid growth and job creation to meet (c)(2)(i) criteria.

Remember the rule of 5s: 5 jobs, raising $500,000 or generating $500,000 in revenue. If you can’t reach these thresholds, you must show other evidence of potential to get there.

What are the criteria and benefits spouses and children have under the International Entrepreneur Parole Program?

8 CFR 212.19(h)(1):

The entrepreneur’s spouse and children seeking parole as derivatives must individually file Form I-131, Application for Travel document. The application must also include evidence that the derivative has a qualifying relationship to the entrepreneur and otherwise merits a grant of parole in the exercise of discretion. The spouse or child will be required to appear for biometrics collection per the form instructions or upon request.

(2) The spouse and children of an entrepreneur granted parole under this section may be granted parole for no longer than the time given to such entrepreneur.

(3) After being paroled into the U.S., the spouse of the entrepreneur parolee may be eligible for employment authorization under this section. To request employment authorization, an eligible spouse paroled into the U.S. must file an Application for Employment Authorization (Form I-765).

(4) A child of the entrepreneur parolee may not be authorized for and may not accept employment based on parole under this section.

For more information on the International Entrepreneur Parole program and how you may qualify, schedule a strategy session with one of our licensed immigration attorneys.

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For more information on the International Entrepreneur Parole program and how you may qualify, schedule a strategy session with one of our licensed immigration attorneys.

The Most Common IEP Forms and Their Associated Cost

• Form I-131, Application for Travel Document: This form is required for all IEP applicants who need a travel document, such as a passport or an I-551 stamp, to travel outside of the United States while in IEP status. The cost of Form I-131 is $575. The Form I-131 will also require applicants between the ages of 14-80 to go through a biometrics service which typically cost $85. 
• Form I-134, Affidavit of Support: This form is required to show that the applicant has sufficient financial resources to support themselves and their family while in the United States. The cost of Form I-134 is $185.
• Form I-944, Declaration of Self-Sufficiency: This form is required for all IEP applicants who are not exempt from the requirement. The cost of Form I-944 is $0.
• Form IEP-1, Application for International Entrepreneur Parole: This is the main form required for an IEP application. The cost of Form IEP-1 is $340.
• Form IEP-2, Supporting Documentation: This form is required to provide supporting documentation for the IEP application. The cost of Form IEP-2 is $0.

In addition to these forms, the applicant may also be required to submit other supporting documents, such as a business plan, financial statements, or letters from investors. The specific documents required will vary depending on the applicant’s individual circumstances. The total cost of an IEP application can vary depending on the individual circumstances. However, the applicant should expect to pay at least a few hundred dollars in application fees and other costs.

IEP Visa FAQs