Funding requirements increased under the US start-up visa program

For want of a better term, the International Entrepreneur Rule (IER) is often referred to as the ‘start-up’ visa. IER enables ‘qualified’ international entrepreneurs (based on prescribed criteria including funds raised, to obtain immigration ‘parole’ – that is to temporarily enter and stay in the US and nurture their startup, despite not having a work visa or a green card. Commonly, IER is known as the startup visa, but it is actually a permit for eligible foreign entrepreneurs to stay in the US for two and a half years with the possibility of another extension of a similar tenure.
Recently, US Citizenship and Immigration Services (USCIS) has updated the threshold amounts for the IER program and updated the supporting evidence required. Starting October 1, 2024, there are new changes to the investment and revenue requirements.
The program has had a contentious history. Originally created at the end of the Obama Administration, IER was targeted for removal by the Trump Administration before it was launched. Due to a successful lawsuit filed by the National Venture Capital Association, it remained in force but was not seen as a viable option as the Trump administration repeatedly tried to end the program.
Finally in May 2021, under the Biden administration the US department of homeland security (DHS) announced that it is withdrawing a ‘proposed’ rule introduced by the Trump administration that would have rescinded the IER program. Given this past, till date only 94 IEP applications have been filed, with just 26 approvals. The approval can take anything between a few months to a few years.
What happens next? It remains to be seen. Meanwhile, TOI spoke with Fiona McEntee, immigration attorney, to understand the IER program and the changes.

IER is a fantastic initiative that allows certain foreign entrepreneurs to live and work in the US temporarily. While it’s not technically a visa, it provides a pathway for founders to enter the US, 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 US at the cutting edge of technological advancement. Immigrant entrepreneurs are a vital part of this, bringing fresh ideas and a relentless drive to succeed.

Immigrant entrepreneurs may be eligible for the IEP if they:

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.

A US 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%.

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).