Guide to the International Entrepreneur Rule [IER in 2026]

TL;DR

• The International Entrepreneur Rule (IER) allows USCIS to grant temporary authorized stay, called parole, to foreign founders of U.S. startups that demonstrate substantial potential for rapid growth and job creation. It is not a visa and it is not a path to a green card.

• Initial parole lasts up to 30 months. One re-parole period of up to 30 months is available, for a maximum of five years total. After five years, the founder must have transitioned to another immigration status or depart.

• There are three qualification pathways for initial parole: a qualified investment of at least $311,071 from qualifying U.S. investors, a U.S. government award or grant of at least $124,429, or alternative evidence demonstrating significant growth potential if the startup partially meets either threshold.

• The entrepreneur must hold at least 10% ownership of the startup and have a central, active role in its operations. Up to three entrepreneurs per startup may apply.

• The startup must be a U.S. entity formed within five years of the application date, lawfully operating, and not primarily engaged in securities trading.

• As of October 2024, investment and revenue thresholds increased under the triennial CPI adjustment. The next automatic adjustment is expected October 1, 2027.

• A new parole fee of $1,020 (FY2026, subject to annual adjustment) was added by the One Big Beautiful Bill Act, assessed upon parole grant in addition to the $1,200 Form I-941 filing fee.

• USCIS reports no current backlog for Form I-941 applications, but processing times are unpredictable and no premium processing option exists.

• Despite its strategic potential, only approximately 112 total Form I-941 applications were filed between FY2018 and FY2023. The program is significantly underutilized relative to its target population.

• IER does not lead directly to a green card. Founders who succeed during the parole period typically pursue O-1A, EB-2 NIW, or EB-1A for longer-term status. Parallel immigration planning from the beginning of the IER period is essential.

What the IER Is and What It Is Not

The International Entrepreneur Rule, published as a final rule in January 2017, gives DHS authority under INA section 212(d)(5) to parole foreign founders into the United States on a case-by-case basis when doing so would provide a significant public benefit through the startup's growth and job creation potential.

Parole is not a visa category. It is not a nonimmigrant status. It does not appear on any immigrant visa preference list. An entrepreneur granted parole under the IER has authorized stay in the United States and work authorization limited to the startup entity, but they have not been admitted in any immigration status. This distinction has important downstream consequences.

Because parole is not a nonimmigrant status, it cannot be extended by changing status to another nonimmigrant category from within the United States in the ordinary sense. Adjustment of status to a green card is generally not available from parole under the IER unless the founder qualifies through a separate basis. The IER provides time, not a pathway. What the founder does with that time, specifically whether they build the evidence and qualifications to pursue O-1A, EB-2 NIW, or EB-1A, determines whether they can remain in the United States beyond the five-year maximum.

The IER has also faced regulatory and political challenges since its creation. It was delayed under one administration and reinstated under another. The current administration's approach to the program involves ongoing discretionary application of parole authority. Founders relying on IER should build parallel immigration strategies rather than treating it as a stable long-term foundation.

Who the IER Is Designed For

The IER was created to address a specific gap: highly capable foreign founders building genuine U.S. startups who do not fit neatly into existing visa categories. The H-1B visa requires employer sponsorship and lottery selection. The O-1A requires demonstrated extraordinary ability, which early-stage founders may not yet have documented. 

The EB-2 NIW requires an advanced degree or exceptional ability and takes years to process. The E-2 requires treaty country eligibility that excludes nationals of India, China, Brazil, and Russia, among others.

The IER is most appropriate for:

• Founders who have secured meaningful venture investment from U.S. investors or government grants, who are building a U.S.-headquartered startup, and who need a legal framework to be physically present in the United States to run it.

• Founders from non-treaty countries who cannot access the E-2 investor visa but who have secured qualifying U.S. investment.

• Founders who are already in the United States on another visa (such as F-1 OPT or H-1B) and want a framework specifically designed for their role as a startup founder, though they must still meet all requirements and parole is only obtained upon a new entry from outside the United States.

The IER is not appropriate for founders without U.S. investor backing or qualifying government funding, founders of lifestyle businesses without substantial growth potential, or founders who need a certain long-term immigration outcome rather than a discretionary temporary authorization.

Initial Parole: The Three Qualification Pathways

USCIS evaluates IER applications through one of three pathways. The first two establish a presumption of substantial potential for rapid growth and job creation. The third allows applicants to make the case through other evidence.

Pathway 1: Qualified Investment

The startup must have received at least $311,071 in qualified investment from one or more qualifying investors within the 18 months immediately preceding the Form I-941 application.

The investment must come from qualified investors. A qualified investor is defined as a U.S. citizen or lawful permanent resident, or a U.S.-based organization majority owned and controlled, directly or indirectly, by U.S. citizens or permanent residents, that has a track record of substantial investment in startup entities. Specifically, the investor must have invested a total of at least $746,571 in startup entities over the preceding five years, and at least two of those entities must have each subsequently created at least five jobs or generated at least $622,142 in revenue with 20% or more annualized revenue growth.

In practice, qualifying investors are typically established venture capital firms, angel investor networks with documented investment histories, and some corporate venture arms. A newly formed entity or an individual investor without a documented track record of successful startup investments may not satisfy the qualified investor standard regardless of investment amount.

Personal investments by the entrepreneur in their own startup do not count toward the minimum investment threshold. The investment must come from a third-party qualifying investor.

Pathway 2: Qualified Government Award or Grant

The startup must have received at least $124,429 in federal, state, or local government awards or grants within the 18 months preceding the application. The award must be granted to the startup entity, not to the entrepreneur personally, and must be from a U.S. government source. Grants from foreign governments do not qualify.

Qualifying government awards include SBIR (Small Business Innovation Research) grants, STTR (Small Business Technology Transfer) grants, NIH grants to the startup entity, NSF grants, grants from state economic development agencies, and other qualifying public funding. The government award pathway is particularly relevant for researchers and scientists who have spun out startups from academic or government research.

Pathway 3: Alternative Evidence

If the startup partially meets either of the above thresholds but does not fully satisfy either, the applicant may still qualify by submitting additional reliable and compelling evidence that the startup has substantial potential for rapid growth and job creation.

Alternative evidence may include: patents or licenses with documented commercial potential, contracts or letters of intent from established companies, accelerator or incubator participation (particularly well-known programs such as Y Combinator, Techstars, or similar), revenue traction and growth metrics, signed term sheets from qualified investors that did not close in time to satisfy the 18-month window, and other objective indicators of momentum.

The alternative evidence pathway is inherently more subjective and discretionary. USCIS officers evaluating this pathway are not startup investors, and presentations that rely on startup-industry assumptions about valuation multiples or market potential without concrete supporting data are less persuasive than applications anchored in documented milestones.

Startup Entity Requirements

The startup must satisfy four conditions:

• Formed in the United States: the entity must be a U.S. business entity, lawfully incorporated or organized under state law, with a physical presence in the United States.

• Formed within five years: the startup must have been formed within the five years immediately preceding the initial I-941 application date. A company founded six years ago does not qualify, regardless of its current stage.

• Lawfully conducting business: the entity must be actively and lawfully operating. Holding companies, shell entities, and entities primarily engaged in securities trading or investment do not qualify.

• Substantial potential for rapid growth and job creation: this is the core substantive test. The qualifying investment, government award, or alternative evidence pathway establishes this. The startup's business description, market opportunity, technology, team, and traction all contribute to how USCIS evaluates this factor in the alternative evidence context.

Entrepreneur Requirements

Ownership

The entrepreneur must hold a substantial ownership interest in the startup entity. USCIS defines substantial as at least 10% at the time of the initial parole application's adjudication.

This threshold has important practical consequences for founders who have gone through significant dilution in early funding rounds. A founder who began with 40% and is down to 8% at the time of application does not meet the initial parole threshold. Series A and Series B founders whose equity has been diluted below 10% commonly encounter this barrier.

For re-parole (the second 30-month period), the ownership threshold decreases to more than 5%. A founder who held more than 10% at initial parole but has since been diluted to 6% still qualifies for re-parole consideration.

Role

The entrepreneur must have a central and active role in the startup's operations. This means demonstrating that the founder is actively managing, directing, or contributing specialized knowledge to the company's development, not merely holding an equity stake as a passive investor.

Evidence of central role includes: an officer or director title with documented responsibilities, board resolutions identifying the entrepreneur's role, employment agreements or consulting agreements with the startup, documented operational decision-making authority, and letters from co-founders, board members, or investors describing the entrepreneur's specific contributions.

USCIS may request evidence of actual day-to-day involvement. A founder whose role is primarily ceremonial or whose operational responsibilities are ambiguous will have a weaker application.

Multiple Entrepreneurs

Up to three entrepreneurs from the same startup may each apply for IER parole. Each must independently satisfy the ownership and central role requirements. This allows co-founding teams to each obtain parole authorization. The investment or grant threshold applies to the startup as a whole, not to each entrepreneur individually.

The Application Process

Form I-941

The application for entrepreneur parole is Form I-941, Application for Entrepreneur Parole. As of 2026, Form I-941 must be filed on paper with USCIS's Dallas Lockbox facility. The form requires:

• Detailed information about the entrepreneur, including immigration history, education, and professional background.

• Detailed information about the startup entity, including formation documents, articles of incorporation, equity capitalization tables, financial statements, and a description of business operations.

• Investment documentation: signed investment agreements, wire transfer records, investor qualification evidence (to establish that investors meet the qualified investor standard), and any term sheets or commitment letters.

• Government award documentation: award letters, grant agreements, and evidence that the award was received by the startup entity.

Alternative evidence documentation if relying on the third pathway.

• Evidence of the entrepreneur's ownership stake: capitalization table, equity certificates or ledger, stock option agreements.

• Evidence of the entrepreneur's central role: organizational chart, title documentation, board resolution, employment agreement, or equivalent.

USCIS may use open-source information to verify the evidence submitted, including review of the startup's website, press coverage, and public filings.

Filing Fees

The Form I-941 filing fee is $1,200. A biometrics appointment is required for all applicants and is scheduled by USCIS after filing.

The One Big Beautiful Bill Act established a new parole fee of $1,000, with annual inflation adjustments. For FY2026, this fee is approximately $1,020. It is assessed at the time parole is granted, not at filing, and cannot be waived. This fee applies to the entrepreneur and separately to each dependent granted parole.

For family members: Form I-131 for each dependent seeking parole costs $630 per person. Form I-765 for the spouse's employment authorization is $520 by paper or $470 online.

Conditional Approval and Entry

A USCIS approval of the Form I-941 grants conditional approval, not parole itself. The final parole determination is made by U.S. Customs and Border Protection at the port of entry when the entrepreneur arrives in the United States.

• Applicants outside the United States receive conditional approval and must then attend a biometrics appointment at a U.S. embassy or consulate before traveling. Upon arrival at a U.S. port of entry, CBP makes the final determination and, if approved, grants parole for the authorized period.

• Applicants already inside the United States on another status may file Form I-941, but parole is only effectuated upon a new entry from outside the United States. An applicant in valid H-1B or F-1 visa status who receives conditional IER approval must depart and re-enter to receive the parole grant.

USCIS reports no current backlog for Form I-941 applications. No premium processing is available. Processing times are unpredictable and applicants should plan for several months from filing to final parole grant.

The Initial 30-Month Parole Period

During the initial 30-month parole period, the entrepreneur is authorized to work only for the startup entity named in the parole grant. Work for any other employer, including consulting, part-time employment, or advisory roles with other companies, is not authorized.

The startup may evolve significantly during this period. USCIS anticipates that startups will pivot, adjust business models, and change their operational focus. An entrepreneur whose startup pivots does not automatically lose parole eligibility, but significant changes to the fundamental nature of the business should be evaluated with immigration counsel for their potential effect on re-parole eligibility.

Travel outside the United States is permitted. The IER grants a multi-entry parole document valid for the duration of the authorized parole period, allowing the entrepreneur to re-enter the United States during that period without filing separately for each trip. Applicants who plan to travel during the parole period should retain the parole documentation and travel with evidence of their continued role in the startup.

Re-Parole: What You Must Demonstrate After 30 Months

To obtain a second 30-month parole period, the entrepreneur must demonstrate that the startup has achieved meaningful progress during the initial period. USCIS evaluates re-parole applications against three primary benchmarks:

• Additional funding: the startup has received more than $622,142 in combined qualified investments, government grants, or awards during the initial parole period.

• Job creation: the startup has created at least five qualified full-time jobs for U.S. workers during the initial parole period.

• Revenue growth: the startup has generated at least $622,142 in annual U.S. revenue and demonstrated at least 20% annualized revenue growth during the initial parole period.

Partially meeting one or more of these benchmarks, combined with other compelling evidence of growth and national benefit, may also support a favorable re-parole determination. The alternative evidence standard applies at re-parole as well.

The re-parole application should be filed before the current parole period expires. USCIS evaluates re-parole on a case-by-case discretionary basis, applying the same significant public benefit and favorable discretion standards as the initial application.

Spouse and Dependents

The entrepreneur's spouse and unmarried children under 21 may also be granted parole under the IER. Each must file separately (Form I-131 for initial entry or Form I-131A if inside the United States).

The spouse of a paroled IER entrepreneur may apply for an Employment Authorization Document (Form I-765) once parole is granted. If approved, the spouse may work for any employer without restriction, not just the startup.

Children granted parole are not eligible for employment authorization.

What IER Does Not Provide

Several important points deserve explicit statement because they are commonly misunderstood.

• IER does not provide a path to a green card. Parole under the IER does not lead directly to any immigrant visa classification. An entrepreneur who builds a successful company during the five-year IER period must still qualify for and transition to a green card category through their own independent merits. The IER is not connected to any employment-based preference category.

• IER does not accumulate toward any immigration status. Five years of IER parole does not count toward naturalization eligibility, toward any visa preference, or toward any other immigration benefit that accrues based on lawful presence in the United States.

• IER work authorization is restricted to the startup. The entrepreneur may not take employment with another company, accept consulting fees from outside entities, or hold a board advisory role that includes compensation at another company during the parole period.

• IER is revocable. USCIS and CBP retain authority to terminate parole if the entrepreneur or startup no longer meets the program's criteria, if the startup ceases operations, or if the entrepreneur is no longer playing a central role. There is no formal hearing process analogous to removal proceedings before parole is terminated.

Immigration Planning After IER: What to Build During the Five Years

Because IER provides time without a built-in onward path, the five-year window must be used to build qualifications for a longer-term immigration status. The most relevant options for successful IER entrepreneurs are:

• O-1A (nonimmigrant): for individuals with extraordinary ability in sciences, education, business, or athletics. A founder who during the IER period raises significant capital, generates press coverage, speaks at major industry events, receives awards, or demonstrates commercial success at scale may build an O-1A case. O-1A is not subject to a cap or lottery and provides three-year periods renewable indefinitely. It allows the entrepreneur to remain in the United States while pursuing the immigrant process.

• EB-2 NIW (immigrant): for professionals with advanced degrees or exceptional ability whose work serves the national interest. A startup that creates jobs, introduces innovative technology, or advances a field of national importance may support a strong NIW petition for the founder. EB-2 NIW allows self-petition with no employer sponsor. For Indian nationals, the EB-2 backlog makes this a long-term play, but filing the I-140 early establishes a priority date.

• EB-1A (immigrant): for individuals with extraordinary ability at the top of their field. Founders who have achieved sustained national or international acclaim through their startup's success, including significant press coverage, industry awards, high compensation, and critical role in a distinguished enterprise, may qualify. EB-1A is self-petition, no employer required, and for most countries has no meaningful backlog.

The practical recommendation is to begin documenting evidence for O-1A, EB-1A, and/or EB-2 NIW from the first day of IER parole, not in year four when the clock is running out. Every investor letter, press article, award, advisory board appointment, and patent should be preserved and filed in an evidence archive. 

The founders who successfully transition from IER to a longer-term status do so because they treated the IER period as a build phase for their immigration case, not just for their company.

Fees Summary

Note: the parole fee applies separately to the entrepreneur and to each family member granted parole.

The Utilization Reality

Despite the IER's stated purpose of capturing immigrant entrepreneurial talent that fills gaps in existing visa categories, the program has seen remarkably low uptake. Approximately 112 total Form I-941 applications were filed between FY2018 and FY2023, averaging approximately 19 per year. 

By comparison, tens of thousands of immigrant founders operate in the United States annually, and more than half of billion-dollar U.S. startups have at least one immigrant co-founder.

The low utilization reflects several practical barriers: the discretionary and uncertain nature of parole status, the absence of a clear green card path, the investment threshold requirements that favor later-stage founders over seed-stage ones, the complexity of demonstrating qualified investor status, the political and regulatory history of the program, and the fact that many eligible founders find alternative workarounds through H-1B, O-1A, or OPT arrangements.

For the right founder at the right stage, the IER remains a meaningful option. For founders who do not yet have qualifying investment or who need long-term immigration certainty, a parallel O-1A or EB-2 NIW strategy is likely more reliable. 

The most effective approach is to evaluate both paths simultaneously with immigration counsel and use whichever provides the clearest, most stable foundation for the founder's specific circumstances.

Frequently Asked Questions

Can I apply for IER while on H-1B or OPT inside the United States?

Yes, you can file Form I-941 while inside the United States in any lawful status. However, parole is only effectuated upon entry from outside the United States. This means you must depart and re-enter to receive the parole grant, even if USCIS conditionally approves the application while you are inside the U.S. The practical implication is that H-1B holders who receive IER approval must plan a departure and re-entry, which requires careful timing given H-1B visa stamp and travel document considerations.

Does the IER require me to invest my own money in the startup?

No. The investment threshold must be met by qualifying third-party investors. Personal investments by the entrepreneur in their own startup do not count toward the minimum. The IER is designed around third-party validation of the startup's potential, not the entrepreneur's personal capital.

How many entrepreneurs from one startup can apply?

Up to three entrepreneurs per startup may each apply. Each must independently satisfy the ownership threshold (at least 10% for initial parole) and the central role requirement. The investment or grant threshold applies to the startup as a whole and does not need to be separately satisfied for each entrepreneur.

What happens if my startup fails during the IER period?

If the startup ceases operations or the entrepreneur is no longer playing a central role, USCIS may revoke parole. The entrepreneur would then need to depart the United States or transition to another authorized status. A startup pivoting or restructuring does not automatically terminate parole, but the entrepreneur should notify immigration counsel of significant operational changes that could affect re-parole eligibility.

Does IER work for founders from India, China, and other countries without E-2 treaties?

Yes. This is one of the IER's primary design features. Unlike the E-2 Treaty Investor visa, IER has no nationality restriction. Founders from India, China, Brazil, Russia, and any other country are equally eligible, provided all other requirements are met. This makes IER one of the very few startup-focused immigration options available to founders from high-demand countries who are otherwise limited to H-1B, O-1A, or EB-based pathways.

This article is intended for general informational purposes only and does not constitute legal advice. IER requirements, thresholds, fees, and program status are subject to change. Always verify current USCIS requirements at uscis.gov before filing. For guidance specific to your situation, consult a licensed immigration attorney experienced in entrepreneur immigration.