USCIS Releases Updated Guidance on Evidence for International Entrepreneur Rule Applicants

On December 12, 2024 the USCIS released new policy guidance to help people applying for International Entrepreneur Parole. This parole allows foreign entrepreneurs to stay in the U.S. temporarily if their startups are expected to grow quickly and create jobs. The addition of these new guidelines is to explain what types of evidence entrepreneurs should provide when applying. These changes are effective immediately for all new applications and any pending cases.

What is a Start-Up Entity?

The USCIS defines a start-up entity as a U.S. business that was newly established within 5 years prior to the filing date of the entrepreneur’s application and one that has operated legally since its formation and shows significant potential for rapid growth and job creation.

What is International Entrepreneur Parole?

The International Entrepreneur Parole lets the U.S. government grant parole to foreign entrepreneurs on a case-by-case basis. If an applicant is approved, they can stay in the U.S to grow their businesses. This also allows their spouses to apply for work permits. Entrepreneurs are allowed to work for their startups while they are here, but they must show that their business has the potential to benefit the U.S economy by creating jobs.

What’s New in the Policy Update?

1. Substantial Ownership Interest

   The entrepreneur applying for parole must have a significant ownership in the start-up. USCIS considers an ownership of at least 10% when the parole is first granted, and 5% for re-parole. To prover ownership, the entrepreneur can provide evidence such as:

   • Agreements for buying or granting equity in the businesses
   • Bank records or wire transfers
   • Records of equity ownership
   • Company documents (like articles of incorporation or operating agreements)
      
2. Evidence of the Entrepreneur’s Role and Skills

   The new guidelines explain how applicants can prove they are actively involved in running the startup and have the skills necessary to help their business grow. The USCIS wants to ensure that the applicant is not just an investor but actively contributing to the business’s success. Here are some ways applicants can prove their role and skills:

   • Detailed business plan or pitch that outlines the entrepreneur’s role
   • A job description or resume of the applicant
   • Educational degrees
   • Documentation showing the applicant’s achievements that may have received recognition in the field
   • Proofs of relevant experience
      
3. Evidence of Financial Support

   USCIS now provides more examples of the types of evidence applicants can use to show their startup has financial backing, including investments, government grants, and other forms of support. Additionally, the applicant must submit evidence confirming that the start-up entity received the investment. Here are some ways applicants can prove their financial support:

   • Signed investment agreements
   • Bank statements showing the transfer of funds from investors to the business
   • Proof of equity stakes like stock-certificates or shareholder agreements
   • Any loans the startup may have received or proofs of receiving a government grant
   • Bank records and/or any audited financial statements

   
   If the applicant can show they meet the definition of an entrepreneur, and their business qualifies as a startup, but doesn’t fully meet the requirements for certain investments or grants, they can provide other strong evidence to prove their business has the potential for fast growth and job creation. Some examples of additional supporting evidence include:

   • Number of customers or users
   • Revenue the business has generated
   • Positive effects on the local area
   • The social impact of the business
   • The national reach of the business
      
4. Proving Public Benefit

   USCIS also clarified the types of evidence that can show how the entrepreneur’s business will benefit the public, a key requirement for receiving parole. Here are some examples that entrepreneurs can use to show their business will benefit the public:

   • Payroll records to prove creation of qualified jobs before the applicant files for parole
   • Employee contracts
   • Tax filings (showing wages paid)
   • Research and development efforts
   • Product prototypes
   • Public recognition/awards
      

   As this matter is subject to further updates, we encourage our readers to check the website regularly for updates regarding this and all matters regarding immigration law. Pasricha & Patel’s immigration department has extensive experience in handling business and personal immigration matters. Our team is happy to speak to you on your specific issues.