The Founder Checklist of Entrepreneur Immigration Parole Requirements
Let’s breakdown the exact requirements that need to be checked off as a Founder applying for Founder immigration benefits to be paroled into the U.S. As a recap, the idea behind this Entrepreneur Parole rule is to allow founders of start-up entities to enter the U.S. to play an active role in the development of a startup that has the significant potential for rapid growth and job creation. It is required that we convince the USCIS that allowing you into the U.S. under this parole program will lead to a ‘significant public benefit’. Obtaining an approval allows a founder to enter the U.S. for 2.5 years initially without a non-immigrant visa such as an H-1B, O-1, or E-2, which can then be extended for another 2.5 year period for a maximum allowable stay of 5 years. In this article we consider the clear thresholds and parole requirements provided by the International Entrepreneur Rule itself.
ImmiPartner Guide to Founder Parole
Breakdown of the thresholds that the U.S. Immigration Services expect to see in your i-941 parole application
Entrepreneur Parole Requirements: The Initial 30 Month Approval
To obtain an approval of the necessary I-941 parole application we have to show that:
You are a qualified entrepreneur;
Your startup entity is a qualified start-up; and
Your startup is likely to provide a significant public benefit to the U.S.
Let’s take a look at each requirement in more detail:
(1) Are you a ‘Qualified Entrepreneur’ under the Founder Parole Rule?
To be considered an ‘Entrepreneur’ the International Entrepreneur Rule requires us to show:
(a) You possess a substantial ownership interest in a start-up entity; and
Substantial Ownership defined as:
Initial Parole Application = At least a 10% ownership at time of initial parole adjudication, which can then start to decrease thereafter but must always stay at or above 5%.
Note: At all times during re-parole the founder must own some stake
(b) You have a central and active role in the operations of your startup entity. This is satisfied by showing:
(i) You are well-positioned, due to your knowledge, skills, or experience
So here we need to gather background to prove up the founder’s expertise
(ii) To substantially assist the startup in reaching its growth potential and overall success
(2) Is your business a ‘Qualified Startup’ for Entrepreneur Parole?
The International Entrepreneur Parole Rule requires us to show there is a qualified startup which requires proof that the business:
(a) Is a U.S. business entity that was recently formed;
Must show the business was created within the 5 year period immediately preceding the initial I-941 parole request (8 CFR 212.19(a)(2))
(b) Has lawfully done business during any period of operation since its date of formation; and
not an investment vehicle primarily engaged in the offer, purchase, sale or trading of securities, futures contracts, derivatives or similar instruments (8 CFR 212.19(a)(9))
(c) Has substantial potential for rapid growth and job creation.
(3) Is your Startup able to Provide a Significant Public Benefit under the Entrepreneur Parole Rule?
The third main requirement that you must convince the USCIS of revolves around outside due diligence that has been done by qualified individuals or organizations to establish the likelihood of your startup delivering on its potential to grow and provide public benefit.
The USCIS will look to the expertise of ‘Qualified Investors’ and ‘Government Agencies’ who have decided to invest or issue awards and grants to your startup as the strongest evidence of this potential. Although an alternate route exists, ideally you can show that your startup falls into one of these two buckets:
(a) Qualified Investments of $250k: A showing that over the last 18 months prior to filing the I-941 application for founder parole, the startup has received a at least $250,000 from one or more qualified investors; or
(b) Qualified Awards or Grants of $100k: A showing that over the last 18 months prior to filing the I-941 application for founder parole, the startup has received an amount of at least $100,000 through one or more qualified government awards or grants.
Alternate Route: Note that there is also an alternative route provided, which provides that if the startup can partially meet the $250,000 in qualified investment or $100,000 in qualified government grant or awards, the applicant can provide other reliable and compelling evidence to evidence the substantial potential to meet the rapid growth and job creation being sought by this rule.
International Entrepreneur Parole Application Process and Timing
All of this must be proven in an I-941 application filed with the USCIS. Premium processing is not currently available so we will see what processing times look like but it will likely be roughly 3-5 months if we had to guess.
Once approved the founder has to obtain a travel ‘foil’ in their passport, from a U.S. Consulate in order to present themselves to be paroled into the U.S. at a port of entry to begin the initial 30 month (2.5 year) parole period.
Founder Parole Benefits for Spouse and Children
Your spouse and unmarried children under the age of 18 can also be paroled into the U.S. Your spouse is eligible to apply for an employment authorization document through an I-765 filing once paroled into the U.S. The Founder is automatically allowed to work upon entry into the U.S.
Entrepreneur Re-Parole Requirements: The Second 30 Month Approval
A paroled founder is eligible to apply for a second 2.5 year period of time under this program if requesting an extension before the expiration of the initial parole period. To be eligible you will have to show that if you are granted the second parole period that you will continue to provide a significant public benefit to the United States through the same startup that was the basis of the initial filing. The requirements include showing:
You continue to be a qualified entrepreneur;
Your startup entity continues to be a qualified start-up; and
Your startup is likely to continue to provide a significant public benefit to the U.S.
Looking at each requirement in turn, we have to prove, the following:
(1) Are you a ‘Qualified Entrepreneur’ under the Founder Re-Parole Rules?
To be considered an Entrepreneur we have to show substantial ownership and a central and active role. The rules ask us to prove the following on these criteria:
(a) You possess a substantial ownership interest in a start-up entity; AND
Substantial Ownership defined as:
Re-Parole Application = At least 5% equity stake at the time of adjudication of a subsequent period of re-parole but can then be reduced thereafter.
Note: At all times during re-parole the founder must own some stake
(b) You continue to have a central and active role in the operations of that entity. To do this we have to show:
(i)You are well-positioned, due to your knowledge, skills, or experience;
So here we need to gather updated evidence of any successes and show you are still needed and integral to the startup’s growth
(ii) To substantially assist the startup in reaching its growth potential and overall success
(2) Is your business still a ‘Qualified Startup’ under the Founder Re-Parole Rules?
Once again we have to show that your startup entity is still qualified and doing business and continues to exhibit the substantial potential for rapid growth and job creation.
(3) Has your Startup proven itself capable of Continued Significant Public Benefit under the Entrepreneur Re-Parole Rules?
To evidence this requirement for re-parole you have three options to choose from in addition to an alternative option if you cannot hit any of the thresholds laid out below:
Startup Raised an Additional Qualified Investment of $500k.
This time the investment amount is a $500,000 threshold whether the funding is coming from qualifying investments, qualified government grants or awards, or a combination of such funding, and was obtained during the initial parole period.
Startup Created at least 5 ‘qualified jobs’ during initial parole period; OR
A qualified job is:
U.S. based role;
Full time (35 hours per week) role;
Contractors do not count
That has been filled for at least 1 year by qualifying employees;
Qualifying employees are not entrepreneurs of the startup and are not related to the founder as a parent, spouse, brother, sister, son, or daughter of such an entrepreneur.
Startup Generated at least $500k in annual revenue in the United States
Note that this revenue must be shown to have average 20% growth annually during the initial parole.
Note: Here again the rules do provide an alternative option if you are unable to meet one of the three thresholds provided above. As with the initial parole application this re-parole filing can include evidence of partial satisfaction of one of the above thresholds along with additional reliable and compelling evidence that your startup will meet the rapid growth and job creation being sought by this rule.
Feel free to take a look at our FAQ section here for the Founder Immigration Parole rule.
