International Entrepreneur Rule that allows temporary stay in the US, explained

The United States’ (US) new International Entrepreneur Rule (IER) gives non-citizen entrepreneurs the approval to temporarily live/work in the US for up to 5 years if they meet certain conditions including the applicant entrepreneur owns at least 10% of the startup, the startup is setup as a US entity, is less than five years old, and has received a capital investment of at least $250,000 from qualified US investors, or at least $100,000 in grants or awards from qualifying US federal, state, or local government entities.
Under the IER, the Department of Homeland Security (DHS) may grant a period of authorised stay, on a case-by-case basis.
The period of authorised stay is technically called ‘parole’ and under this rule, entrepreneurs granted parole will be eligible to work only for their start-up business. The spouse and children of the noncitizen entrepreneur may also be eligible for parole.
• Entrepreneurs may be either living abroad or already in the United States.
• Start-up entities must have been formed in the United States within the past five years.
• Start-up entities must demonstrate at least $264,147 in qualified investments from qualifying investors, or at least $105,659 in qualified government awards or grants, or alternative evidence.
• The spouse of the entrepreneur may apply for employment authorisation after being paroled into the United States. Children are not eligible for employment authorisation.
• The entrepreneur may be granted an initial parole period of up to 2½ years. If approved for re-parole, based on additional benchmarks in funding, job creation, or revenue, the entrepreneur may receive up to another 2½ years, for a maximum of 5 years.
• Up to 3 entrepreneurs per start-up can be eligible for parole under the IER.
Threshold criteria for the entrepreneur: The U.S. Citizenship and Immigration Services (USCIS) considers ownership interest ‘substantial’ if the Form I-941 applicant have at least a 10% ownership interest in the start-up entity at the time of adjudication of the initial grant of parole, and have at least a 5% ownership interest in the start-up entity at the time of adjudication of a subsequent period of re-parole.
• The start-up entity must have received a qualified investment of at least $264,147 from one or more qualified investors within 18 months immediately preceding the filing of Form I-941.
• A qualified investment means a purchase from a start-up entity of its equity, convertible debt, or other security convertible into its equity, commonly used in financing transactions within the start-up entity’s industry.
• A bank loan or personal loan that is not convertible into equity would typically not meet the regulatory definition of ‘qualified investment’.
• Show substantial potential for rapid growth and job creation by the receipt of significant capital investment from the US investors with established records of successful investments in start-up entities.
• Also show this through significant awards or grants from certain federal, state, or local government entities that regularly provide awards or grants to start-up entities.
• Although USCIS does not require the applicant to establish that at least 50% of the capital contributed to the fund is sourced from the US citizens or lawful permanent residents, the applicant must nevertheless show that the firm is majority owned and controlled, directly and indirectly, by US citizens or lawful permanent residents.
Threshold criteria for spouse & children: While the entrepreneur submits Form I-941, the spouse and children (unmarried minors under 21 years of age) of the entrepreneur may file Form I-131, Application for Travel Document, with the required application fee ($630) & evidence establishing relationship as the spouse or child of an entrepreneur parolee or an applicant for entrepreneur parole.
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How to file the application & fee: The applicant must file Form I-941, Application for Entrepreneur Parole, with the required fee ($1,200) and supporting documents.
Processing Time: At present, Form I-941 is not eligible for premium processing. An applicant can make an ‘expedite request’ but the decision to expedite is within the sole discretion of USCIS.
What to do after the application is approved? If your Form I-941 is conditionally approved and you are outside the United States, you must visit a US embassy or consulate abroad to complete parole processing and obtain travel documentation (for example, a boarding foil) before appearing at a US port of entry for a final parole determination.
If your Form I-941 is approved and you are within the United States, you will be mailed travel documentation to the US address listed on Form I-941. You would have to depart the United States before appearing at a US port of entry using your travel documentation for a final parole determination.
If your Form I-941 is approved and you are paroled into the United States under the IER after appearing at a US port of entry, you are employment authorised for your start-up entity incident to the grant of parole, hence do not need to file a separate form for work authorisation.
Travel with IER approval: This immigration benefit is distinct from a visa as visas usually permit multiple entries to the US and also give applicants a ‘status’ that is consistent with the visa. IER approval allows the applicant to enter the US once in parole status. Once in the US, the applicant can apply for ‘advance parole’ and can then travel using the advance parole card.