Understanding the International Entrepreneur Rule (IER) and How it Compares to the O1 Visa

The International Entrepreneur Rule (IER) offers substantial opportunities for noncitizen entrepreneurs looking to start or scale their businesses in the US. Read on for a detailed breakdown of what the IER involves, its benefits, challenges, and how it compares to other visa options like the O-1.

Overview of the IER

The IER allows the Department of Homeland Security (DHS) to grant a period of authorized stay, known as "parole," to noncitizen entrepreneurs. This decision is made on a case-by-case basis, provided the entrepreneur's business venture is expected to offer significant public benefits to the United States and the individual merits a favorable exercise of discretion.

Key features and eligibility requirements of the IER

• Eligibility: Entrepreneurs may be living abroad or already in the US. Up to three entrepreneurs per startup may be eligible for parole.
• Business requirements: The startup must have been formed in the US within the past five years and demonstrate substantial potential for rapid growth and job creation.
• Financial criteria: Startups need to show at least $264,147 in qualified investments from qualifying investors or at least $105,659 in qualified government awards or grants. Alternative evidence that shows significant potential can also be considered.
• Duration and family inclusion: Entrepreneurs can be granted an initial parole period of up to 2½ years, which can be extended for another 2½ years upon meeting additional benchmarks. The entrepreneur's spouse and children may also be eligible for parole, with the spouse being able to apply for employment authorization.

Challenges with the IER

Despite its advantages, the IER presents several critical challenges:

• Processing delays: Applications can take a significant amount of time to process, which may not be feasible for rapidly evolving startups.
• Complex evidence requirements: The documentation required can be extensive and daunting, particularly for startups needing to secure sensitive information from investors.
• Limited stay: After the maximum five-year period, entrepreneurs and their families must leave the US unless they transition to another visa type or adjust their status.

Alternative visa options: The O-1 visa

For those seeking more certainty and quicker processing times, the O-1 visa remains a strong alternative:

• Fast processing: The O-1 visa offers premium processing, ensuring a response from USCIS within 15 business days from the date of receipt of Form I-907.
• Criteria: The visa criteria are straightforward, focusing on the entrepreneur’s achievements such as funding, awards, and significant press coverage.
• Renewal and transition: Unlike the IER, the O-1 visa allows for indefinite renewals and the possibility of transitioning to a green card.

Classifications within the O-1 Visa

• O-1A: This classification is for individuals with extraordinary ability in the sciences, education, business, or athletics. It excludes those in the arts, motion pictures, or television industry. The criteria focus on demonstrating a high level of expertise and being recognized as top in the field.
• O-1B: This classification applies to individuals with extraordinary abilities in the arts or who have achieved extraordinary success in the motion picture or television industry, evidenced by a degree of skill and recognition significantly above that ordinarily encountered.
• O-2: This visa supports individuals who will accompany an O-1 artist or athlete to support in specific events or performances. The O-2 visa holder must be an integral part of the actual performances or events and possess critical skills and experience with the O-1 visa holder that are not general in nature and cannot be performed by other individuals.
• O-3: This classification is for the spouses or children of O-1 and O-2 visa holders, allowing them to accompany the primary visa holder during their stay in the US. While, O-3 visa holders are allowed to study in the US they are not permitted to work.

Take our short assessment now to see if you qualify.

For most international entrepreneurs who qualify for the IER, the O-1 visa offers an even better and a more robust option with its flexibility, potential for indefinite renewal, and pathway to permanent residency. At Deel, we understand the complexities of navigating US immigration laws and are equipped to help you determine the right visa fit for your unique talents and business goals.

Discover our immigration services or book a call to get your questions answered.