International Entrepreneur Parole Program (IEPP) for the USA
The “International Entrepreneur Parole Program” is not a separate visa category. If the application is approved, the entrepreneur receives an entry document that is valid for one entry; if they wish to enter and leave the country afterwards, they must obtain another document in the USA. The IEPP enables the Department of Homeland Security (DHS) to admit international entrepreneurs to the USA if they can prove that their stay in the country could bring significant public benefit. On this page, we explain in detail how the IEPP is an alternative to the E-2 investor visa and which requirements apply.
IEPP as an alternative to the E-2 investor visa for the USA?
The IEPP is often seen as an alternative to the E-2 investor visa. However, entrepreneurs should be aware that the requirements differ and are higher or more complex for the IEPP than for the E-2 visa. The application procedure for the IEPP is also generally more extensive than for the E-2 visa. For example, either U.S. authorities must have made grants to the start-up company, in which the applicant must have a stake and in which they wish to work, or American investors must have invested in this company. Further requirements are placed on the investors.
In most cases, it should therefore be easier to apply for an E-2 visa. Only if this is not possible do we recommend the IEPP as an alternative. An E-2 visa can be ruled out, for example, because the applicant is not a national of a country with which the USA has concluded a bilateral treaty on E-2 visas. For example, there is no treaty with South Africa and Israeli citizens have only been able to apply for E-2 visas since 2019. Citizens of Iran, Venezuela or Algeria, for example, cannot apply for an E-2 visa either. The E-2 visa can of course also be ruled out if the U.S. company itself does not have the required “nationality”.
What are the requirements for the IEPP?
1. Company
- The company you wish to work for is a start-up company that was founded within the last five years prior to submitting your application.
- The company has the potential to grow rapidly and create jobs. This is usually proven by the fact that the required investment (see III. below) has been made.
2. Personal requirements
- You hold at least 10 percent of the shares in the start-up company.
- You have a central and active role in the start-up company for which you are demonstrably qualified. As is so often the case, it is not just your formal position in the company that matters, but also whether you have the qualifications to make important decisions for the company.
3. Investment
Unlike the E-2 visa, the IEPP has specific requirements regarding the type and amount of investment required.
a) Amount of the investment
The subsequent investment or grant must have been made within 18 months prior to filing the application:
- The start-up company must have received an investment of at least USD 250,000 from one or more “qualified investors” or
- have received USD 100,000 in prizes or grants from one or more government authorities.
- If the above amounts are not reached, it must also be demonstrated that the start-up has the potential for rapid growth and job creation through compelling evidence.
b) Origin of the investment
The required investment must come from one (or more) qualified investor(s). This means that it must not and cannot be the applicant's own funds. Investments by relatives or by companies in which relatives or the applicant himself hold shares are also ruled out. Of course, this does not mean that the applicant or their relatives may not also invest if and insofar as a qualifying investment also exists.
- The investor may be a natural person and a U.S. citizen or green card holder
- The investor may also be a U.S. organization, provided that it is
- majority owned and managed by U.S. citizens or green card holders,
- also active in the USA.
- The investor - whether a natural person or a U.S. organization - must also have invested in at least two start-up companies:
- have made investments of at least USD 600,000 during the five years preceding the application in return for the issue of convertible debt instruments or similar, and
- at least two of these start-up companies must each have created at least five jobs (“qualified jobs”) or each have achieved an increase in revenue of at least USD 500,000 with an annual increase of at least 20 percent.
- Certain requirements are also placed on the aforementioned jobs. They must be full-time positions that have been filled by one or more employees for at least one year. The applicant himself or his relatives (spouse, children, siblings, parents) cannot be considered.
What is the duration of stay for the IEPP?
The permitted stay is initially 30 months. Before this period expires, an application can be made for a further 30 months, provided that various conditions, some of which are additional, are met. An extension beyond a total stay of five years is not possible.
What applies to family members?
The applicant may be accompanied by the spouse and minor children. The spouse receives a work permit, the children do not.
Background information on the International Entrepreneur Parole Program (IEPP)
The International Entrepreneur Parole Program was introduced in 2017 under then President Barack Obama. Former President Donald Trump wanted to abolish the program again. There were legal proceedings and withdrawal orders and the fate of the program was uncertain for a long time. On May 10, 2021, the USCIS announced that the withdrawal initiated by Donald Trump had lapsed and was finally shelved. Legal regulations on the International Entrepreneur Rule can be found in various laws, the most detailed being the provisions in 8 CFR 212.19.
Legal advice on the IEPP
We would be happy to clarify with you whether you meet the requirements for the International Entrepreneur Parole Program or what other alternatives exist in your specific case. Please contact us at any time if you would like to make an appointment for a consultation with one of our experts – either by e-mail (info@visum-usa.com) or by phone (+49 69 76 75 77 85 26).
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