March 3, 2025
IER Program 2025
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On 11th May 2021, the Biden Government with its continuous immigration reforms agenda, restored the International Entrepreneur Rule (“IER”), also commonly known as the US Start up Visa. As per USCIS regulations, the investment and revenue thresholds must automatically be adjusted every 3 (three) years in line with the Consumer Price Index for All Urban Consumers (also known as CPI-U) i.e., adjust it with the inflation. The new amounts came into effect from FY 2025. Thus, on time, as of 1st October 2024, the revised investment and revenue thresholds became effective.
To give a little context, the IER is an immigration program introduced for foreign founders providing them with an opportunity to reside in the US for up to 5 (five) years to build their business.
For easy reference of the readers, the IER is divided into three phases as summarized below:
On Eligibility:
- Startup should not be more than 5 years old in USA;
- Each Applicant holds at least 10% shares in the startup with an active role; Up to three applicants/founders can apply;
- The Startup meets at least one of the following criteria:
- Funding of $311,100 or more from a US VC/Angel Investor/Accelerator with demonstrated history of successful investments
- Grants from US federal/State/local governments of at least $124,500 for economic, research and development, or job creation purposes
- Partially meet one or more of the above criteria and prove potential significant benefit to the United States
Conditions:
- Minimum stake of 5% with continuous active role (assuming the dilution in the first phase)
- Meeting one or more of the following criteria:
- Received an additional funding of $622,200 or more from a US VC/Angel Investor/Accelerator with demonstrated history of successful investments
- Generated a revenue of at least $622,200 annually with 20% annual growth rate
- Created 5 full time jobs for US workers
- Partially meet one or more of the above criteria and prove potential significant benefit to the United states
- The startup visa under the IER is granted for a maximum of 5 years (2.5+2.5 years), therefore the startup founders should convert their status to a permanent resident or other categories before the end of mentioned 5 years.
- Two of the key ways of converting the startup visa to a Green Card are provided below:
- Option 1: EB1 Green Card (for a person with extraordinary ability/outstanding professor or researcher/certain multinational executives or managers)
- Option 2: EB2 Green Card (for persons holding an advanced degree or its equivalent with 5 years of experience, or a foreign national who has exceptional ability)
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The International Entrepreneur Rule (IER) was successfully implemented under the Biden administration, providing an avenue for startups to setup their business and build it while being in the US. While future policies under the Trump administration may impact the program, proactive planning can help eXtrepreneurs navigate any potential challenges. The IER program offers a five-year residency to foreign founders, thus providing an excellent opportunity to them to establish their venture and build a strong case to seek long term US residency. By strategically testing waters in a foreign market and establishing a revenue and employment source in the US, eXtrepreneurs can maximize their chances at achieving success in the US startup ecosystem and securing US residency.