Sure, let me simplify and rewrite the blog post for better understanding:
The United States will make it harder to use the International Entrepreneur Rule (IER) starting October 1, 2024, by raising the amount of money and income needed.
This rule helps people from other countries start businesses in the U.S. They can get help from approved investors instead of using their own money.
According to TravelBiz, this change will make it tougher for foreign business owners who want to stay in the U.S. temporarily for up to five years to work on their startups.
The goal is to only help the best business ideas with the IER.
What is the International Entrepreneur Rule?
The International Entrepreneur Rule lets foreign businesspeople start businesses in the U.S. without using a lot of their own money. Instead, they need to show their startup can grow and create jobs by getting backing from approved U.S. investors. Important points include:
- Entrepreneurs could be living outside the U.S. or already here.
- The startup must have been created in the U.S. in the last five years.
What’s Changing?
From October 1, 2024, the IER rules are getting stricter. Here are the new rules:
- Investment Requirement: Entrepreneurs need to show they have at least $311,071 in approved investments, up from $264,147.
- Government Grants: The minimum amount for approved government grants is now $124,429, up from $105,659.
- Re-parole Consideration: The earnings needed for re-parole have increased from $528,293 to $622,142.
The U.S. Citizenship and Immigration Services (USCIS) will update the forms needed to apply with these new amounts.
What Makes an Investor Qualified?
To be a qualified investor under the IER, a person or group must have invested at least $746,571 in startups over five years. Previously, the amount was $633,952. Additionally, two of the startups must do one of these:
- Create at least five jobs.
- Earn $622,142 in a year, with growth of at least 20% yearly, up from $528,293 before.
Key Details to Remember
Entrepreneurs who get approval under the IER can stay in the U.S. for 2.5 years at first, and this can be extended for another 2.5 years, totaling up to five years. During this time, they can work on their startups, and their spouses can apply for work permits too.
As the U.S. is raising the investment requirements for the International Entrepreneur Rule, it will be a more challenging path for foreign business owners. These new rules might be hard for many people dreaming of starting a business, but they also show support for great ideas that can grow the economy and make jobs.
Entrepreneurs will need to focus more on the quality of their business ideas rather than just applying for the sake of it.