By Gabriella Walsh, 2025 J.D. Candidate, University at Buffalo School of Law. This post was written as part of the Entrepreneurship Law Center at UB’s School of Law. 

It is no secret that immigrants play a significant role in the U.S. entrepreneurial landscape. According to a 2022 study from the National Foundation for American Policy, immigrants to the U.S. are more likely to start businesses than native-born Americans. The study found that 55% of the country’s $1 billion startup companies had at least one immigrant founder.

Even more, nearly half of today’s Fortune 500 companies were founded by either immigrants or the children of immigrants, including four of the top 12. Some of the most valuable and well-known immigrant-founded U.S. companies include SpaceX, Stripe, Instacart, Grammarly, Moderna, Uber, Discord and Zoom Video.

Although immigrants are invaluable to the success of United States entrepreneurship, the U.S. immigration system does not provide a practical visa program that would allow entrepreneurs to secure funding to grow their business. The system has traditionally been designed to create pathways for immigrants to fill labor roles through employer sponsorship. Practically speaking, if an immigrant does not have a high level of education or a high level of status within their profession, they would need a U.S. employer sponsorship to secure a visa. 

With an ever-growing competitive global market for starting new companies, an Obama administration-led initiative helped ease the pathway for immigrant entrepreneurship.

In the last days holding office, the Obama administration issued the International Entrepreneur Rule. It was subsequently suspended under the Trump administration but revived under the Biden administration. It is a federal regulation issued by the Department of Homeland Security that has created a clear pathway for high-potential entrepreneurs to stay in the U.S. to start and grow new companies.

Under the International Entrepreneur Rule, the government may use its parole authority to grant a period of authorized stay, on a case-by-case basis, to noncitizen entrepreneurs who show that their stay in the U.S. would provide a significant public benefit through their business venture. This parole option gives entrepreneurs the ability to stay in the U.S. for up to five years if they meet certain requirements.

In a nutshell, here’s how the International Entrepreneur Rule works: The business must have been formed within the last five years, and the company must have already received substantial investment from U.S. investors or government grants (at least $311,071 in qualified investments from qualifying investors or at least $124,429 in qualified government awards or grants). In addition, the business should be able to demonstrate that it has significant potential for rapid growth, job creation and a positive impact on the U.S. economy through these qualified investments. The applicant must own at least 10% interest in the startup, and they should maintain an active role in the overall operations and direction of the business. 

If the applicant is currently in the U.S. on a student visa, they may be permitted to play an active role in their business if they are self-employed on Occupational Practical Training and the business is directly related to their major area of study. Unfortunately, this does not cover every individual in the U.S. on a student visa interested in starting a business.

Entrepreneurs granted parole are eligible to work only for their startup business while in the U.S. However, the spouse of the entrepreneur will be permitted to accompany them and be eligible to receive employment authorization. 

The International Entrepreneur Rule is a great option for innovators who want to bring their ideas to life in the U.S., but don’t qualify for traditional visas like the H-1B. When the five-year clock has reached its close, the entrepreneur can then attempt to use an immigration category to gain permanent residence. A successful business could allow individuals to qualify in the employment-based first preference (extraordinary ability) or second preference, with the possibility to self-petition with a “national interest” waiver. As opposed to temporary worker visas, these employment-based visa categories allow for the immigrant to reside in the United States permanently. 

The U.S. Citizenship and Immigration Services (USCIS) Policy Manual on the International Entrepreneur Rule provides comprehensive guidance on all aspects of parole option. This manual is available here.

Disclaimer: This article is meant for informational purposes only and does not constitute legal advice or create an attorney client relationship. Should you or your company be facing legal issues, make sure to consult with an attorney about the facts and circumstances unique to your situation.