[Federal Register Volume 89, Number 143 (Thursday, July 25, 2024)]
[Rules and Regulations]
[Pages 60298-60301]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-16138]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Citizenship and Immigration Services

8 CFR Part 212

[CIS No. 2769-24; DHS Docket No. USCIS-2021-0018]
RIN 1615-AC75


International Entrepreneur Program: Fiscal Year 2025 Automatic 
Increase of Investment and Revenue Amount Requirements

AGENCY: U.S. Citizenship and Immigration Services (USCIS), Department 
of Homeland Security (DHS).

ACTION: Final rule; technical amendment.

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SUMMARY: On January 17, 2017, DHS published a final rule with new 
regulatory provisions guiding the use of parole on a case-by-case basis 
with respect to certain entrepreneurs of start-up entities. The 2017 
regulation provided that the investment and revenue amount requirements 
would automatically adjust every three years. DHS is issuing this rule 
to update the investment and revenue amounts in the regulations to 
adjust for inflation.

DATES: This final rule is effective on October 1, 2024.

FOR FURTHER INFORMATION CONTACT: For technical questions only: Charles 
L. Nimick, Chief, Business and Foreign Workers Division, Office of 
Policy and Strategy, U.S. Citizenship and Immigration Services, 
Department of Homeland Security, 5900 Capital Gateway Drive, Camp 
Springs, MD 20588-0009, telephone (240) 721-3000 (this is not a toll-
free number).

SUPPLEMENTARY INFORMATION:

I. Background

A. The International Entrepreneur Program

    On January 17, 2017, the Department of Homeland Security (DHS) 
published a final rule with new regulatory provisions guiding the use 
of parole on a case-by-case basis with respect to entrepreneurs of 
start-up entities. These entrepreneurs would be eligible for 
consideration of parole if they could demonstrate a significant public 
benefit to the United States through substantial and demonstrated 
potential for rapid business growth and job creation.\1\ The final rule 
was to be effective July 17, 2017.\2\
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    \1\ 82 FR 5238 (Jan. 17, 2017).
    \2\ Id.
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    On July 11, 2017, DHS published a rule delaying the effective date 
to March 14, 2018.\3\ Two individuals, two businesses, and the National 
Venture Capital Association sued DHS, challenging the delay rule for 
violating the Administrative Procedure Act's notice and comment 
requirement at 5 U.S.C. 553. The D.C. Circuit, agreeing with the 
plaintiffs, vacated the delay rule on December 1, 2017, allowing the 
rule to go into effect without further delay.\4\
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    \3\ 82 FR 31887 (July 11, 2017).
    \4\ Nat'l Venture Capital Assoc., et al., v. Duke, 291 F. Supp. 
3d 5 (D.D.C. Dec. 1, 2017).
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    The regulatory provisions established by the January 17, 2017 rule, 
which were implemented after the delay rule was vacated on December 1, 
2017,\5\ provide specific investment and revenue amounts that can 
support an application for parole and re-parole.\6\ The rule also 
promulgated a regulatory provision at 8 CFR 212.19(l) stating that the 
investment and revenue amounts will be automatically adjusted every 3 
years by the Consumer Price Index for All Urban Consumers (CPI-U) and 
posted on the USCIS website at www.uscis.gov and that investment and 
revenue amounts adjusted under 8 CFR 212.19(l) will apply to all 
applications filed on or after the beginning of the fiscal year for 
which the adjustment is made.\7\
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    \5\ On May 29, 2018, DHS published a notice of proposed 
rulemaking (NPRM) to remove the international entrepreneur program 
from DHS regulations, but never finalized the proposal. See 83 FR 
24415 (May 29, 2018). Instead, on May 11, 2021, DHS withdrew the 
NPRM. See 86 FR 25809 (May 11, 2021).
    \6\ See 8 CFR 212.19(a)(5), (b)(2)(ii), and (c)(2)(ii).
    \7\ While DHS did not discuss these automatic adjustments in the 
preamble to the final rule, DHS explained in the proposed rule that 
it believed that automatically adjusting the minimum dollar amounts 
by the CPI-U every 3 years will maintain investment and revenue 
requirements at an appropriate level in relation to future economic 
conditions. DHS also believed automatically adjusting the minimum 
dollar amounts in 3-year increments would be more manageable 
operationally for DHS and less burdensome to applicants than 
adjustments at more frequent intervals. See generally 81 FR 60129, 
60151 (Aug. 31, 2016).
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B. Investment and Revenue Increased for Fiscal Year 2022

    On September 13, 2021, DHS issued a final rule (the 2021 final 
rule) adjusting the investment and revenue

[[Page 60299]]

amounts beginning in FY 2022.\8\ The automatic adjustment required by 8 
CFR 212.19(l) affected the amounts then stated in 8 CFR 212.19(a)(5) 
(2020) (no less than $600,000 in aggregate investments by the 
qualifying investor and at least $500,000 in revenue by at least two 
entities), 8 CFR 212.19(b)(2)(ii)(B) (2020) (at least $250,000 in 
investments or at least $100,000 in government awards or grants), and 8 
CFR 212.19(c)(2)(ii)(B) (2020) (at least $500,000 in additional 
investment or revenue). As shown in the 2021 final rule, these amounts 
were adjusted for inflation using the CPI-U calculator published by the 
Department of Labor, Bureau of Labor Statistics.\9\
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    \8\ 86 FR 50839 (Sept. 13, 2021). The current amounts and 
analysis for calculating them appears in that rule.
    \9\ See https://www.bls.gov/data/inflation_calculator.htm.
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    In light of these automatic adjustments in December 2020, beginning 
in FY 2022, under 8 CFR 212.19(b)(2)(ii)(B) as updated by the 2021 
final rule, an applicant may be considered for initial parole, on a 
case-by-case basis, if they demonstrate that their entity has received, 
within 18 months immediately preceding the filing of an application for 
initial parole, either a qualified investment amount of at least 
$264,147 from one or more qualified investors or an amount of at least 
$105,659 through one or more qualified government awards or grants. In 
the alternative, an applicant who partially meets one or both of those 
criteria may still qualify for further consideration by providing other 
reliable and compelling evidence of the start-up entity's substantial 
potential for rapid growth and job creation. Similarly, revised 8 CFR 
212.19(c)(2)(ii)(B) provided that an applicant may be considered for 
re-parole if they establish that during the initial parole period, 
their entity:
     Received at least $528,293 in qualifying investments, 
qualified government grants or awards, or a combination of such 
funding, during the initial parole period;
     Created at least 5 qualified jobs with the start-up entity 
during the initial parole period; or
     Reached at least $528,293 in annual revenue in the United 
States and averaged 20 percent in annual revenue growth during the 
initial parole period.
    In the alternative, an applicant who meets the criteria in 
paragraph (c)(2)(ii)(A) and partially meets one or more of the criteria 
in paragraph (c)(2)(ii)(B) of Sec.  212.19 could still qualify for 
consideration for re-parole by providing other reliable and compelling 
evidence of the start-up entity's substantial potential for rapid 
growth and job creation. Finally, revised 8 CFR 212.19(a)(5) defined a 
qualified investor as an individual or investor who, among other 
requirements, has made investments in start-up entities comprising a 
total of no less than $633,952 in a specified 5-year period and, 
subsequent to the investment, at least two of those entities each 
created at least 5 jobs or generated at least $528,293 in revenue with 
an average annualized revenue growth of at least 20 percent.
    The revised amounts in the 2021 final rule were also posted on the 
USCIS website, https://www.uscis.gov/working-in-the-united-states/entrepreneur-employment-pathways/nonimmigrant-or-parole-pathways-for-entrepreneur-employment-in-the-united-states.

C. Investment and Revenue Increase Beginning With Fiscal Year 2025

    In this final rule and in accordance with the 2017 final rule, DHS 
calculates new investment and revenue amounts and revises the 
applicable provisions to adjust for inflation.\10\ According to the 
CPI-U calculator, $105,659 in December 2020 had a present dollar value 
of $124,429 in December of 2023 (FY 2024); and $264,147 in December 
2020 had a present dollar value of $311,071 in December 2023. The CPI-U 
calculator also showed that $528,293 in December 2020 had a present 
dollar value of $622,142 in December 2023; and $633,952 in December 
2020 had a present dollar value of $746,571 in December 2023. Beginning 
in Fiscal Year 2025 (i.e., beginning October 1, 2024), under 8 CFR 
212.19(b)(2)(ii)(B) as updated by this final rule, an applicant may be 
considered for initial parole on a case-by-case basis if they 
demonstrate that their entity has received, within 18 months 
immediately preceding the filing of an application for initial parole, 
either a qualified investment amount of at least $311,071 from one or 
more qualified investors or an amount of at least $124,429 through one 
or more qualified government awards or grants.\11\ In the alternative, 
an applicant who partially meets one or both of those criteria may 
still qualify for further consideration by providing other reliable and 
compelling evidence of the start-up entity's substantial potential for 
rapid growth and job creation.\12\ Similarly, revised 8 CFR 
212.19(c)(2)(ii)(B) provides that an applicant may be considered for 
re-parole if they establish that during the initial parole period, 
their entity:
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    \10\ DHS rounded these amounts to the nearest dollar.
    \11\ 8 CFR 212.19(b)(2)(ii)(B).
    \12\ 8 CFR 212.19(b)(2)(iii).
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     Received at least $622,142 in qualifying investments, 
qualified government grants or awards, or a combination of such 
funding, during the initial parole period;
     Created at least 5 qualified jobs with the start-up entity 
during the initial parole period; or
     Reached at least $622,142 in annual revenue in the United 
States and averaged 20 percent in annual revenue growth during the 
initial parole period.\13\
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    \13\ 8 CFR 212.19(c)(2)(ii)(B).
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    In the alternative, an applicant who meets the criteria in 
paragraph (c)(2)(ii)(A) and partially meets one or more of the criteria 
in paragraph (c)(2)(ii)(B) of Sec.  212.19 could still qualify for 
consideration by providing other reliable and compelling evidence of 
the start-up entity's substantial potential for rapid growth and job 
creation.\14\ Finally, revised 8 CFR 212.19(a)(5) defines a qualified 
investor as an individual or investor who, among other requirements, 
has made investments in start-up entities comprising a total of no less 
than $746,571 in a specified 5-year period and, subsequent to the 
investment, at least two of those entities each created at least 5 jobs 
or generated at least $622,142 in revenue with an average annualized 
revenue growth of at least 20 percent.
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    \14\ 8 CFR 212.19(c)(2)(iii).
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    The revised amounts in this final rule will be posted on the USCIS 
website, https://www.uscis.gov.

II. Statutory and Regulatory Requirements

A. Executive Order (E.O.) 12866 (Regulatory Planning and Review), as 
Amended by E.O. 14094 (Modernizing Regulatory Review), and E.O. 13563 
(Improving Regulation and Regulatory Review)

    Executive Orders 12866 (Regulatory Planning and Review), as amended 
by Executive Order 14094 (Modernizing Regulatory Review), and 13563 
(Improving Regulation and Regulatory Review) direct agencies to assess 
the costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563

[[Page 60300]]

emphasizes the importance of quantifying costs and benefits, reducing 
costs, harmonizing rules, and promoting flexibility.
    The Office of Management and Budget (OMB) has not designated this 
rule a significant regulatory action under section 3(f) of Executive 
Order 12866, as amended by Executive Order 14094. Accordingly, OMB has 
not reviewed this regulatory action.
    The population that may be affected by this rule are the applicants 
that file Form I-941, Application for Entrepreneur Parole, after this 
rule becomes effective. Table 1 presents the historical annual receipts 
for Form I-941 received for FYs 2018-2023. During this period, 112 
total Form I-941 applications have been filed with USCIS, and DHS 
estimates that USCIS received an average of 19 (rounded) Form I-941 
applications per year.

                                Table 1--Annual Receipts of Form I-941, Application for Entrepreneur Parole, FY 2018-2023
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                                                                                                                                               6-year
                                                                                                                                               average
                         Form                               2018          2019          2020          2021          2022          2023         annual
                                                                                                                                              receipts
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Form I-941............................................           19             8             1            24            39            21            19
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Source: USCIS, Immigrant Program Office, Claims 3 (C3) database (as of January 11, 2024).
Note: Calculation of 6-year Average Annual receipts is rounded up.

B. Administrative Procedure Act

    Under the Administrative Procedure Act (5 U.S.C. 553(b)), an agency 
may waive the normal notice and comment requirements if it finds, for 
good cause, that they are impracticable, unnecessary, or contrary to 
the public interest. The final rule merely updates the investment and 
revenue amounts to account for inflation consistent with the regulatory 
requirement at 8 CFR 212.19(l) providing that these amounts will 
automatically adjust every three years by the Consumer Price Index. 
This amendment is a technical change to ensure that the regulation 
accurately reflects these updated investment amounts, automatically 
adjusted for inflation, and avoids potential confusion for applicants 
and other interested parties regarding the applicable investment 
amounts under 8 CFR 212.19. Therefore, notice and comment for this rule 
is unnecessary because the rule is simply a ministerial update to the 
regulations. For the same reasons, pursuant to 5 U.S.C. 553(d)(3), a 
delayed effective date is not required.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), as amended 
by the Small Business Regulatory Enforcement and Fairness Act of 1996 
(SBREFA), requires an agency to prepare and make available to the 
public a regulatory flexibility analysis that describes the effect of a 
proposed rule on small entities (i.e., small businesses, small 
organizations, and small governmental jurisdictions) when the agency is 
required ``to publish a general notice of proposed rulemaking for any 
proposed rule.'' \15\ Because this rule is being issued as a final 
rule, on the grounds set forth in section II.A. of this rule, a 
regulatory flexibility analysis is not required under the RFA.
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    \15\ 5 U.S.C. 603(a).
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D. Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (UMRA) \16\ is intended, 
among other things, to curb the practice of imposing unfunded Federal 
mandates on State, local, and Tribal governments. Title II of UMRA 
requires each Federal agency to prepare a written statement assessing 
the effects of any Federal mandate in a proposed rule, or final rule 
for which the agency published a proposed rule, that may directly 
result in a $100 million or more expenditure (adjusted annually for 
inflation) in any one year by State, local, and Tribal governments, in 
the aggregate, or by the private sector. This rule is exempt from the 
written statement requirement because USCIS did not publish a notice of 
proposed rulemaking for this rule. Additionally, the inflation-adjusted 
value of $100 million in 1995 is approximately $199.96 million in 2023 
based on the Consumer Price Index for All Urban Consumers (CPI-U).\17\ 
This final rule does not contain such a mandate. The requirements of 
title II of UMRA, therefore, do not apply, and DHS has not prepared a 
statement under UMRA.
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    \16\ 2 U.S.C. 1501 et seq.
    \17\ See BLS, ``Historical Consumer Price Index for All Urban 
Consumers (CPI-U): U.S. city average, all items, by month,'' 
www.bls.gov/cpi/tables/supplemental-files/historical-cpi-u-202312.pdf (last visited Mar. 18, 2024). Calculation of inflation:
    (1) Calculate the average monthly CPI-U for the reference year 
(1995) and the current year (2023);
    (2) Subtract reference year CPI-U from current year CPI-U;
    (3) Divide the difference of the reference year CPI-U and 
current year CPI-U by the reference year CPI-U;
    (4) Multiply by 100 [(Average monthly CPI-U for 2023-Average 
monthly CPI-U for 1995)/(Average monthly CPI-U for 1995)] * 100 = 
[(304.702 -152.383)/152.383] * 100 = (152.318/152.383) * 100 = 
0.99957 * 100 = 99.96 percent (rounded). Calculation of inflation-
adjusted value: $100 million in 1995 dollars * 1.9996 = $199.96 
million in 2023 dollars.
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E. Executive Order 13132 (Federalism)

    The rule will not have substantial direct effects on the States, on 
the relationship between the National Government and the States, or on 
the distribution of power and responsibilities among the various levels 
of government. Therefore, in accordance with section 6 of Executive 
Order 13132, DHS has determined that this final rule does not have 
sufficient federalism implications to warrant the preparation of a 
federalism summary impact statement.

F. Executive Order 12988 Civil Justice Reform

    This rule meets the applicable standards set forth in sections 3(a) 
and 3(b)(2) of Executive Order 12988.

G. National Environmental Policy Act (NEPA)

    DHS and its component agencies analyze their actions to determine 
whether the National Environmental Policy Act (NEPA), 42 U.S.C. 4321 et 
seq., applies to them and, if so, what degree of analysis is required. 
DHS Directive 023-01, Revision 01 \18\ and ``Instruction Manual 023-01-
001-01 Revision 01, (Instruction Manual) \19\ establish the policies 
and procedures DHS and its component agencies use to comply with NEPA 
and the Council on

[[Page 60301]]

Environmental Quality (CEQ) regulations for implementing NEPA.\20\
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    \18\ See DHS, ``Implementation of the National Environmental 
Policy Act,'' Directive 023-01, Revision 01 (Oct. 31, 2014), 
available at https://www.dhs.gov/sites/default/files/publications/DHS_Directive%20023-01%20Rev%2001_508compliantversion.pdf.
    \19\ Available at https://www.dhs.gov/sites/default/files/publications/DHS_Instruction%20Manual%20023-01-001-01%20Rev%2001_508%20Admin%20Rev.pdf.
    \20\ 40 CFR parts 1500 through 1508.
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    The CEQ regulations allow Federal agencies to establish, with CEQ 
review and concurrence, categories of actions (``Categorical 
Exclusions'') which experience has shown do not individually or 
cumulatively have a significant effect on the human environment and, 
therefore, do not require the preparation of an Environmental 
Assessment or Environmental Impact Statement.\21\ Appendix A of the 
Instruction Manual- lists the DHS Categorical Exclusions.\22\ Under DHS 
NEPA implementing procedures, for an action to be categorically 
excluded, it must satisfy each of the following three conditions: (1) 
The entire action clearly fits within one or more of the Categorical 
Exclusions; (2) the action is not a piece of a larger action; and (3) 
no extraordinary circumstances exist that create the potential for a 
significant environmental effect.\23\
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    \21\ 40 CFR 1507.3(e)(2)(ii) and 1501.4.
    \22\ See Instruction Manual, Appendix A, Table 1.
    \23\ See Instruction Manual, section V.B(2)(a) through (c).
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    In this rule, DHS is updating regulations codified in 8 CFR part 
212 to reflect the automatic increase of the investment and revenue 
amount requirements for the International Entrepreneur Parole Program 
effective October 1, 2024. On January 17, 2017, DHS published a final 
rule with new regulatory provisions guiding the use of parole on a 
case-by-case basis with respect to certain entrepreneurs of start-up 
entities. The 2017 regulation provided that the investment and revenue 
amount requirements would automatically adjust every three years. On 
September 13, 2021, DHS issued a final rule that adjusted the 
investment and revenue amounts as of October 1, 2021. DHS is issuing 
this rule to update the investment and revenue amounts in the 
regulations to adjust for inflation. DHS is not aware of any 
significant impact on the environment, or any change in environmental 
effect, that will result from this final rule. This rule is of a 
strictly administrative nature to make required adjustments in 
investment and revenue amounts. DHS finds promulgation of the rule 
clearly fits within categorical exclusion A3, established in the 
Department's NEPA implementing procedures.
    This final rule is a standalone regulatory action applicable to the 
International Entrepreneur Parole Program and is not part of any larger 
action. In accordance with its NEPA implementing procedures, DHS has 
determined that this final rule will not result in any major Federal 
action that would significantly affect the quality of the human 
environment, and that no extraordinary circumstances exist that would 
create the potential for significant environmental effects requiring 
further analysis and documentation. Therefore, this final rule is 
categorically excluded and no further NEPA analysis or documentation is 
required.

H. Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (PRA), 44 U.S.C. 3501-
3512, DHS must submit to the Office of Management and Budget (OMB) for 
review and approval, any reporting requirements inherent in a rule, 
unless they are exempt. This rule does not call for a new collection of 
information under the Paperwork Reduction Act of 1995. Separate from 
but related to the technical amendments made in this Final Rule, DHS 
has revised the Application for Entrepreneur Parole, Form I-941, to 
conform with the new investment and revenue amounts set forth by this 
Final Rule. The revised information collection has been submitted for 
approval to the Office of Management and Budget (OMB) for review and 
approval under procedures covered under the PRA.

List of Subjects in 8 CFR Part 212

    Administrative practice and procedure, Aliens, Immigration, 
Passports and visas, Reporting and recordkeeping requirements.

Amendments to the Regulations

    For the reasons stated in the preamble, DHS amends 8 CFR part 212 
as set forth below:

PART 212--DOCUMENTARY REQUIREMENTS: NONIMMIGRANTS; WAIVERS; 
ADMISSION OF CERTAIN INADMISSIBLE ALIENS; PAROLE

0
1. The general authority citation for part 212 continues to read as 
follows:

    Authority: 6 U.S.C. 111, 202(4) and 271; 8 U.S.C. 1101 and note, 
1102, 1103, 1182 and note, 1184, 1185 note (sec. 7209, Pub. L. 108-
458, 118 Stat. 3638), 1187, 1223, 1225, 1226, 1227, 1255, 1359; 8 
CFR part 2. Section 212.1(q) also issued under sec. 702, Pub. L. 
110-229, 122 Stat. 754, 854.
* * * * *

0
2. In Sec.  212.19, revise paragraphs (a)(5)(i) and (ii), 
(b)(2)(ii)(B)(1) and (2), and (c)(2)(ii)(B)(1) and (3) to read as 
follows:


Sec.  212.19  Parole for entrepreneurs.

    (a) * * *
    (5) * * *
    (i) The individual or organization made investments in start-up 
entities in exchange for equity, convertible debt, or other security 
convertible into equity commonly used in financing transactions within 
their respective industries comprising a total in such 5-year period of 
no less than $746,571; and
    (ii) Subsequent to such investment by such individual or 
organization, at least 2 such entities each created at least 5 
qualified jobs or generated at least $622,142 in revenue with average 
annualized revenue growth of at least 20 percent.
* * * * *
    (b) * * *
    (2) * * *
    (ii) * * *
    (B) * * *
    (1) Received, within 18 months immediately preceding the filing of 
an application for initial parole, a qualified investment amount of at 
least $311,071 from one or more qualified investors; or
    (2) Received, within 18 months immediately preceding the filing of 
an application for initial parole, an amount of at least $124,429 
through one or more qualified government awards or grants.
* * * * *
    (c) * * *
    (2) * * *
    (ii) * * *
    (B) * * *
    (1) Received at least $622,142 in qualifying investments, qualified 
government grants or awards, or a combination of such funding, during 
the initial parole period;
* * * * *
    (3) Reached at least $622,142 in annual revenue in the United 
States and averaged 20 percent in annual revenue growth during the 
initial parole period.
* * * * *

Alejandro N. Mayorkas,
Secretary, U.S. Department of Homeland Security.
[FR Doc. 2024-16138 Filed 7-24-24; 8:45 am]
BILLING CODE 9111-97-P