Home

We offer you the possibility of getting your business prepared by a team of experts who have keen insight into tomorrow’s business trends. We are committed to your ultimate business success, growth and excellence by consistently providing experience and expertise at the most affordable business and environment by experienced professionals.

E2 VISA OVERVIEW

• The E2 visa is a nonimmigrant visa for treaty investors. The “E” stands for “Treaty”. You can qualify for an E2 visa if you are a national of a country with an E2 treaty with the US.

• The E2 visa offers many benefits for investors and their families, including the ability to live and work in the United States. 

• You can extend your stay indefinitely as long as your business is profitable and meets the visa requirements 

Live in the US: 

• You and your spouse and unmarried children under 21 can live in the US 

Work in the US:  

• You can legally work in the US to manage your business 

• Your spouse can work in the US for any employer

Travel 

• You and your family can travel freely to and from the US

Education

• Your children can attend schools in the US from pre-K through high school 

• Your children can attend universities in the US without a student visa

Other benefits 

• You and your spouse can get Social Security numbers

• You and your spouse can apply for a state driver’s license

Minimum Investment

• While there is no set minimum investment amount for an E-2 US visa, most experts recommend investing at least $100,000 to be considered “substantial” by the USCIS, as the key factor is that the investment must be substantial in relation to the total cost of the business, meaning a higher percentage may be needed for lower-cost businesses; investments below this amount may face increased scrutiny during the application process. 

Key Points about E-2 Visa Investment

No fixed minimum:
The law does not specify a minimum investment amount, but the investment must be considered “substantial” based on the business type and its costs. 

Proportionality test:
The “substantial” requirement is judged based on a proportionality test, where a higher percentage of investment may be needed for lower-cost businesses. 

Business viability:
The investment must be sufficient to ensure the investor’s commitment to the successful operation of the business. 

Case-by-case evaluation:
Each E-2 visa application is reviewed individually, considering the specific business plan and investment amount. 

To share the burden of investment, can Two Partners Obtain an E-2 Visa by Investing Equally ?  

The E-2 visa offers significant opportunities for entrepreneurs who wish to invest in the U.S. and establish a business. However, partnerships may be evaluated differently during the E-2 visa application process. So, can two partners obtain an E-2 visa by investing equally? We will explain the E-2 visa application requirements for partnerships, how each partner is evaluated, and important considerations during the process:

• E-2 Visa Application Requirements in Partnerships

• Each Partner Need to Apply for an E-2 Visa Separately

Key Considerations and Common Issues During the Application Process

Proportionality of Investment
If the investment is not proportional to the size of the business, the application may be denied, even if both partners invest equally. It is essential to accurately calculate the required capital for the business.

Ownership and Control Distribution
While a 50-50 ownership split is acceptable, control and management rights must be clearly documented.
Excessive control by third parties may jeopardize the visa application.

Clarity of Management Roles
Each partner’s role in the business must be clearly defined and documented in the application. Ambiguity or passive roles in management can lead to visa denial.

Complete Documentation
Business plans, financial records, and documents showing each partner’s investment must be thorough and accurate.
Partnership agreements should be detailed and included in the application.

Using a Business LOAN for an E-2 visa

The E-2 visa is an excellent pathway for investors from treaty countries to enter the U.S. and manage their own business. One of the key aspects of securing an E-2 visa is demonstrating a substantial investment in the U.S. enterprise. However, many prospective applicants are unsure if they can use loans to meet the investment requirement. This article will explore how you can effectively use a loan to finance your E-2 visa application and the crucial considerations involved

Understanding the E-2 Visa Investment Requirement 

One requirement for the E-2 Visa is that the applicant invests a substantial amount of capital in a bona fide U.S. enterprise. While no specific minimum investment is set by law, it generally needs to be enough to ensure successful business operation. This often means at least $100,000, but the investment must also be substantial relative to the total business cost. For instance, investing $100,000 in a $100,000 business is substantial, but the same amount in a $500,000 business is not, as it doesn’t cover a significant portion of the overall cost. 

The Role of Loans in E-2 Visa Investments 

When it comes to the source of the investment capital, the regulations state that such investment capital must be the investor’s unsecured personal business capital or capital secured by personal assets. This means that the investment capital for the E-2 Visa must either come from the investor’s own personal funds or from a loan secured by the investor’s personal assets. It cannot be secured by the assets of the U.S. business itself.  

 By using personal assets to secure a loan the investor is demonstrating that his/her funds are at risk, another requirement of the E-2. 

However, this doesn’t necessarily mean you can’t buy an E-2 business and obtain a loan against the business itself. It means that any loan secured against the business won’t count as part of the investment. Let’s look at how this works with a couple of examples. 

Example 1: 

The investor plans to establish a business for $200,000. He has $100,000 in savings from W-2 income and needs a loan for the remaining $100,000.  

If he takes out a home equity loan and uses the additional $100,000, the entire $200,000 would be considered part of the E-2 investment.  

However, if he takes a loan against the business instead, the $100,000 business loan won’t count as part of the investment. Only the $100,000 in his savings would be considered, which may not be substantial relative to the overall cost of the business.   

For a business costing $200,000 or less, the investor typically needs to demonstrate that he has invested 100% of the total cost. By financing 50% of the business through a business loan, the investor cannot have the full amount considered as part of the E-2 investment. 

Example 2:  

The investor plans to purchase a hotel for $5 million. He has $2 million from the sale of a previous business and plans to finance the remaining $3 million through a business loan. Although only the $2 million will be considered part of the investment, this amount alone is likely to be deemed substantial due to the significant size of the investment.  Therefore the business loan in this example will not prevent the investor from meeting the substantiality requirement. 

Conclusion 

It is crucial to understand the significance of the investment amount and proportionality when preparing your E2 visa application. Loans secured by the business or its assets cannot be considered part of the overall investment amount for an E2 investor visa. 

However, personal loans and unsecured loans collateralized by personal assets can be considered towards the investment, as well as other funding mechanisms.

For more details, email us at cs@e2supportcentre.com