E2 Visa Investment Funds Needed
| Foreign investors sometimes worry they will not qualify for an E2 visa because they have insufficient funds to meet the marginality requirements to invest into a U.S. enterprise.
U.S. government officials will seek to ensure that the investor is providing the E2 Visa investment capital from a legal and verifiable source.
Strategies to Meet E2 Visa Investment Requirements With Less Than Ideal Capital
The following are three strategies to meet the E2 visa investment requirement in situations where foreign investors do not possess sufficient capital on their own.
- Gifting. A great source of capital is a family gift. As long as foreign investors can show a legitimate gift, then it is completely appropriate to obtain capital through gifting. The U.S. government will allow foreign investors to use gifted money toward the investment.
Tip: Prepare a notarized document reflecting the gift from the family member, and then trace the transfer of capital from the family member to the investor.
- Lending. Foreign investors can also use borrowed funds. Again, the U.S. government will allow foreign investors to borrow capital to apply toward their investment. In these cases, foreign investors can obtain an unsecured loan or a loan secured by personal assets.
Tip: If applying for a secured loan, ensure that the underlying secured assets are personal and not business assets.
- Pooling Investment. This is a favorite strategy of mine. In essence, if one foreign investor does not have sufficient capital to satisfy the substantiality of the total investment, then he or she can pool assets with other foreign investors of the same nationality.
Tip: Form a holding company to pool the assets, and then apply for the E2 visa through the holding company. This is a great strategy because multiple families can obtain the E2 visa with only one business project.
E2 Visa Applications – Get Assistance from an Experienced Immigration Attorney
Because E2 Visa strategies must be carefully documented and implemented, it is recommended to acquire the services of an experienced Immigration Attorney, Board Certified in Immigration.
General Qualifications of an E2 Visa Treaty Investor
To qualify for E-2 Visa classification, the treaty investor must:
- Be a national of a country with which the United States maintains a treaty of commerce and navigation
- Have invested, or be actively in the process of investing, a substantial amount of capital in a bona fide enterprise in the United States
- Be seeking to enter the United States solely to develop and direct the investment enterprise. This is established by showing at least 50% ownership of the enterprise or possession of operational control through a managerial position or other corporate device.
An investment is the treaty investor’s placing of capital, including funds and/or other assets, at risk in the commercial sense with the objective of generating a profit. The capital must be subject to partial or total loss if the investment fails. The treaty investor must show that the funds have not been obtained, directly or indirectly, from criminal activity. See 8 CFR 214.2(e)(12) for more information.
A substantial amount of capital is:
- Substantial in relationship to the total cost of either purchasing an established enterprise or establishing a new one
- Sufficient to ensure the treaty investor’s financial commitment to the successful operation of the enterprise
- Of a magnitude to support the likelihood that the treaty investor will successfully develop and direct the enterprise. The lower the cost of the enterprise, the higher, proportionately, the investment must be to be considered substantial.
A bona fide enterprise refers to a real, active and operating commercial or entrepreneurial undertaking which produces services or goods for profit. It must meet applicable legal requirements for doing business within its jurisdiction.
E2 Visa or Immigration Questions? Please Contact VERDIN
Isaul Verdin has extensive experience advising multinational companies and entrepreneurs on complex US immigration matters involving investments.
Mr. Verdin focuses on advising companies on structuring entities, acquisitions, and strategic expansion to satisfy US immigration E-1, E2, L1A, L1B, or EB-1 objectives in a variety of fields.
Investment visa business opportunities include real estate, aviation, technology, manufacturing, retail, luxury goods, and professional services. Additionally, he litigates deportation defense matters throughout the US.
VERDIN boasts a combined 70 years of experience in immigration law. Since its inception, VERDIN has gained a reputation for prevailing in even the most complicated immigration matters.
“As a Board Certified, Immigration Lawyer (Texas Board of Legal Specialization) with over 17 years of experience, my passion is immigration law. We will listen to your concerns, answer all your questions, and expertly guide you through your immigration process.” ~ Isaul Verdin, Founder and Managing Attorney
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