Lines of Credit Are Acceptable as a Funds Source

Detailed Documentation is Required

By Isaul Verdin, VERDIN Founder and Managing Partner

Foreign entrepreneurs seeking an E-2 visa can show that they obtained their business funds through a line of credit. However, correct and detailed documentation is important.

See full details below: Documenting Lines of Credit for E-2 Visas.

To improve the odds of obtaining an E2 visa, the sources of funding must be carefully documented in detail.

E-2 visa entrepreneurs need to demonstrate the sources of their business funds: from origination to the ultimate use of those funds.  The clearer the path, the more likely the U.S. government will issue the E-2 visa. The U.S. government investigates the source of E-2 visa business capital to ensure that marginality requirements are met; and to ensure that all business capital is legally obtained.

The USCIS will seek to ensure that the entrepreneur is providing E-2 Visa business capital from a legal and verifiable source. And the sources of business capital may not be marginal.

VERDIN Law business and entrepreneur group provides help to clients wanting to establish and/or expand their business operations in the United States. Questions? Contact VERDIN. Contact us by email or call 214-741-1700.

What is an E-2 Visa?

The E-2 nonimmigrant classification allows a national of a treaty country (a country with which the United States maintains a treaty of commerce and navigation) to be admitted to the United States – when investing a substantial amount of capital into forming a U.S. business.

Certain employees of such a person, or of a qualifying organization, may also be eligible for this classification.

The E-2 visa applicant must document the 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 E-2 business fails. The capital used in the enterprise may not be marginal. The E-2 visa applicant 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. From E-2 Visas, USCIS

→ In some circumstances, it is possible to convert an E-2 visa into U.S. permanent residency and a green card. See Using the E-2 Entrepreneur Visa as a Stepping Stone to EB-5 Permanent Residence.

Documentation for E-2 Visas – Using Unsecured Loans as a Source of Capital

If a foreign entrepreneur uses a line of credit as a source of capital, the terms of the credit line must establish that the loan is unsecured. An unsecured loan is a loan that is issued and supported only by the borrower’s creditworthiness, rather than by any type of collateral. Investopedia

Documentation for E-2 Visas – Using Secured Loans as a Source of Capital

If the line of credit is secured, the E-2 entrepreneur must establish that the security or collateral is based on the assets of the individual investor; and not the corporate or business assets.

Tip: The US government requires less documentation for unsecured loans.  In the event that the entrepreneur includes funds from a line of credit that is unsecured, then it is important to submit the written agreement for the line of credit that establishes that the line is unsecured.

In other words, the documents need to reflect that the terms are unsecured.  Given that these documents are sometimes lengthy, it would be more efficient to highlight the terms that show the unsecured nature of the agreement before submitting the evidence to the U.S. government.

E-2 Visa Application Points to Consider

VERDIN attorneys generally advise E-2 visa entrepreneurs to combine a few different sources of capital – and lines of credit can add to the mix.

Foreign entrepreneurs should consider using lines of credit in the E-2 Visa application. Lines of credit not only provide essential capital for the new business – they provide a recognized source of capital to use in obtaining an E-2 visa.

VERDIN E2 Visas Business and Entrepreneur Group

VERDIN’s business and  entrepreneur group provides help to clients wanting to establish and/or expand their business operations in the United States. We have helped clients in multiple industries, including: international trade, real estate, restaurants and hospitality, technology, beauty and fashion, retail and services.

VERDIN represents clients in business planning and E visa matters involving real estate ventures, technology start-ups, business acquisitions, or new business formations. See E-2 Entrepreneur Visa Potential Booming in Frisco TX Area.

Our team is especially focused on forming a strategic relationship with our clients to aid them to succeed in the early planning stages. Many of our clients retain us at early stage planning to maximize opportunities for success.

E-2 Visa Business Planning

We provide international clients strategic advice on starting and operating a new venture to secure immigration benefits. We address preliminary business planning to include business modeling, legal entity selection, business plan preparation and revision; as well as business document preparation for incorporation and owner agreements.

VERDIN Law is experienced in handling complex E-2 entrepreneur cases.

We routinely deal with US Citizenship and Immigration Services, US embassies and consulates around the world to help our clients achieve their business related visas. We develop strategies to effectively navigate the statutory and regulatory requirements. VERDIN participates in professional development training and mentoring programs as part of our ongoing professional growth. Equally important, we stay informed on changes related to policies and procedures affecting our client’s cases.

In addition, we assist E-2 designated businesses petition for foreign employees with special qualifications that are essential for the business.

Isaul Verdin has extensive experience advising multinational companies and entrepreneurs on complex US immigration matters.

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. These 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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