Investor Visas (E2 & EB-5)
Foreign citizens investing substantial funds in US enterprises may qualify for a Non-Immigrant Temporary Visa (E2) or for an Immigrant Permanent Visa (EB5).
E2 NON-IMMIGRANT TEMPORARY INVESTOR VISA
Foreign citizens investing substantial funds in US enterprises may qualify for a Non-Immigrant Temporary Visa (E2) or for an Immigrant Permanent Visa (EB5).
For those who are seriously committed to a major business project, the US Government offers the E-2 Investor Visa depending on the investor’s country of citizenship.
To be clear, a basic entrepreneurial project will not be enough to obtain this type of visa, as great as it may be. The consular officer will request to see concrete steps toward the project’s realization.
Here are the main requirements for obtaining an E-2 Investor Visa:
1. “Nationality”
It is required that at least 50% of the US company sponsoring the E2 Visa is owned by citizens having the same nationality of the applicant (keeping in mind that both individuals with double-citizenship and green card holders are considered Americans by the US Government for E2 purposes).
2. “Concreteness”
To be considered adequate, the investment has to be active, which means to be real, concrete and the outcome of a serious financial commitment. The investment should be at risk, which means that a simple transfer of capital from a foreign bank account will not be sufficient to get an E2 Investor Visa. A number of additional steps (purchase of equipment, lease of commercial premises, and so on) are required.
3. “Liquidity”
“How much should I invest to obtain the visa?” The law says that the investment needs to be substantial, and therefore the amount is relative to the specific industry. For instance, if you want to open a new restaurant with 100 seats on Fifth Avenue in New York City, $100,000 will not be enough. On the other hand, we have had investor visas approved with as little as $80,000 when the start-up costs were relatively low.
To be defined substantial, the investment has to be:
• Proportional to the value of the business (in case of pre-existing one)
or
• Enough to guarantee the creation of a new business.
4. “Not Marginal”
The investment shall be able to create new job opportunities for American citizens and not only for the investor and his or her family. In the case of start-ups, the initial business plan will have to demonstrate in great detail how these job opportunities will be created.
One of the best features of the E2 Investor Visa program is that the investor is allowed to hire and sponsor other E2 visas for essential employees and managers having the same nationality as the principal investor.
The E2 Non-Immigrant Visa is granted for up to 5 years, although investors can obtain unlimited renewals as long as the above-mentioned requirements are still satisfied.
EB-5 IMMIGRANT PERMANENT INVESTOR VISA
The EB-5 category allows entrepreneurs to apply for a green card if they make a substantial investment in a commercial enterprise in the U.S., and plan to create or preserve ten permanent full-time jobs for qualified US workers. Immigrants can invest directly in a job-creating business, or they can invest through Regional Centers approved by USCIS to promote economic growth in
designated areas.
Here are the most significant requirements for obtaining the EB-5 Immigrant Investor Visa:
1. Investment
At least $1,800,000, or $900,000 if the investment is made in a Targeted Employment Area (TEA). A TEA is either: A) a “rural area”, which is an area outside of Metropolitan Statistical Areas (MSAs) and outside of towns of 20,000 persons; or B) a “high unemployment area”, which is an area where the unemployment rate is at least 150% of the national average.
2. Jobs
Creation of 10 Permanent full-time jobs for qualified US workers in a new commercial enterprise or preserving of 10 jobs for qualified US workers in a troubled business.
3. Direct Investment vs Regional Center
A Regional Center (RC) is an entity that has received regional center designation from United States Citizenship and Immigration Services (USCIS) to secure foreign investment under the EB-5 program. Although a direct investment typically gives investors a better rate of return, the vast majority of the EB-5 Investor Visas are approved through a RC. This scheme is very attractive because the investor in a RC is free of the day-to-day active management of a business. Additionally, the “job creation” requirement can be satisfied not only through direct jobs, but also through indirect and induced jobs.
Interestingly, many EB-5 investments involve commercial real estate developments, as both RE developers and EB-5 investors receive significant benefits. From the developer standpoint, EB-5 capital is generally cheaper than standard banking loans. In addition, many EB-5 investors target commercial real estate in light of the resulting job growth from construction work.
Although these are some of the most common features of investor visas, there are other considerations that must be taken into account on a case-by-case basis. Reply to this blog post to schedule a consultation with one of our Attorneys to explore whether you might be eligible for an investor visa.
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