E-2 Investor Visa is the most common visa type for foreign investors. When you decide to invest in the U.S., one of the most important things you should consider is whether you are eligible for E-2 Investor Visa or not. This visa is granted to the entrepreneurs of countries that have a valid Treaty of Trade and Commerce with the U.S.
How Much Should I Invest For an E-2 Investor Visa?
There are no official minimum or maximum investment limit for the E-2 Investor Visa. However, the investment must be substantial and irrevocably committed to the enterprise. The latter means you would be at risk if your business venture is not successful.
“Substantial,” on the other hand, is a more general term. There is no clear explanation of how much “substantial” investment is within the laws. However, this amount is unofficially considered to be $100,000 or more. This does not merely mean investments under $100,000 will be rejected; yet, it is quite challenging to get a visa under this amount. You are also expected to demonstrate you will be enhanced and operate the business. Additionally, the lower the price of the company, the more capital is required for the investment to qualify.
Some proofs you can provide to demonstrate your investment is substantial and irrevocably committed to the enterprise:
– Itemized list of goods and materials purchased for the start-up
– Corresponding financial accounting documentation
– Lease agreement
– Term Sheet, Letter of Intent, or Memorandum of Understanding
– Bill of sale
– Loan and mortgage agreements
– The purchase agreement for business assets
– Valuation analysis of stock
Financing the Investment
Buying an already-established company is another option for E-2 Visa. In that case, the investment is usually equal to the price of the business.
When it comes to financing your investment to buy a business, there are no clear rules about this. It is usually at the Consular Officer’s discretion. Of course, there are some points and tips you should consider. Under normal circumstances, if you are buying a “multi-million dollar company, you may be allowed to finance your investment up to 50% of the total investment amount. If you are buying a smaller business, on the other hand, even 30% financing may be “too much.”
For example; let’s say you want to buy a business for $1,5 million, but you only have $500,000 capital. If you get a loan of $1 million, your E-2 visa application is very likely to be denied. Because the investment amount is not the multi-million dollar, and your financing is almost 66%.
You should also present an active investment plan, which means you should be actively managing your business and working in this business soon after you enter the U.S.
If your investment is more than $500,000, you can also consider applying for EB-5 Investor Green Card.
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