Do I Have a Substantial Amount to Invest?

e2 investor

Do I Have a Substantial Amount to Invest?

The E-2 visa, unlike most visa programs, has many requirements that are not as concrete as other visa programs. Once such requirement is to be able to provide proof of a substantial amount of capital to invest in the new business venture or existing enterprise. Whereas in the EB-5 program, which sets specific capital amounts of 1 million USD or $500,000 USD depending on the program, of funds required to be invested, the E-2 visa does not define a specific investment amount that must be provided in order to obtain the visa.

 So what does that mean for the investor?

In essence, it makes it may be an easier option for an investor who does not have the magnitude of funds to obtain the EB-5 visa, but does have personal, legal, discretionary income that they are willing to invest within a U.S. business venture. The other requirements pertaining to the E-2 visa program that may be of interest are:

Be seeking to enter the United States solely to develop and direct the investment enterprise.

  • This means that the investor plans to play an active role in the business. This is a great option for budding entrepreneurs who want to pursue their dreams of opening their own business within the United States. With this option, the investor must hold at least 50% ownership or operational control within the company.

Having an enterprise that is not marginal.

  • As stated within the rules and regulations for the E-2 visa on the website, the purpose of the E-2 visa is to invest within a business that will not only produce benefits for you, the investor, but also stimulate the US economy. That being said, having a business that only produces marginal profits for the investor will not meet the qualifications for the E-2 visa. Investors must show that the enterprise in which they plan to develop or purchase will be able to provide more than enough income to support themselves, their families and the entire enterprise. For a new investor with limited funding, this may seem daunting, however, there is a clause that allows new enterprises the opportunity to show that they will meet this capacity within 5 years of obtaining the E-2 visa.

In all, not having unlimited funding should not deter you from investing the E-2 visa program. With the onset of more relaxed qualifications, this investment option may be the best bet for your new U.S. enterprise.

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