The E-2 Visa allows foreign investors and their immediate family to reside in the United States to develop and direct a commercial enterprise. In order to qualify for the E-2 status, all applicants must meet certain criteria, including making a “substantial” investment in an active commercial enterprise in the United States.
While many questions may arise when considering applying for the E-2 visa, one of the major concerns applicants usually have is, “how much should I invest?”
Under the regulations governing the E-2 Visa, applicants must demonstrate that a “substantial” investment of personal funds has been made in a U.S. business. Additionally, the investment must put the investor’s capital “at-risk” and the funds must be irrevocably committed to the development of the business.
Whether an investment qualifies as “substantial” is determined by comparing the proportion of funds invested in the total cost of developing the business to the point it becomes operational and actively involved in commercial activity. Therefore, the E-2 Visa regulations do not set forth a specific minimum investment amount.
Although there is no specific amount of money required to apply for an E-2 Visa, applicants must be able to demonstrate that they have put their personal funds at risk and their money will be irrevocably committed to the success of the business, which is why it is generally difficult to obtain an E-2 Visa with an investment of less than $100,000. However, depending on the type of business, investment amounts vary considerably.
Every year, E-2 Visas are issued for all types of commercial enterprises; convenience stores, property management companies, motels, shooting ranges, building contractors, gift shops, pool cleaning companies, and food franchises, to name a few. However, no matter how similar two businesses may be, when it comes to the E-2 Visa, every business is unique and will require a specific amount of capital to be developed and become operational.
In order to determine how much capital you should invest in an E-2 business, you must first determine whether you are going to buy an existing business or start a new one from scratch.
How Much Should I Invest in an Existing Business?
When an investor applies for the E-2 Visa based on the purchase of an existing U.S. business, the E-2 investment amount is the business purchase price; however, some financing may be permitted. Although the E-2 Visa regulations are not specific in regards to financing, a rough guideline is that it should not be more than 25-30% of the total purchase price for investment between $100,000 and $500,000.
Generally, the greater the purchase price of the business, the greater the percentage of financing permitted. For example, for a business that costs $1 million, around 50% financing would be acceptable under the E-2 Visa regulations.
How Much Should I Invest in a New Business?
If you are applying for an E-2 Visa to develop a new U.S. business, the required investment amount will be the amount of capital necessary to establish the new business and commence operations.
The costs involved in developing a new business in the United States vary widely as there are many different types of businesses and industries. For a new restaurant, for example, you would be expected to have leased the business premises and purchased furnishings and equipment prior to filing your E-2 Visa application. However, for a pool service business, you may only need to lease premises, buy some equipment and a vehicle, and put money in a business account for working capital.
When it comes to starting a business from scratch in the United States under the E-2 visa, the biggest drawback is that the necessary expenditures must be made before submitting the E-2 Visa application.
Obtaining an E-2 Visa for a new business can be more difficult and time-consuming than obtaining an E-2 Visa for the purchase of an existing U.S. business. However, if you are really committed to establishing a new business in the United States, you should not lose hope. The experienced Business Immigration Attorneys at Jurado & Associates, P.A. can and will help you.
Hire the Best E-2 Visa Attorneys in Florida Today!
Contact us today to discuss your needs and goals and let us maximize your chances of getting an E-2 Visa approved! Call us at (305) 921-0976 or send us an email to [email protected] to get started on your application.
