Smart Strategies for
Turning the E-2 and
Other Non-Immigrant
Visas Into EB-5
Investments
How to prepare for a future EB-5 visa application
when structuring the E-2 investment amount,
business plan and source of funds requirements.
By Fredrick W. Voigtmann
M
any attorneys’ clients, who are here on E-2, H-1B or L-1 working visas, are
looking to get permanent resident status through an EB-5 investment.
How can they best “convert” to EB-5 status from these non-immigrant visa (NIV)
statuses, with EB-5 as an alternative strategy for existing clients or with NIV as
an untapped market for EB-5 project developers and others?
E-2 AS A PRECURSOR TO EB-5
An E-2 nonimmigrant treaty investor is a citizen of a country, which has an
investment treaty in place with the United States providing reciprocal benefits to
investors from each country.
An E-2 visa does not offer permanent residency and does not automatically
grant any right to apply for permanent residency, but there are some important
points to consider about adjusting status or otherwise seeking permanent
resident status through an investment.
INVESTMENT AMOUNT
The E-2 treaty investor visa regulations do not specify a minimum investment
amount. Rather, they require a “substantial” investment. Substantiality employs
a proportionality test to compare the amount of the E-2 investor’s investment
to the total cost of establishing a new enterprise or purchasing an existing
enterprise. The closer the investment amount gets to 100 percent of the
required capital, the more likely it will be considered substantial. Most E-2
investments are at least $100,000, but some are approved at lower amounts.
The EB-5 minimum investment amounts were $500,000 for a targeted
employment area (TEA) and $1 million for non-TEA in April, 2018. The location
of the new commercial enterprise for TEA designation purposes is determined
by where it is principally doing business.
EB5INVESTORS.COM
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