The E-2 visa is a popular option for investors looking to immigrate to the United States. To qualify for the E-2 visa, the applicant must make a substantial investment in a U.S. business. However, determining what qualifies as a substantial investment can be tricky. In this article, we will explore key examples of E-2 visa investments and the factors that lead to a successful visa application.
The E-2 visa has multiple advantages for investors. There is no minimum investment amount, it allows you to manage your own business, and there is no cap on the number of visas issued each year. However, the visa does require that your investment is substantial enough to generate meaningful economic impact. Applicants must also prove they have the funds and plans to develop and direct the investment.
When examining E-2 visa investment examples, the most common are purchasing an existing business or franchise, or starting a new commercial enterprise. The investment needs to be adequate to ensure the business’s financial viability. For example, investing $100,000 in a new restaurant in a competitive market may not be considered substantial enough given the high costs of starting that business.
Other key factors in determining a qualifying E-2 investment include the total invested capital amount relative to the type of business, the financial health and growth prospects of the business, and the number of jobs created. Thorough documentation of your investment and business plans is essential for visa approval.
In conclusion, smart E-2 visa applicants conduct research to determine investment examples that will satisfy substantiality requirements for their particular industry and business goals. With the right evidence of adequate capital and a viable business plan, the E-2 offers investors a pathway to direct their own U.S. operations.
Investing in an existing business as E-2 visa strategy
Purchasing an existing business can be a lower-risk E-2 visa investment strategy compared to starting from scratch. Applicants must invest enough capital relative to that business and industry to meet E-2 substantiality requirements.
For example, an investor purchased a small local pizza restaurant for $150,000 that had been operating for 10 years. This met E-2 investment thresholds as the purchase price was more than 100% of the business’s value. It also allowed the investor to immediately take over active management of the business upon E-2 approval, with an existing customer base and operations.
However, buying a franchise of an established national chain may require a larger investment amount. For a McDonald’s franchise, the total startup cost ranges from $1 million to $2.2 million. This franchise fee buys the rights to use the McDonald’s brand and system. As a major franchise, the substantial investment helps you gain the benefits of an already successful business model.
In the case of taking over an existing business, it is important to verify its financials and growth potential. Making minimal changes to a declining business may not satisfy E-2 criteria. Your business plan should demonstrate how you will improve operations and profitability.
Starting a new commercial enterprise with E-2 visa
Many E-2 investors choose to start a new U.S. business from the ground up. This involves more risk and planning versus buying an existing company, but allows the investor to build their own concept.
For example, an investor started a Chinese restaurant in Los Angeles with $350,000 in capital. He invested $150,000 to buy and renovate the restaurant space and $200,000 for equipment, supplies, inventory and operating expenses.
With detailed financial projections and market research, he demonstrated this would sufficiently fund a high-quality restaurant in that area. He also hired a chef and managers with local experience to handle daily operations. This evidence of adequate capital and a viable business plan was approved for the E-2.
New franchise businesses are another common E-2 investment example. The franchise fee tends to be substantial, ensuring adequate capital to start and maintain that franchise. The proven franchise business model lowers your risk as an investor. For instance, opening a new Hampton Inn with an investment of $5 million or more in a good hotel market would likely qualify you for the visa.
Job creation requirements for E-2 visa eligibility
In addition to the substantial investment, E-2 applicants must demonstrate their new or existing business will generate jobs for U.S. workers. This is a key element of showing your investment will benefit the American economy.
The E-2 does not specify a minimum number of required jobs. However, you should create enough jobs relative to the size and scope of your investment. Opening a large resort hotel with just a few positions would likely not meet E-2 job creation requirements, despite a major capital investment.
Jobs created can include direct jobs at your business such as employees and contractors. Indirect jobs like suppliers to your business can also count. It’s important to accurately document your staffing plans and job creation projections in your E-2 application.
Maintaining E-2 visa status with ongoing investments
After receiving E-2 approval, investors must continue to develop and direct the business to maintain visa status. This may require additional investments to grow and support ongoing operations.
For example, the Chinese restaurant investor from earlier needs to replace worn kitchen equipment and renovate the dining room after several years in business. He invested another $50,000 to upgrade systems and decor to keep attracting customers. These supplemental investments helped satisfy E-2 requirements.
E-2 investors should have a plan to make further investments in future equipment, inventory, marketing, staff, facilities, or other business needs. Showing sustained commitment to actively developing your investment is key to maintaining your visa status long-term.
The E-2 visa offers investors a path to U.S. residency by directing substantial capital into American businesses. Examples like buying an existing company, starting a new enterprise, meeting job creation benchmarks, and planning future investments can lead to a successful E-2 application.