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Greetings!
Perhaps you have heard you can get a green card with an investment of at least $500,000 in a U.S. business. But, frankly, that's just too much money. You would rather invest much less money into a pizza parlor.
What are your options? One possibility is the E-2 Treaty Investor Visa. But who qualifies for the E-2 visa?
Below are some of the E-2 requirements.
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Must be a treaty national
The foreign national must be a citizen of a country that has signed a bilateral treaty of commerce and navigation with the United States. Click here for a list of countries whose citizens are eligible to apply for E-2 visas.
U.S. business must be at least 50% owned by treaty nationals
The foreign national investor need not be an owner, but he or she can be. With respect to ownership, it is simply required to show that any nationals of the treaty country, who are not also either citizens or lawful permanent residents of the United States, own at least 50% of the company.
The foreign national must have invested or be actively in the process of investing in a real and operating commercial enterprise.
For E-2 purposes, investment involves risk. Therefore, the foreign national must invest personal funds that are subject to partial or total loss if the investment fails.
A real and operating commercial enterprise is a for-profit business that provides services or goods.
The investment must be "substantial"
The million dollar question is "how much is substantial?" Well, it's not necessarily $1 million. In fact, there is no bright-line rule and the government will apply what's known as the "proportionality principle" to make the determination. The proportionality principle requires comparing the amount of funds invested with the amount required to purchase an existing business or to render a new business operational. For example, let's say Italian Investor puts $100,000 into a pizza parlor. If an investment of $1 million is required to start the business, then the invested funds only constitute 10% and may not be deemed "substantial." However, if the total required investment in the pizza parlor is $100,000, then Italian Investor has put forth 100% of the required investment, which may be considered "substantial."
Must be more than just a "marginal" investment
The investment must be one that generates enough income to provide more than just a minimal living for the investor and his/her family, or one that has the present or future capacity to make a significant economic contribution. So, for example, if Italian Investor generates enough income to provide for his family and to donate several hundreds of thousands of dollars to charity, then it would likely be more than "marginal." Similarly, if Italian Investor employs several U.S. citizens and/or lawful permanent residents, then he would have a good argument the investment is not marginal because it is making a significant economic contribution.
Foreign national must be in a position to "develop and direct" the enterprise
Through ownership of the company, or by other means, the foreign national must show he or she is qualified to develop and direct the business enterprise.
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In addition to the above requirements, the E-2 investor must state his or her intention to depart the U.S. upon termination of E-2 status.
Some employees of qualifying E-2 companies are also eligible for E-2 status if they are destined for an executive/supervisor position or possess "essential skills."
Qualified treaty investors and employees will be allowed a maximum initial stay of two years. They can request extension of stay in increments of up to two years each. There is no maximum limit to the number of extensions an E-2 nonimmigrant may be granted.
Treaty investors and employees may be accompanied or followed to join by spouses and unmarried children who are under 21 years of age. Their nationalities need not be the same as the treaty investor or employee. These family members may seek E-2 nonimmigrant classification as dependents and, if approved, generally will be granted the same period of stay as the principal E-2 investor.
Contact Jacob L. Ratzan, P.A. with questions regarding E-2 investor visas, and for any other immigration matters.
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