Investor Visas Explained: E-1, E-2, and EB-5 Pathways
Investor visas offer foreign investors an excellent opportunity to establish businesses, generate employment, and positively impact the United States economy. The three primary options for investors include the E-1, E-2, and EB-5 Visas. Each of these visas has specific eligibility criteria, investment amounts, and advantages. However, it is important to understand the differences between these options, as this can help identify the visa that best fits your goals.
E-1 Visa: Treaty Trader Visa
The E-1 Visa is for foreign nationals from nations with a trade treaty with the United States. It permits individuals to enter the U.S. to participate in significant trade activities between their home country and the United States.
Key requirements:
- The applicant must be a citizen of a treaty country.
- The trade must be substantial and continuous.
- More than 50% of the international trade conducted by the business must be between the U.S. and the applicant’s home country.
- The applicant must be coming to the U.S. solely to conduct trade on behalf of the enterprise.
Industries commonly qualifying under E-1 include technology, finance, and import/export businesses. The visa is initially granted for up to two years but can be extended indefinitely as long as trade activity continues.
E-2 Visa: Treaty Investor Visa
The E-2 Visa is a favored option for foreign entrepreneurs aiming to invest in a U.S. business. Similar to the E-1 visa, it is accessible only to nationals from treaty countries. This visa permits investors to establish or acquire a business in the U.S. and manage it actively.
Some primary requirements for an E-2 Visa include:
- The applicant must be a citizen of a treaty country.
- The investment must be substantial, though no minimum amount is formally set.
- The investment must be in an active, for-profit business (passive investments, such as stocks or real estate, do not qualify).
- The investor must have control of the funds and be at risk of losing the investment if the business fails.
The E-2 visa is granted for up to two years and can be renewed indefinitely as long as the business remains operational and meets visa requirements. While this visa does not lead directly to a green card, E-2 investors can explore other pathways to permanent residency.
EB-5 Visa: Immigrant Investor Program
Unlike the E-1 and E-2 Visas, which are temporary, the EB-5 Visa offers a direct path to U.S. permanent residency (a Green Card). This program is intended for investors who can make a significant capital investment in a U.S. business that creates jobs.
The main requirements:
- The applicant is required to invest a minimum of $1.05 million in a new or existing business. However, if the investment occurs in a targeted employment area (TEA), which includes rural areas or regions with high unemployment rates, the minimum investment reduces to $ 800,000.
- The investment needs to create or maintain a minimum of ten full-time jobs for U.S. workers.
- The investor must be actively involved in managing or overseeing the business.
The EB-5 process takes longer than the E-1 or E-2 Visas, but it can result in permanent residency for the investor, their spouse, and unmarried children under 21. After holding a Green Card for five years, investors may apply for U.S. citizenship.
How Coleman Jackson, P.C. Can Help
Choosing the appropriate investor visa depends on factors such as nationality, investment amount, and long-term immigration goals. Additionally, navigating investor visa options can be complex, and selecting the wrong pathway may result in delays or denials.
At Coleman Jackson, P.C., we assist investors with understanding visa requirements, preparing applications, and ensuring compliance with U.S. immigration laws. Whether you’re considering an E-1, E-2, or EB-5 Visa, our team is here to guide you through the process and help you achieve your business and immigration goals. Contact us today for a consultation.
This law blog is written by the Tax | Business | Immigration Law Firm of Coleman Jackson, P.C. for educational purposes; it does not create an attorney-client relationship between this law firm and its reader. You should consult with legal counsel in your geographical area with respect to any legal issues impacting you, your family or business.
