For foreign investors seeking opportunities in the United States, the E-2 Visa and the EB-5 Program are pivotal options. Both are investment-based visas, but they differ significantly. To make an informed decision that aligns with your objectives, it’s essential to grasp the distinctions between these two categories. This article sheds light on the key differences.
The EB-5 Program: The EB-5 program allows foreign investors to transform a $1,000,000 investment into a green card, granting permanent residency. The condition for this residency is the creation of at least ten full-time jobs for U.S. workers within two years after the investor’s admission into the country.
While most investors are required to invest a minimum of $1,000,000, a $500,000 investment suffices if the EB-5 business operates in a Targeted Employment Area (TEA), defined by USCIS as an area of high unemployment or a rural area.
Investors who obtain an EB-5 green card through a regional center can choose to actively manage the business or be passive investors. The job creation requirement is more flexible, allowing for the creation of jobs for “theoretical” U.S. workers rather than direct hires.
The E-2 Visa: The E-2 Treaty Investor Visa has more ambiguous requirements than the EB-5 Program, but these nuances can work to the applicant’s advantage with the guidance of an experienced E-2 Visa attorney.
Unlike the EB-5 program, there is no fixed monetary amount for E-2 Visa qualification; eligibility depends on the type of business where the investment is made. In the past, investors have qualified for the E-2 Visa with investments as low as $25,000. Determining the sufficiency of your investment can be challenging and is best discussed with your immigration lawyer.
While there is no specific job creation quota for U.S. workers under E-2 status, all E-2 businesses must meet the subjective “marginality” requirement. This means the business must not be marginal, as defined by USCIS, which denotes a business that generates only enough profit to support the investor and their family.
The primary distinction between the E-2 Visa and other business-related visas is that only citizens of countries with which the United States maintains treaties of commerce and navigation are eligible for E-2 status.
Unlike the EB-5 program, the E-2 Visa is a nonimmigrant visa and does not lead to a green card. However, E-2 Visa holders can apply for extensions as needed to continue their business operations.
The E-2 Visa imposes strict requirements regarding the investor’s role in the business. Under E-2 status, business owners must actively participate in the development and daily operations of the industry. If you seek passive investment, the E-2 Visa may not be suitable.
To determine the right choice between these two visa categories, contact us at (305) 921-0976, send an email to [email protected]m, or WhatsApp atĀ +1 (305) 921-0976. We can assist you in advancing your business career in one of the world’s most dynamic and exceptional economies. Schedule an initial consultation with us and kick-start your journey.
