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How can E-2 investment capital qualify for EB-5?

If I invest in a business for an E-2 visa and then apply for EB-5, can the funds I invest initially for E-2 purpose also be counted toward the $1 million requirement for a non-TEA EB-5 direct investment? How should I convert the E-2 business to qualify for EB-5? What are some of the key changes that I need to make?

Answers

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    It is generally acceptable to convert an E-2 investment to EB-5. It appears your plan will fit right in to direct EB-5 investment. Advisably, contact an EB-5 attorney to discuss various steps including but not limited to, putting together a business plan, etc.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    E-2 funds/investments that are already invested can be used in applying for EB-5, provided all required elements of EB-5 processing are present (i.e., requisite job creation, lawful source of funds, funds are at-risk, etc.). You just need to document this when submitting for the EB-5.

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    Charles Foster

    Immigration Attorney
    Answered on

    In theory, yes, your funds that you invested initially to obtain an E-2 Treaty Trader visa could be used for EB-5 purposes. Those funds are yours and you could liquidate your E-2 Treaty Trader project and use those funds for EB-5 purposes. However, in doing so you could lose your eligibility for your current E-2 status. Since you are making a $1 Million investment in a non-TEA EB-5 direct investment, you would have to show a lawful source of funds and a part of that would be the funds you realized from your E-2 project, which again presumably would require you to liquidate same.

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    Irina Rostova

    Immigration Attorney
    Answered on

    The investment contribution you made into the E2 business can be utilized for the EB-5 visa as well. You do not need to make changes, but need to show a lawful source of the invested funds and demonstrate that the investment has led to the necessary job creation.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    You need to work with an experienced EB-5 corporate attorney to structure your E-2 business so that it could be converted to be EB-5 compliant. Too many people will do E-2 business without foresight and expert, professional help and then were not able to later convert so that they could get the immigrant/permanent residency benefit.

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    Dale Schwartz

    Immigration Attorney
    Answered on

    Yes. You can count the money you put in the E-2 investment toward the capital required for the EB-5. You must make sure you are hiring the correct number of employees. There is nothing to convert. It is the same business.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    This is done frequently. Same rules as if you filed directly for the EB-5 you can count the monies you put into the E-2 provided you can show lawful source of funds and that 10 new jobs were created.

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    Olga V Aksenenko, Esq

    Immigration Attorney
    Answered on

    If you have received an E-2 visa - you cannot just convert it into EB-5 if you continue to use your E-2 visa. E-2 visa and EB-5 green card have different requirements, and it is highly recommended to research and understand them as a starting point. EB-5 direct project will obviously require more significant investment, clear business and economic plan & analysis and more jobs creation. It is recommended to work with an attorney on this.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    The funds you invested for E-2 purposes can be used to qualify for EB-5 as well. If you are planning to do an E-2 investment and then convert it to EB-5, it would be wise to consult with an EB-5 immigration attorney who can counsel you on how to make your investment qualify for both. That usually means proving the lawful source of funds and path of funds using the higher EB-5 standard. In addition, your E-2 business plan should be EB-5 compliant, or at least have the flexibility to meet the Matter of Ho requirements for an EB-5 business plan once it is time to do the conversion (adjustment of status from E-2 to EB-5). The business plan will also have a timeline to show that your new commercial enterprise will create at least ten full-time positions for qualifying U.S. workers within two years (of your EB-5).

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    The business needs to meet all EB-5 requirements; if your investment has created less than 10 jobs to date, you will need a Matter of Ho compliant business plan. Your initial (E2) investment needs to be sourced to meet EB-5 standards.

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    Mark AM Catam, Esq

    Immigration Attorney
    Answered on

    This requires careful planning and strategy at the very onset. Yes, the funds you initially invested in your E-2 enterprise can be counted, granted you will use the same E-2 entity as your direct EB-5 entity.

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