+1-800-997-1228
Questions & Answers

What restrictions are there in changing from E-2 to EB-5?

Can I buy one motel for $400,000 and get an E-2 treaty investor visa, and then add another motel for $450,000 to the same LLC owning the first motel? Then, with the two motels owned by the LLC, can I have them together create 10 jobs so I can get an EB-5 visa? Are there any restrictions in changing from E-2 to EB-5?

Answers

  • Avatar

    Salvatore Picataggio

    Immigration Attorney
    Answered on

    It depends on the details and how we present the investment to USCIS, but it could be possible. Having an EB-5 immigration attorney represent you is essential.

  • Avatar

    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    This arrangement may not meet the requirements of EB-5 but it will meet E-2. Instead of breaking up the investments, consider the possibility of combining both investments to meet the EB-5 requirements. Advisably, consult an EB-5 attorney to plan the best strategy based on your idea.

  • Avatar

    Julia Roussinova

    Immigration Attorney
    Answered on

    This may not qualify if you are buying an existing business and not creating new jobs with your investment. Please consult an experienced EB-5 attorney to plan out your E-2 to EB-5 transition if you wish to have the E-2 investment qualify for EB-5 in the future.

  • Avatar

    Michael A Harris

    Immigration Attorney
    Answered on

    Yes, this may be feasible if you are creating new jobs, and the pattern you describe has the LLC wholly owning the underlying LLCs (if any) that own the hotels. There are some restrictions - or rather - dissimilarities between the E-2 and EB-5 visas. One, for example, would be that the E-2 visa requires that the principal investor seeking E-2 Treaty Investor status own 50 percent or more of the enterprise. In contrast, the EB-5 program does not require the same type of percentage of ownership as the E-2. To learn more about the differences and how you can seek to convert from the E-2 visa to an EB-5, you should consult with an immigration law specialist.

  • Avatar

    Lynne Feldman

    Immigration Attorney
    Answered on

    No restrictions on changing from E-2 to EB-5; we would have to analyze the two motel scenarios to see if it would work as they likely would be two separate companies, but perhaps you can include under an umbrella LLC.

  • Avatar

    BoBi Ahn

    Immigration Attorney
    Answered on

    1) An investor in E-2 status may file for EB-5 immigrant investor processing; 2) In order for you to qualify, you can invest the minimum requisite capital in a single entity that operates multiple commercial enterprises, which create the requisite jobs, etc.; however, I would be cautious here where both the amounts you invest are below the minimum requisite capital (if motel is located in the TEA minimum of $500,000, or else a minimum of $1 million), and you are not investing the minimum requisite capital in one transaction. In the scenario you mentioned, also it would be difficult to show the requisite 10 jobs created by the minimum invested capital, since they would have occurred as two separate investments, etc.

  • Avatar

    Charles Foster

    Immigration Attorney
    Answered on

    Yes, it is possible to obtain an E-2 visa based upon the first investment and increase that investment through the same entity to show that you have invested more than $500,000 if the properties are located in a Targeted Economic Area (TEA) and create together more than 10 jobs for U.S. workers.

  • Avatar

    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    There are numerous issues associated with converting an E-2 to an EB-5. If you buy a motel for $400,000, and another for $450,000, you are not creating new jobs you have to start the businesses from ground up and hire new employees. In the examples you give, you are not creating 10 new jobs as a result of your investment, unless they are troubled businesses.

Add your comment

Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.