Overview of the Eligibility Requirements

The United States Immigration Laws provide that certain foreign nationals may obtain immigration benefits by actively investing in a productive U.S. business. In certain instances, these investments may lead to permanent residency, and in other instances may result in nonimmigrant "treaty investor" status (E-2) that is renewable indefinitely in two-year increments.

The "green card" investment visas require investments of $500,000 to $1 million and require the investor to maintain at least 10 U.S. workers on the payroll for at least two years. Since these investments are well beyond the reach of most people, this visa is rarely used. The nonimmigrant E-2 visa however can be a very valuable tool for many foreign nationals. These visas:

• Require relatively small investments of $100,000 or less
• Permit the investor freedom to work in almost any type of "active" business, in any part of the U.S. and require only one U.S. worker
• Permit the applicant to bring his or her spouse and any children under 21
• Permit the spouse to obtain work authorization and a social security number to work in the U.S. in virtually any job
• Permit the children to attend public schools without paying outlandish tuition
• Are renewable indefinitely in 2 year increments
• Can ultimately lead to permanent residency

However, not every immigrant can apply and not every investment will qualify. The E-2 category is designated for noncitizens engaged in international investment between the United States (U.S.) and the applicant's home country provided the U.S. has an appropriate treaty relationship with the foreign country. Therefore, the investor must first be a citizen of one of the treaty countries. If you are not a citizen of one of these countries with whom the U.S. has an investment treaty, you cannot apply. Check the list. If your country is on the list, look through the Frequently Asked Questions and take the following quiz to see if this visa is right for you.

Frequently Asked Questions (FAQs)

How much money will I need to invest?

What kinds of businesses are best to invest in?

Should I invest in a new business or purchase an existing business?

Should I be in the U.S. or abroad when I file the treaty investor application?

If I am outside the U.S. will the U.S. consulate issue me a visitor (tourist) visa to come to the U.S. to investigate the possibility of investing in a U.S. business?

What will happen if I invest in a business and the U.S. consul or USCIS denies the visa or change of status?

Does the money have to be mine or can I borrow it from a friend or relative?

Can more than one applicant apply for the same business?

Will the investment allow me to obtain a green card?

What will happen to my immigration status if the business fails?

How do I find a business to invest in?

How do I get started?

Answers

Q. How much money will I need to invest?

A. The rules require that an investor make a "substantial investment" but does not define what is meant by "substantial." In practice, both USCIS and the U.S. State Department (through its consulates) approve investments of between $75,000 to $100.000 if the investment is sufficient to establish or maintain a viable enterprise.? This means that an investment of $75,000 might be sufficient for a grocery store or small convenience store, but insufficient to start up a construction company. Also note that it is not necessary to invest money. An investment of inventory can be sufficient where, for example, you are setting up a retail store to sell goods manufactured abroad.

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Q. What kinds of businesses are best to invest in?

A. Although there are no "good businesses" or "bad businesses" the rules require that the investment be in an "active" business that creates at least one job for a U.S. worker within five years.? This means that the money cannot be "passively" invested in the stock market or in unproductive real estate, but it can be invested in a small business such as a convenience store, travel agency, delicatessen, grocery, bakery, Laundromat, or the sale of retail or wholesale merchandise.

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Q. Should I invest in a new business or purchase an existing business?

A. Either business will qualify as long as it is viable and will provide employment for at least one U.S. worker.? Often it is easier to buy an existing business simply because the business is already viable and thus it will be easier to convince USCIS or the U.S. consulate that the business will continue to provide employment for a U.S. worker. A new business may raise questions as to whether the investment is sufficient to create a viable business.

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Q. Should I be in the U.S. or abroad when I file the treaty investor application?

A. If you are in the U.S. in legal status, you can apply for a change of status to treaty investor status. If you leave the U.S. however, you must re-apply for a new treaty investor visa at the U.S. consulate and the processing times at the consulate may take several months. For this reason, many investors prefer to apply initially at the consulate, but it is not necessary.

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Q. If I am outside the U.S. will the U.S. consulate issue me a visitor?s (B1/B2) visa to come to the U.S. to investigate the possibility of investing in a U.S. business?

A. There is no special visa that allows you to come to the U.S. to investigate investment opportunities. The consul may, however, issue you a visitor ("B-1") visa to come to the U.S. to take the preliminary steps necessary to set up the enterprise, such as the opening of bank accounts, setting up the corporation, signing of contracts, entering into leases and similar activities. It cannot be used to actively manage the business, an activity that USCIS will consider as "employment" in violation of your status. The consul will ask to see concrete evidence of your intention to invest, including the transfer of funds to the U.S. and correspondence with a potential business seller or broker or law firm such as ours to show your active interest.

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Q. What will happen if I invest in a business and the U.S. consul or U.S.C.I.S. denies the visa or change of status?

A. When you invest through a reliable firm such as Mitchell C. Zwaik & Associates, the investment can be placed in an escrow account until the visa or change of status is approved. This means, that although you have entered into a contract to purchase a business, we hold onto the money in a special account until your application is approved. If the application is denied, the invested money is returned to you.

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Q. Does the money have to be mine or can I borrow it from a friend or relative?

A. The assets you invest must belong to you or the company you work for (if your company is making the investment.) Money loaned to you by someone else cannot usually be used to qualify for a treaty investment unless it is a loan secured by a lien or mortgage on property that you already own. The loan cannot be secured by a lien or mortgage on the business you are buying.? This means that you can borrow $100,000 to buy a convenience store in the U.S. and secure it with a mortgage on your home in London, but you cannot buy a convenience store in the U.S. for $100,000 by putting $10,000 down and paying off the balance of $90,000 through a loan that is secured by a lien on the convenience store itself.

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Q. Can more than one applicant apply for the same business?

A. Sometimes, but only if the investment is through a foreign company and the business is large enough to support two or more managers or executives. If, for example, a large manufacturing business in Turkey will be investing $500,000 to open a manufacturing facility in the U.S., the company may be able to justify sending two or more executives to the U.S. to manage the operation. If you are buying a small convenience store, the investor must own at least 51% of the business and must be coming to the U.S. to manage the business. As a result, the investment will not support two people because two people cannot independently control one business.

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Q. Will the investment allow me to obtain a green card?

A. Possibly. Generally, we suggest that the business in the U.S. be affiliated with a business you may have abroad as a way of making it easier to obtain permanent residency in the U.S. Alternatively, you or your spouse may be sponsored by a different employer in the U.S. under a program known as labor certification. This is a complicated procedure and one that you should discuss at length with an immigration lawyer. It is important to understand at the outset that a treaty investor visa does not automatically become a green card. It can, however, function like a green card since it is renewable indefinitely.

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Q. What will happen to my immigration status if the business fails?

A. U.S.C.I.S. does not follow up on the success of your business on an ongoing basis. You will have to renew your status every two years and at that time you will have to show USCIS that your business is viable. You will need to submit tax returns, payroll records, and similar business records. If your business is not viable, your extension will be denied. You can, however, change businesses any time you choose, if you get the approval of USCIS and the new business would itself qualify for treaty investor status.

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Q. How do I find a business to invest in?

A. We can assist you through a related investment company called ImmVest America. ImmVest America can help you locate virtually any kind of business anywhere in the United States you would like to live. They will need to know the kind of business you are interested in, the amount of money you wish to invest, where you want to live and when you want to begin. Also, when you work with ImmVest America, we guarantee their work and your investment.

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Q. How do I get started?

A. We suggest you begin by taking the Eligibility Quiz or simply contact us now!