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E2 Visa versus EB5 Visa United States

E2 Visa vs EB-5 Visa: Understanding Investment Visas

Updated: 10 September 2024

Are you planning to invest in businesses in the USA? You will have different visa options, which may confuse you. 

Investment in a business is a big deal that requires you to consider all the risks and chances. Obtaining a visa through investment may be quite attractive to you. If so, you’ll need to learn all the details about your visa options and even get guidance throughout the process.

Here, we will examine two visa types related to investment, namely, E2 Visa and EB-5 Visa. These visas directly address investors, and they come with their specific advantages. However, they are definitely not the same thing.

Now, let’s move on to 

  • the differences between E2 Visa vs EB-5,
  • the details of the Investment Green Card, its benefits,
  • requirements to get an Investment Green Card and more.

Non-immigrant vs. Immigrant Visa: Overview

The E2 non-immigrant Visa:

  • With an E2 Visa, you can live and work in the US for 2 years so that you can grow your business. Then, you will need to extend your visa.
  • The E2 Visa has a simple main criteria: an investment in an existing business or starting your own business.
  • You can renew your visa multiple times as long as you meet the visa requirements.
  • Please notice that the E2 Visa is a non-immigrant visa, and it does not directly enable you to get a Green Card.

The EB-5 Immigrant Visa:

  • Unlike the E2, the EB-5 Visa is an immigrant visa. 
  • Investors who make a significant investment in a US business that creates or maintains at least 10 full-time jobs for US workers. 
  • The EB-5 Immigrant Visa is a way to get a Green Card and permanent residence permit, which is also permanent resident status.

Nationality Requirement for EB-5 and E2 Visas

The citizens of certain countries that have an agreement with the US can apply for the E2 Visa. 

However, the EB-5 Visa does not require a specific citizenship. This immigrant visa is open to investors from any country. 

This makes the EB-5 Visa an attractive option for global investors who want to immigrate to the United States.

Minimum Investment Amounts

There is no minimum investment amount for the E2 Visa. The amount may vary depending on the nature and requirements of the business enterprise. But, sure, it can’t be just a symbolic amount. You will need to invest enough amount to enable the business to operate successfully. 

If you are interested in getting an E2, you must invest an amount to use actively to grow the business. You cannot show cash in the bank or land to get an E2 visa.

However, to give you a more solid idea, investments range from $100,000 to $200,000, depending on the nature of the business and industry standards.

The EB-5 Visa requires a minimum investment amount. So, if you’re planning to get an EB-5 Visa, you are supposed to invest $1,050,000 in a business in the USA. If you invest in a Targeted Employment Area (TEA) that is rural or has high unemployment, the minimum investment amount decreases to $800,000.

Citizenship and Immigration Services (USCIS) determines the minimum investment amount. The investment must also create or maintain at least 10 full-time jobs for US workers. It would be better to be familiar with the job creation requirement during this process.

Investment Green Card: Explained

You can get an Investment Green Card if you have an EB-5 Visa and meet the requirements:

  • Make the necessary investment in a commercial enterprise in the United States; and
  • Plan to create or preserve 10 permanent full-time jobs for qualified U.S. workers.

With a Green Card means you can work and stay in the USA legally. Let’s see some details about the benefits of getting an investment Green card.

What are the Benefits of Obtaining a Green Card?

Obtaining an investment Green Card offers many benefits for investors and their families.

Permanent Residence and Citizenship

Once you qualify for permanent residence, you can live and work in the US indefinitely. The EB-5 immigrant Visa paves the way for permanent citizenship for investors who meet the requirements.

However, keep in mind that if you apply for the EB-5 Visa and get it, you will first receive a “Conditional Green Card.” This means you will have the right to stay in the US legally for up to two years. At the end of these two years, you can apply for and receive a Green Card valid for 10 years.

As a Green Card holder, you can apply for US citizenship after living in the US permanently for five years.

Immediate Family Members

Your spouse and unmarried children under 21 will also benefit from the Green card. Family members can also obtain Green cards, allowing them to live, work, and study in the United States alongside the primary visa holder.

Once children turn 21, they must re-apply for a visa.

Unrestricted Business Activities

The EB-5 Immigrant Visa is unlike some other visa categories since it allows you to engage in unrestricted business activities. However, what does it actually mean? You can start and operate any business in the US with no ties to specific employment and business types. 

Moreover, you can be free to work by yourself in the business you are the founder of or the one you took over. It provides ideal flexibility, allowing entrepreneurs and business owners to expand their ventures in the US market.

Freedom of Travel

It is a known fact that with an Investment Green Card, you can have more travel freedom. This means that you will be able to leave and re-enter the United States without needing to obtain any extra visas or permits. This freedom is beneficial for global investors, especially those who need to travel frequently.

Access to a Stable US Economy

When you have a green investment card, the difference comes forward when operating in a strong and stable US economy. Having this opportunity, you can benefit from the economic environment in one of the world’s largest and most dynamic markets.

With the EB-5 Visa, you gain access to a strong and stable economy for financial growth.

Brings a High Quality of Life

You can open doors to a high quality of life in a stable US economy through the Investment Green Card. Whether it is world-class education and healthcare systems or diverse cultural experiences, you can benefit from the wealth of advantages the US offers for you as the principal investor and for your family.

Difference Between EB 5 Immigrant Investor Visa and E2 Visa

E2 and EB-5 Visas are two different options that you might chose if you want to live and work in the USA. Having both various benefits and requirements, it is essential to get to know the difference between them.

E2 Visa: What to Know

If you are from one of the countries with an E2 treaty with the United States and you are an investor or entrepreneur, you can consider E2 Visa. It is also called as a non-immigrant visa allowing you to enter and work in the US, based on an investment you make in a US business.

  • Purpose and Eligibility: The E2 Visa aims to attract investors to the US. It requires investors to hold a passport from an eligible country and invest a substantial amount in a US business.
  • Investment: While there is no fixed minimum investment, it generally ranges from $100,000 to $200,000. The investment must guarantee the business’s success. Additionally, applicants must be actively involved in the business’s management. 
  • Dependents: Spouses and unmarried children under 21 can accompany the primary visa holder. Spouses can apply for work permits, and children can attend school.

EB-5 Visa: What to Know

The EB-5 Visa offers permanent residency for investors if you contribute significantly to the US economy.

  • Purpose and Eligibility: The EB-5 Visa is for investors who can make a substantial financial commitment and create jobs for US workers. Remember that It is open to investors from any country.
  • Investment and Job Creation Requirement: To qualify, you need to invest $1,050,000 million, or $800,000, in a targeted employment area (TEA). It is important to know that the investment must create or preserve at least 10 full-time jobs for US workers.
  • Benefits for Family: You can get a Green Card, and immediate family members, including spouses and unmarried children under 21, can also obtain Green Cards. This immigrant visa offers the opportunity for permanent residency and, eventually, US citizenship.

Each visa provides unique benefits and opportunities for those looking to invest in the United States.

In Summary

Remember to carefully consider your investment goals, including investment funds and eligibility. When you are in the process of choosing between the E2 Visa and the EB-5 Visa, your goals and financial circumstances matter.

The E2 Visa offers a flexible way for investors from treaty countries to start businesses in the US, though it doesn’t lead directly to permanent residency. For instance, if you are not considering lawful permanent residence, the flexibility of the E2 visa may be the ideal option for you.

In contrast, the EB-5 Visa provides a clear way to a Green Card and permanent residency, making it ideal if you are seeking long-term stability in the US.

Both visas offer unique benefits that can significantly impact your investment journey. Whether you are looking to build and expand businesses or permanent residency, each option presents valuable opportunities.

We hope you enjoyed the article.

Can I convert my E2 visa to EB-5?

Yes, you can convert your E2 Visa to an EB-5 Visa under certain conditions. However, it requires careful planning and evaluation. 

Investors who initially come to the US on an E2 Visa and later decide to pursue permanent residence through the EB-5 program must meet the EB-5 Visa eligibility criteria and the investment requirements we mentioned above.

Can an E2 visa apply for a Green card?

Since the E2 is a Non-Immigrant Visa, it does not provide permanent residence or a Green card. However, you can apply for a Green card through alternative means, although not directly with the E2. For example, you can convert an E2 Visa into an EB-5 visa or through EB-2 employer sponsorship, etc. 

However, you should analyze each method carefully so that you can find the most suitable path for you.

What are the advantages and disadvantages of an EB-5 visa?

The EB-5 Visa allows investors and their immediate family members to permanent residence and then apply for citizenship in the US. It also allows investors to engage in unlimited trading activities.

However, we can consider the high minimum investment funds requirements for the EB-5 visa as a disadvantage. Since it is a complex process, investors should also consider the risk of investment loss during the EB-5 application process.

How much can I invest in EB-5 in 2024?

Investment amounts are determined by the US Citizenship and Immigration Services (USCIS). 

The minimum investment amount for foreign investors for the EB-5 Visa in 2024 is $1,050,000. However, investments in targeted employment areas (TEAs) (areas with high unemployment rates or certain rural areas) are capped at $800,000. 

It should also be noted that amounts may change for any foreign national. It may also help to be aware of the investment capital.

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