E-2 Visa: Understanding the Investment Requirement under 9 FAM 402.9-6(B)

Introduction

The E-2 visa is a nonimmigrant visa category that allows foreign nationals to live and work in the United States by investing a substantial amount of money in a U.S. enterprise.

One of the critical requirements for obtaining an E-2 visa is demonstrating that the applicant has made or is actively in the process of making a substantial investment. In this article, we will explore the key aspects of 9 FAM 402.9-6(B), shedding light on what constitutes a qualifying investment, the required investment amount, and the importance of showing active investment efforts.

Investment Requirement

According to 9 FAM 402.9-6(B), an E-2 visa applicant must have made a substantial investment or be in the process of investing a significant amount of capital in a bona fide enterprise in the United States. The investment must be at risk, meaning there is a real potential for the investor to lose the invested capital if the business does not succeed.

Qualifying Investment: A qualifying investment refers to the funds or assets that the investor contributes to the enterprise. It typically includes capital, equipment, inventory, cash, and other tangible assets. The investment must be made with the intention of generating a profit and actively participating in the business’s management.

Required Investment Amount: While there is no fixed minimum investment amount specified under 9 FAM 402.9-6(B), the investment must be substantial and sufficient to ensure the business’s viability. Factors considered when determining the adequacy of the investment include the nature of the business, its size, and the industry standards. In general, the investment should be proportionate to the total cost of purchasing or establishing the enterprise.

Active Investment Efforts: To satisfy the investment requirement, the applicant must demonstrate that they have either already invested the required amount or are actively in the process of investing. This includes providing evidence of financial transactions, bank statements, contracts, and other supporting documents that show the commitment to the investment. Additionally, the applicant should present a comprehensive business plan outlining the investment timeline and how the funds will be utilized to develop and grow the enterprise.

Documenting the Investment: It is crucial for E-2 visa applicants to maintain thorough documentation of their investment activities. This includes keeping records of all financial transactions, receipts, contracts, and bank statements. Documentary evidence should clearly demonstrate the source and path of the invested funds, highlighting their lawful origin.

Key Takeaways

Introduction:

• The E-2 visa allows foreign nationals to live in the United States by investing in a US business enterprise.
• Key requirement: Demonstrate a substantial investment or active investment process.
• 9 FAM 402.9-6(B) provides guidelines for the investment requirement.

Understanding the Investment Requirement:

• E-2 visa applicants must invest a significant amount in a genuine U.S. enterprise.
• Investment should be at risk, meaning potential loss if the business fails.

Qualifying Investment:

• Includes capital, equipment, inventory, cash, and tangible assets.
• Intended to generate profit and actively participate in business management.

Required Investment Amount:

• No fixed minimum investment amount.
• Investment must be substantial and sufficient for business viability.
• Proportionate to total cost of purchasing or establishing the enterprise.

Active Investment Efforts:

• Show evidence of completed investment or ongoing investment process.
• Provide financial transactions, bank statements, contracts, and business plan.
• Business plan outlines investment timeline and fund utilization.

Documenting the Investment:

• Maintain thorough documentation of investment activities.
• Keep records of financial transactions, receipts, contracts, and bank statements.
• Demonstrate the lawful origin of funds.

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