In this video attorney Jacob Sapochnick discusses a frequently asked question regarding the E-2 Investor Visa: Are loans or gifts a legitimate source of funds for the E-2 visa?
In order to get an E-2 visa as an investor in the United States, you must demonstrate that you will make a substantial investment in a new business enterprise or an existing business. As part of the application process, you must show the origin of the source of funds for that investment, and the source of those funds must be legitimate. Not all sources of funds will qualify for the E-2 visa. Many of our clients ask whether a gift of funds or a foreign bank loan will qualify as a legitimate source of funding for the E-2 visa.
Are gifts a legitimate source of funds for the E-2 visa?
Yes, provided the investor has possession of the funds, and the funds are irrevocably committed to the investor by the giver of the gift. The person that has given the gift to the investor must provide documentation showing the source of those funds to prove that the funds came from a legitimate source.
Are loans a legitimate source of funds for the E-2 visa?
Foreign loans are a legitimate source of funds for E-2 visa applicants. Where the foreign loans are secured by personal assets, this can be an indication that the investor is serious about the investment, given that the funds are tied to the applicant’s personal property, at a substantial risk to the investor. Such an indication of at-risk investment can help bolster an applicant’s E-2 visa application. However, it is not a good idea to seek a loan from a United States bank for many reasons.
For more information about the E-2 visa please click here.