The E-2 treaty visa is an investor visa. To be approved for such a visa, an E-2 investor must have possession and control of the investment funds, and those funds must come from a lawful source. This is sometimes referred to as the “source of funds” requirement.
What’s a lawful source of the E-2 investment funds?
Here are the most notable ones:
- Earnings from Employment: If the E-2 investor earned money from his employment abroad, those funds can be used to make the E-2 investment.
- Proceeds from the Sale of a Business or Property. If the E-2 investor sold a business or property abroad, the proceeds from that sale are considered to have been obtained from a lawful source.
- Gifts. If someone gave the E-2 visa applicant a gift and confirmed it in writing, those funds can be used as part of the E-2 visa investment.
- Inheritance: If the E-2 visa investor obtained funds for his investment from an inheritance, that is considered to be a lawful source.
- Loans. Loans can be a lawful source of E-2 investment funds too, but not all loans. Loans secured by the investor’s personal assets, such as an unsecured loan or second mortgage on a home, usually can be included in the investment, but loans secured by commercial assets of the E-2 visa enterprise or mortgage debt, for example, typically cannot. In short, the loan must be personal to the E-2 investor and/or involve similar personal liability.
Regardless of which source of funds is used, an E-2 visa investor must provide clear and convincing documentary evidence to prove that the source was legal and acceptable as part of the application.
If you’d like to learn more about the source of funds requirement or any other aspect of the E-2 visa, schedule a consultation with us at www.bovinolawgroup.com or contact attorney Joe Bovino directly at firstname.lastname@example.org or via text or WhatsApp at +1 310 425 9933.
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How To Satisfy the E-2 Visa Source of Funds Requirement | Bovino Law Group
The United States is the land of opportunity, especially for entrepreneurs. An E-2 visa is an excellent option for foreign entrepreneurs who want to start or grow a business in the United States. The process for getting it is relatively simple, but qualifying for it can be pretty challenging.
To acquire an E-2 visa, you must ensure that you meet the qualifications, especially the E-2 visa source of funds requirement. In this blog post, we’ll guide you on how to satisfy the requirements of the E-2 visa source of funds.
An Overview of the E-2 Visa
The E-2 treaty visa is a non-immigrant investor visa that allows foreign entrepreneurs to come to the United States and invest in a new or existing business. This visa is available to citizens with a treaty of commerce and trade with the United States.
To qualify for an E-2 visa, you must show that you have invested, or are investing, a substantial amount of capital in a U.S. business. You must also show that you have possession and control of the funds.
What Is the E-2 Visa Source of Funds Requirement?
As part of the E-2 visa application process, you must show that you obtained the funds you use to invest in your U.S. business through legal means. This process is referred to as the “source of funds” requirement.
Common Sources of Funds for E-2 Visa
There are a few general sources of funds that can be used to satisfy the E-2 visa source of funds requirement. These include:
Personal savings from the income you’ve accumulated over time is the most common source of funds used to satisfy the E-2 visa source of funds requirement. Because of the accessibility of this type of funding, it is often the first source of funds that entrepreneurs think of when applying for an E-2 visa.
You will need to provide documentation to show that the funds are available and that you have control of the funds. This could include bank statements, investment account statements, tax returns, and payment records.
Loans from financial institutions or friends and family can also be used to satisfy the requirements of the E-2 visa source of funds. Aside from personal savings, this is the next most common source of funds used by E-2 visa applicants.
If you’re using a loan, you will need to provide documentation that shows the terms of the loan and your ability to repay it. This could include loan agreements, promissory notes, and evidence of collateral.
It is important to note that personal loans are more likely to be considered a source of funds than business loans. This is because most business owners use business loans as business expenses, which are not considered investments under the E-2 visa requirements.
Inheritance or Gifts
Another funding source you can use to satisfy the E-2 visa’s requirements is inheritance money and financial gifts.
If you’re using inheritance money, you will need to provide evidence that you legally obtained the inheritance and that you have control of the funds. This could include a copy of the will or trust, inheritance tax returns, and bank statements.
If you are using gifted funds, you will need to provide a gift letter from the person who gave you the gift. The gift letter should state that the funds are gifts, not loans. It should also show the relationship between you and the person who gave you the present and the amount of money that the other person gifted to you.
Another ideal option for satisfying the complex E-2 visa funding requirements is insurance policies. Insurance policies ensure that the money you need to invest is available and that you have control of the funds.
When using insurance policies as a source of funding, you will need to provide evidence of the policy, its value, and your ownership of the policy. This could include a copy of the policy, insurance declarations page, and evidence of premiums paid.
If you have sold property or business, you can use the proceeds from the sale to satisfy the E-2 visa source of funds requirement.
You will need to provide documentation to show the transaction of the sale. This could include a copy of the sales contract, deed, and bank statements.
Contact an Immigration Assistance Lawyer
The E-2 visa source of funds requirement is just one of the many requirements you will need to meet to obtain an E-2 visa. Regardless of which source of funds you decide to use, it is crucial to ensure that you can provide convincing documents and evidence that you obtained the source through legal means.
If you need assistance with your E-2 visa application, an immigration lawyer can help you gather the necessary documentation and evidence to satisfy the requirements of the E-2 visa.