The United States offers several investor visa options to attract foreign investment and stimulate the economy. Two of the most popular investor visas are the E-2 visa and the EB-5 visa. Although both visas are designed for foreign investors, they have significant differences in terms of eligibility requirements, investment thresholds, and application processes. In this blog, we will explore the key differences between the E-2 visa and the EB-5 visa.
Eligibility Requirements
The E-2 visa is available to citizens of countries that have a treaty of commerce and navigation with the United States. To be eligible for the E-2 visa, the investor must demonstrate that they will invest a substantial amount of capital in a U.S. business and actively participate in the business’s management. Additionally, the investor must demonstrate that the investment will create jobs for U.S. workers.
The EB-5 visa, on the other hand, is available to investors who invest a minimum of $1.05 million in a U.S. business or $800,000 in a targeted employment area. The investor must also demonstrate that the investment will create at least 10 new full-time jobs for U.S. workers. Unlike the E-2 visa, there are no nationality restrictions for the EB-5 visa.
Investment Threshold
The investment threshold for the E-2 visa is flexible and depends on the business’s size and the investment needed to operate the business. There is no minimum investment requirement for the E-2 visa, but the investment must be substantial.
The investment threshold for the EB-5 visa is significantly higher. The investor must invest a minimum of $1.05 million in a U.S. business, or $800,000 in a targeted employment area. A targeted employment area is a rural area or an area with high unemployment.
Job Creation Requirements
Both the E-2 visa and the EB-5 visa require the creation of jobs for U.S. workers. However, the EB-5 visa requires the creation of at least 10 new full-time jobs, while the E-2 visa does not have a specific job creation requirement.
Application Process
The application process for the E-2 visa is relatively straightforward. The investor must file Form DS-160, pay the application fee, and attend an interview at a U.S. Embassy or Consulate in his or her country of citizenship or residence. The investor must also provide evidence of the investment, such as a business plan and financial statements.
The application process for the EB-5 visa is more complex. The investor must file Form I-526, which includes detailed information about the investment and the business plan. Once the Form I-526 is approved, the investor must file Form I-485 to adjust their status to permanent residency or apply for an immigrant visa with the U.S. Embassy or Consulate abroad.
Timeframe
The processing times for the E-2 visa are generally faster than the EB-5 visa. The E-2 visa can be processed within a few months, while the EB-5 visa can take several years to process. Additionally, the E-2 visa is a non-immigrant visa, which means that the investor must renew their visa every two years. The EB-5 visa is an immigrant visa, which means that the investor can obtain permanent residency if they meet the eligibility criteria.
In conclusion, both the E-2 visa and the EB-5 visa offer significant benefits for foreign investors who wish to invest in the United States. However, they have significant differences in terms of eligibility requirements, investment thresholds, and application processes. If you are considering investing in the United States, it is essential to work with an experienced immigration attorney who can help you choose the right visa option and guide you through the application process.