E2 Visa vs EB-5 Visa – The 7 Key Differences

The E2 visa and the EB-5 visa are both great options to consider if you are an investor or entrepreneur looking to come to the US.

At first glance, both of these visas appear to be very similar. Both visas allow you to come and work in the US based on making an investment in a US business.

Yet, both of these visas are very different in many ways.

The right visa for you will depend on your particular immigration goals and your individual circumstances.

This article will go over the 7 main differences between the E2 visa and the EB-5 visa.

When you are finished reading, you should have a better understanding of which visa is best for you.

If you have any questions about any of the points we cover, feel free to email me at Michael@AshooriLaw.com. I’m here for you.

Now, lets get started…

Roadmap of what we will cover:

1. Nonimmigrant vs. Immigrant Visa

2. Nationality Requirement

3. Minimum Investment Amount

4. Job Creation

5. Source of Funds

6. Timeline

7. Work Authorization

1. Nonimmigrant vs. Immigrant Visa

The first major difference between the E2 visa and the EB-5 visa is that the E2 visa is a nonimmigrant visa, and the EB-5 visa is an immigrant visa.

Nonimmigrant visas are temporary and do not directly lead to a green card.

Immigrant visas lead to a green card and lawful permanent residence in the US.

This means that with an EB-5 visa you are eligible to get a green card and become a lawful permanent resident.

With an E2 visa, you can still live and work in the United States while you are in lawful status, but your visa will not directly lead to a green card. In order to go from an E2 visa to a green card, you will need to “adjust status” to an immigrant visa status, or apply for an immigrant visa.

Also, because the E2 visa is a nonimmigrant visa, you are required to have the “intent to depart” the US once your E2 status ends.

The EB-5 visa does not require you to have the intention of leaving the US.

2. Nationality Requirement

The next major difference between the EB-5 visa and the E2 visa has to do with your nationality.

The E2 visa is only available to people possessing the nationality of a country with an E2 treaty with the US.

To check whether your country has an E2 treaty with the US, you can visit the US Department of State website here:

https://travel.state.gov/content/visas/en/fees/treaty.html

I’ve also typed out the list of countries here:

Albania, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belgium, Bolivia, Bosnia and Herzegovina, Bulgaria, Cameroon, Canada, Chile, Taiwan, Colombia, Congo (Brazzaville), Congo (Kinshasa), Costa Rica, Croatia, Czech Republic, Denmark, Ecuador, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Grenada, Honduras, Iran, Ireland, Italy, Jamaica, Japan, Jordan, Kazakhstan, South Korea, Kosovo, Kyrgyzstan, Latvia, Liberia, Lithuania, Luxembourg, Mexico, Moldova, Mongolia, Montenegro, Morocco, Netherlands, Norway, Oman, Pakistan, Panama, Paraguay, Philippines, Poland, Romania, Serbia, Senegal, Singapore, Slovak Republic, Slovenia, Spain, Sri Lanka, Suriname, Sweden, Switzerland, Thailand, Togo, Trinidad & Tobago, Tunisia, Turkey, Ukraine, United Kingdom, Yugoslavia.

There are quite a few major countries that do not have E2 treaties with the United States, including:

• China

• Russia

• Brazil

• India

This means that nationals from countries that do not have E2 treaties with the US are not eligible for an E2 visa.

On the other hand, the EB-5 visa has no nationality requirement. You can be a national from any country and be eligible for an EB-5 visa.

3. Minimum Investment Amount

The next major difference between an E2 visa and an EB-5 visa has to do with you minimum investment amount.

For an EB-5 visa, you are required to invest a minimum of $1 million in a US business. If you invest in a “targeted employment area” you can qualify to invest a reduced amount of $500,000.

A targeted employment area is an area of high unemployment or a rural area.

On the other hand, the E2 visa does not have a set minimum investment amount. To get an E2 visa, you need to invest a “substantial” amount in a US business. The regulations do not clearly define a set minimum amount that is considered substantial.

Instead, the minimum investment amount for an E2 visa is based on a “proportionality test.”

This means that, for an E2 visa, the amount you invest will be compared to the total amount of a comparable established business.

For lower cost businesses, your investment is expected to be a larger proportion of the total established business cost. For higher cost businesses, your investment can be a lower proportion of the overall established business cost.

This concept can be confusing.

As a rule of thumb, we recommend that your investment should not be less than $50,000 for an E2 visa.

4. Job Creation

The next major difference between the E2 visa and the EB-5 visa has to do with job creation.

To get an EB-5 visa, you are required to create 10 full-time jobs for US workers. These jobs must be created before you get your permanent green card.

To get an E2 visa, there is no formal requirement for you to create jobs.

Instead, to get an E2 visa, you must show that the business you are investing in is not “marginal.”

A marginal business is a business that does not have the present or future capacity to generate enough income to provide more than a minimal living for the E2 investor and their family.

So to meet the marginality requirement for an E2 visa, you can show that your business will generate enough income to provide more than a minimum living for you and your family.

You could also meet the marginality requirement by showing that your business will have the need to hire US workers and therefore have a positive impact on the US economy.

So for an E2 visa, you can show US job creation but it is not necessary the same way it is for an EB-5 visa.