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The United States issued approximately 54,000 E-2 Visas to entrepreneurs in 2024. For Canadian entrepreneurs who wish to launch or invest in an American business, the E-2 has become an increasingly popular visa option. Many see it as a much more attractive option in the short run than pursuing an EB-5 visa. There are significant differences between these two visa types, mainly that while E-2 visas are for nonimmigrant intent, EB5 visas are for investors seeking permanent status in the U.S.
What Are the Benefits of an E-2 Visa?
Investment Amount
While EB5 entrepreneurs need to invest a minimum of $800,000 in a Targeted Employment Area or over $1.05 million in a business, the E-2 visa does not have a minimum investment limit. However, the amount invested must be considered substantial and is typically at least $100,000 (although it can be even lower). The money invested must also be irrevocable. Overall, the lower investment threshold makes the E-2 visa much more affordable an option for investors.
Application Costs
Investors seeking E-2 status must file Form I-129, Petition for a Nonimmigrant Worker. The current filing fee for Form I-129 is $1,015, with an additional fee of $470 for each dependent included in the application. Additional costs may apply for assistance with preparing a business plan and for hiring an attorney to file the petition. In contrast, the fee for filing Form I-526E to apply for EB-5 status is considerably higher, at $11,160. For those adjusting status from within the United States, there is an additional cost of $1,440 per applicant.
Accessibility
The U.S. government issued over 3400 EB-5 visas to Canadians at last count in 2023. Meanwhile, over 6600 E-2 visas were issued to Canadian investors in the same period.
Consequently, nonimmigrant E-2 visas are much more accessible to the average investor than EB-5 immigrant visas, which require a higher level of proof. When it comes to the chance of a successful outcome, E-2 visas have an 87% to 93% approval rate, while EB5 visas have a lower approval rate of 70% to 80%.
Are There Advantages for Canadians Seeking E-2 Visas?
Canadian entrepreneurs do enjoy some advantages when seeking E-2 visas, than other international investors.
- E-2 visas for Canadian nationals have a maximum validity of five years, while nationals from many other countries may only receive E-2 visas valid for one or two years, based on the country’s reciprocity schedule.
- Another benefit for Canadian nationals is that E-2 visas can be renewed indefinitely in five-year increments while their business remains operational and continues to meet the requirements.
- Canadian E-2 visas permit multiple entries into the U.S. This makes it much easier for Canadians to travel in and out of the country while their visa is valid.
- Applying for an E-2 visa at a U.S. consulate in Canada is often faster and more straightforward compared to applying in many other countries.
E-2 visas have been growing in popularity for Canadian entrepreneurs seeking to launch a business in the U.S. If you are a Canadian national who is interested in pursuing an E-2 visa, or if you have questions about another immigration legal matter, contact U.S. Immigration Law Counsel for a strategy session to discuss your case.
