Immigrants who wish to come to the United States temporarily for the purpose of working may have considered applying for an E-2 visa, especially if they come from a treaty country. However, one of the E-2 visa requirements is being able to make a substantial investment in a U.S. company. And not only do you need to make an investment, but you must also provide proof that the funds come from a lawful source. Keep reading to find out what the E-2 visa source of funds is and how you can prove this in your application.
What Counts as E-2 Investment Funds?
One of the main requirements when you apply for an E-2 treaty investor visa is to invest a substantial amount of funds in a United States company. Because of this requirement, not everyone will qualify for an E-2 visa, even if their home country is a treaty country, like Canada.
That being said, the capital you invest does not have to come in the form of cash. You can use many different types of capital as long as you have legally obtained it and can trace its origins.
Here are some examples of acceptable sources of capital according to the USCIS:
- Personal savings: Savings earned through lawful employment, investments, or business operations.
- Personal or unsecured loans: Capital from loans with your signature or secured through personal assets.
- Gifts or inheritances: Funds legally obtained by way of a gift or an inheritance from a family member or a third party.
- Business assets: Capital can also include any money you have invested in the company by way of tangible or intangible assets, such as intellectual property, escrow funds, startup expenses, or equipment.
On the other hand, some examples of investments that don’t qualify include loans secured with assets from the business itself, stock portfolios or crypto, or illegally sourced or untraceable funds.
What Does “Lawful Source of Funds” Mean?
Getting the funds you need to make an E-2 investment in a U.S. business is just one step of the application process. You also need to provide an E-2 investment paper trail as a way of establishing a lawful source of funds. This is important since the USCIS does not want to support applicants who have obtained funds in an unlawful way.
So, to establish a lawful source of funds for your E-2 investment, you have to provide evidence that the capital came from legitimate activities or transactions that are legal in both the United States and your home country. If you aren’t able to do this in your application, it’s very likely that the USCIS will request additional evidence or even deny your application.
Because this requirement can seem quite vague, there isn’t a single form of proof that you need to establish a lawful source. Instead, you should work with an immigration attorney to build a coherent and verifiable story of where the capital has come from and how you obtained it through various forms of documentation.
How to Document the Path of Funds
As a rule, the kind of documentation you need to provide with your E-2 application depends on what form your investment takes. However, there are several different types of documentation you should consider including as a way of establishing a lawful source of funds:
- Bank statements
- Purchase agreements
- Business account records
- Wire transfer receipts
- Escrow documentation
You may also need to provide additional evidence or explanations for anything that the USCIS may see as a red flag. This can include things like unusual transactions, offshore transfers, large cash movements, etc.
Proving the Money Is Actually at Risk
Another thing you need to understand about the E-2 visa investment requirement is that your investment has to be at risk. At risk means that your funds must be vulnerable to either partial or total loss if the U.S. business fails.
In addition to being at risk, your investment must be active. For example, cash idly sitting in a bank account doesn’t qualify since you could easily withdraw the money and walk away with your investment in hand.
Common Issues With E-2 Visa Investment Funds
The USCIS will look at many things when it comes to E-2 visa investments. It will also evaluate every case slightly differently, taking into account the unique circumstances and the types of investments. Because of this, there is a lot of room for error, which could cause delays for your application or even result in a denial.
So, here are some examples of common issues to be aware of when making your E-2 investment or documenting your investment funds:
- Incomplete fund tracking
- Cash transactions with limited records
- Large and unexplained deposits
- Gifts without showing the donor’s source of funds
- Using passive investments
- Inconsistent financial records
- Large gaps in financial records
- Using funds that aren’t at risk
- Relying on business loans as collateral
To avoid running into these issues, you should also strongly consider working with an immigration attorney. An attorney can help you pick the best type of investment to make and provide clear and consistent documentation to prove a lawful source of funds for the USCIS.
Hire an Immigration Attorney Today
Are you worried about being able to provide proof of lawful investor source of funds for your E-2 application? Contact us today at U.S. Immigration Law Counsel at 800-666-4996 to speak with an immigration attorney about your situation. We will deal with the government, so you don’t have to!
FAQ Section
Can E-2 investment money come from a gift?
Yes. Just keep in mind that you still need to clearly establish a lawful source of funds through documentation.
Can borrowed money qualify for an E-2 investment?
It is possible to use borrowed funds for your E-2 investment, but it depends on the type of loan and how it’s secured.
Do I need records for every transfer?
Clearly recording and documenting all transfers can help you establish a paper trail to prove a lawful source of funds. And while this may not always be entirely possible for all transfers, you should provide as many records as possible.
