A lot of times, I, Martin J Lawler, have heard a lot of people complain about how tough it was to for an E1 and E-2 visa holders to have access to a loan. We will explore the reasons, before that, let’s explain what E1 and E-2 visas are.
What is Martin Lawler’s definition of an E1 Visa?
When we look at the E-class visa, we have no other option but to say that this class of visa is a great option for establishing U.S. residency, especially for entreprenuers, as well as employers. Why is this so? Both the E1 and E-2 visas offer the holders the opportunity to have access to the benefits that come with having a permanent legal status. That’s not all, as both visas can easily be extended as long as one wants, so long as the E1 and E-2 visa requirements are met.
When we talk of the E1 visa, we are speaking of the “treaty trader” visa. This permits foreigners to live in the US for about two years if they have the aim is doing substantial trade. After the first two years, assuming it is seen that they are fulfilling all requirements, the E1 visa can be renewed as many times as desired.
For the E1 visa, your agent is faced with a strict definition of what the trade should be. It should be noted that you should have at least fifty percent investment of whatever trade that you wish to undergo between the US and the treaty nation.
Martin Lawler advises that the trade can be anything, from the selling of goods to services. The services could be communication or even banking, as long as the visa requirements are met.
What is Martin Lawler’s definition of an E2 Visa?
This is called the “treaty investor” visa. It is meant for those that have enough funds to invest in a business in the U.S. For you to gain access to the United States through this means, you must have met the main E-2 visa requirements, which is to invest a large number of your funds into an enterprise set in the United States.
The E-2 visa is similar to the E1 visa, as it has a validity period of two years. The two years is to check if the investor really did what he promised to do. After it has expired, it can easily be renewed for as long as desired, which is based on the lifespan of the business invested in.
To get this visa, you need to meet the following E-2 visa requirements:
Usually, there is no limit on the minimum amount that should be invested in a business, but it is advisable that the amount invested should be able to make the business successful. I, Martin Lawler, usually advise that a minimum of $200,000 should be invested because it is a substantial amount.
It should be noted that you can invest below that amount. Some applicants have been able to get into the US with the E-2 visa, with as little as $100,000 or even $50,000 in investment funds.
As the applicant, you are expected to be the principal investor and have an interest in running the business that you invested in. What this means is that you should have at least fifty percent of the stake in the company that you invested in. There may be some exceptions to this.
As an applicant, the amount invested should scale through the proportionality test. What this means is that after weighing the amount invested with what the company is worth, it should be shown that the former is indeed large enough.
That’s not all, as it is expected that the investment made should be enough to employ not only the applicant but also five other persons.
While you apply for the E-2 visa, note that your family members can also be accepted.
Now, that we are done with explaining what an E1 and E-2 visas are, we can now look at why E1 and E-2 visa holders are turned down for loans.
Why is it Tough for E1 and E2 Visa Holders to Get a Loan?
When E1 and E-2 visa holders come into the United States, they usually feel that they would be smooth sailing because they were financially stable in their home countries, but this is not the fact. It is common to see them having a lot of issues when it comes to getting a loan, and having their financial profile in the country built.
One thing that makes E1 and E-2 visa holders lives difficult is the fact that they do not possess a financial history or credit rating in the U.S. They might have it in their home country, but what happens in their home country doesn’t translate to the U.S.
What do banks in the U.S. use in determining if a person is eligible for a loan or not is their credit history? This determines if they are creditworthy or not to get the loan. When someone has a poor credit rating or no credit rating at all, getting a bank loan becomes a huge problem. The credit rating is what controls the entire financial system in the United States. Before you can get a mortgage in the country, you need a credit rating. Before you can get a car financing, your credit rating will be checked. This is one big issue that a lot of E1 and E-2 visa holders face.
Another issue that may stop E1 and E-2 visa holders from getting the bank loan is the fact that there are limits on how long they may stay in the country if they don’t meet the requirements. When banks of this, they realize that giving out loans to E1 and E-2 visa holders may not be favorable to them. Bank loans are designed to be paid in installments, and when the person that is getting the loan is not sure to be in the country for a long time, the bank rejects the loan application.
When you compare the severity of these concerns on those that have the E1 and E-2 visas, you will realize that they are smaller compared to those that hold other visas. Why is this so? E1 and E-2 visa holders are known to hold a fair amount of resources. Some lenders consider the fact that these E1 and E-2 visa holders have a substantial amount invested in the country, and don’t mind offering them loans. With the loan, the E1 and E-2 visa holders can easily have their credit built.