If you are willing to put up a substantial amount of capital to invest in an enterprise that will employ U.S. workers, the U.S. Department of State (DOS) might be interested in extending an E-2 visa to you, your spouse, and some key employees. However, many potential E-2 visa applicants are hesitant to apply because they have misconceptions about how much they actually have to invest in a U.S. business. This is but one consideration we will address in this blog, which will also help you decide whether or not the E-2 visa could be useful for your situation. Who Uses the E-2 Visa? Nationals of a country with which the U.S. has a treaty recognizing mutual commercial goals are welcome to apply for an E-2 visa. Japan, Australia, Taiwan, France, Germany, Italy, South Korea, Mexico, Spain, Sweden, and the U.K. are just a few of the countries that have treaties recognizing E-2 visas. Japanese nationals account for a significant chunk of the E-2 visas issued each year. Those who fulfill the nationality requirement must then show they have invested or are in the process of investing a substantial amount of capital in a “bona fide enterprise” in the U.S. The investor must also show that he or she is seeking to come to the U.S. for the sole purpose of developing and directing the enterprise. E-2 visas are not reserved solely for the investors or owners. You may be able to bring along managers, supervisors and employees with specialized knowledge. Additionally, they must be of the same nationality as you, the investor. Remember, though, that the U.S. wants to see an E-2 business employ American workers and pump money into the U.S. economy. How Much Do Investors Need to Contribute? There is no minimum amount of capital required for investors. The sufficient amount for your particular enterprise, though, depends on the size and nature of your company. The smaller the company, the greater the investment must be (in proportion to the company’s overall cost). For example, the amount for an E-2 investor who owns a consulting company will probably be much different than an investor who is seeking to open an automobile manufacturing plant. The key is determining the amount of your investment going towards operational costs. When you’re applying for an E-2 visa, the U.S. Embassy will look at your balance sheet and other financials to determine an acceptable investment amount. If, at first glance, it does not appear you will meet the requirements, our firm can advise you on optimal practices to present a more favorable financial […]
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In the recent past, the demand for the 85,000 H-1B visa slots the U.S. government issues each year has exceeded the supply. The nonimmigrant visa, which is reserved for U.S. non-citizens to fill positions for “specialty occupations,” is set to become more difficult to obtain after federal agencies issued new rules for the H-1B category in early October. Who is the H-1B Visa Geared Toward? Broadly speaking, the H-1B visa is available for a specific subset of “skilled” foreign workers. More specifically, H-1B visa holders have at least a bachelor’s degree (with many of them having graduate- or doctorate-level degrees) and work in specialty level occupations. Technology companies and other outfits in the STEM fields often make use of the H-1B visa category. Of the 85,000 H-1B visas granted each year, 20,000 are reserved for foreign workers who received an advanced degree from a U.S. institution. What are the Changes? In short, the changes will make using the H-1B visa program cost-prohibitive for many U.S. employers. Based upon the new rules from the Department of Labor, which immediately went into effect, employers must pay entry-level workers wages in the industry’s 45th percentile. Higher-skilled workers, which previously had to receive wages in the industry’s 67th percentile, must be offered a wage in the 95th percentile. The rules also restricted the definition of a “specialty occupation” in the context of the H-1B visa program. The USCIS explained that a general degree (such as liberal arts) is not sufficient to qualify as a specialty occupation. Additionally, the changes require the H-1B position to be directly related to the degree earned by the visa holder. In the release multiple federal agencies announced the modifications to the H-1B visa program, including the Department of Homeland Security, the U.S. Citizenship and Immigration Services, and the Department of Labor. The purported reason for the changes is to preserve jobs and opportunities for U.S. citizens amid the COVID-19 pandemic. Also cited in the newly published rules are statistics allegedly showing wage stagnation in certain industries. What Happens Now? As of Oct. 13, 2020, the DOL rules are still in effect. The USCIS rules are set to take effect in 60 days. Besides making the program more expensive for U.S. employers and recent U.S. graduates, federal agencies have signaled that they will take a renewed interest in enforcing the H-1B rules. The federal government estimated that the number of H-1B petitions would decrease by a third in response to the changes. Some have suggested that the timing and substance of the new rules are politically motivated and that the […]
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President Trump signed a new Presidential Proclamation on June 22, 2020 barring the entry of certain work visa holders from entering the United States. The Proclamation is effective at midnight EDT June 24, 2020, and will continue through December 31, 2020. The Proclamation suspends issuance of visas for individuals seeking entry to the U.S. using an H-1B, H-2B, J-1 (intern, trainee, teacher, camp counselor, au pair or summer work travel participant) or L-1 visa. The Proclamation also suspends entry for dependent spouses and family members in these visa categories. Further, the Proclamation only applies to individuals if they are: Outside the U.S. on the effective date of the Proclamation (June 24, 2020); Do not possess a non-immigrant visa that is valid on the effective date of the Proclamation; and Do not have an official travel document other than a visa that is valid on the effective date of the Proclamation. There are two major exemptions to the suspension: individuals providing temporary labor essential to the U.S. food supply chain; or individuals whose entry is in the national interest as determined by the U.S. Secretary of State, U.S. Secretary of Homeland Security or their designees. Any modifications to the Proclamation will be considered within 30 days of June 24, 2020, and every 60 days thereafter. Further, the Proclamation directs U.S. federal agencies to undertake the following actions: Issue regulations to ensure that those individuals already admitted, or seeking admission, on an EB-2 immigrant visa, EB-3 immigrant visa, or H-1B nonimmigrant visa do not limit the opportunity for U.S. workers. Undertake investigations of H-1 Labor Condition Application (LCA) violations. Change the process of allocating visas and ensuring that the presence of H-1B workers in the U.S. does not negatively affect U.S. workers, such as giving priority to certain individuals based on certain criteria. Ensure that an individual cannot apply for a visa or admission to the U.S. until after completing biometrics, including photographs, signatures, and fingerprints; and Prevent certain individuals who have been ordered removed from the U.S., who are removable from the U.S. or have been arrested for, charged with or convicted of a criminal offense, from being able to work in the U.S. Finally, the Proclamation extends the April 22, 2020 Proclamation banning entry of certain individuals applying for immigrant visas through December 31, 2020.
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