In this video, we'll talk about a very common question that I often get is whether loans
or gifts counts towards source of funds for an e-2 visa as an investor.
As many of you know, in order to get an E-2 visa as an investor in the U.S. you really
have to demonstrate a substantial investment, but also you have to show where the money
is coming from for your investment.
It can't be just cash, it can't be just any amount or any source.
So it's very important as part of the process of building the E-2 visa application, make
sure to determine that the source of funds of the investor is legitimate and also to
allow the investor to bring it into various source of funds that are appropriate to that
particular person's situation.
For example, we have a lot of clients that are able to get source of funds by way of
gift.
A lot young entrepreneurs that are finishing school in the U.S. and they want to start
a business.
They're getting a gift from their families.
For example, we have a case where a young French national who just graduated from his
MBA top of his class was able to get a gift from his grandmother in France to start a
company that is going to be building a green energy, a furniture, so furniture that is
produced from a technology that is unique to what he learned in his MBA, but the money
came from his grandmother.
That was by way of gift.
Is that legitimate?
Yes, as long as the investor has possession of the fund, so the grandmother is able to
wire the funds into the bank account of the investor.
At that point, he gains possession of the funds and also we have documents, legal documents
from an attorney back home who has a document stating that this money is irrevocably committed
to the investment, so it's not a loan in this case.
The money is in his control for him.
He's not going to give it back to his grandmother.
He is also required to show where his grandmother, the person who gives the gift obtain the funds.
In this case, that has grandmothers sold a lot of real estate and we were able to document,
prove that the risk that were sold and that's how she got the money.
It's important to show how the person who gives the money is able to get the money and
the person receiving the money has control of that fund in his bank account before they
invest into the business.
That's a perfect way to be able to use gift money in an E-2 visa case.
Another way is loans.
We have a lot of people that have clients that they have some money, but I also want
to be able to get a loan in their home country to be able to support the business.
They always ask me, can I use a loan for.
First of all, I never recommend to use a loan from U.S. bank.
If you're a foreigner here either a student visa or is a tourist.
Turns out of business, If you're trying to get a loan from a U.S. bank or you have no
collateral here, it's going to be very difficult to get you an E visa and the U.S. embassies
are not keen to see foreigners trying to get money from U.S. bank.
If you get a loan from a foreign bank trying to bring them on into the U.S., if you're
secure that loan by personal assets.
So for example your home, your apartment, some tangibles, valuables that you are securing
in exchanged for that loan.
Then that a loan can be used as a, as a source of funds because the way the embassy is going
to look at it, they're going to say you have a lot to risk here.
You can't just walk away from the funds because if you do, you're going to lose your house,
you're going to lose your business, you're going to lose your, your cars or whatever
that thing that you used to secure the loan, there's a high risk right here for you if
you walk away from that, they're going to lose that.
That's really an accept…that's the only way where we can use a loan if you secure
it with a real estate or some personal belongings that are high value that will be one way to
be able to use the loan in an E visa fund.
Otherwise, if there's no security behind it, the U.S. embassies are going to like that.
They're going to say, well, what if you walk away from this business, there's no risk here
at all.
Remember, money has to be at risk.
So yes, loans or gifts can be used as a legitimate source of funds for E-2.
We've done this many times.
Again, hopefully this answers your question because this has been a very, very…it's
a common question.
We always get via email, on our Facebook page, on our YouTube channel about what is a legitimate
source of funds.
And specifically, can I use gifts or loans to fund my E-2 business?
Yes, you can.
Hopefully you found this video useful.
If you have any questions, post them in the comments below and if you have any other ideas
for videos you'd like me to make, let me know.
Send me an email, jacob@h1b.biz right here and I'll send you and I'll make those videos
for you.
Thanks for watching and we'll see you at our next video.