An E2 visa requires the investor to make a “substantial investment.”  The question arises whether a promissory note can  count toward the substantial investment requirement?

A promissory note can count toward the substantial investment requirement for an E2 visa provided the investment is “at risk.”  These are some of the guidelines used in EB5 investor visa cases, which provides some guidance as to how the government might rule on E2 cases.

” (1) A promissory note secured by assets owned by a petitioner can constitute capital under 8

C.F.R. § 204.6(e) if: the assets are specifically identified as securing the note; the security

interests in the note are perfected in the jurisdiction in which the assets are located; and the

assets are fully amenable to seizure by a U.S. note holder.

(2) When determining the fair market value of a promissory note being used as capital under

8 C.F.R. § 204.6(e), factors such as the fair market value of the assets securing the note, the

extent to which the assets are amenable to seizure, and the present value of the note should

be considered.

(3) Whether a petitioner uses a promissory note as capital under 8 C.F.R. § 204.6(e) or as evidence of a commitment to invest cash, he must show that he has placed his assets at risk. In

establishing that a sufficient amount of his assets are at risk, a petitioner must demonstrate,

among other things, that the assets securing the note are his, that the security interests are perfected,that the assets are amenable to seizure, and that the assets have an adequate fair market value.”

To read more about requirements for EB5 investment visas, follow this link.

In other words, there must be collateral securing the note, the note must be properly perfected, the assets must be located in the U.S., and the assets must be capable of being liquidated.  Further, the applicant must personally guarantee the note.  The note cannot be a corporate obligation only secured by the assets of the company.  As noted, the requirements for promissory notes are stringent.   If you are a foreign investor seeking an E2 visa to enter the U.S., contact an experienced immigration attorney to handle your case.