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Threat to investor visas due to corona-related business losses
H. Roske & Associates LLP, April 22nd, 2020.
The central criterion of the E-2 Investor Visa is the willingness - in relation to the entire project - to risk significant costs. This is achieved by at least a partial investment - usually in form of start-up and travel costs, marketing, lease, etc. In addition to the financial benefit to the U.S. economy, this criterion demonstrates the seriousness of the business project.
However, this initial success in obtaining an E-2 visa is often only the first step, especially if long-term stays are necessary. E-2 Investor Visas are initially issued for a maximum of 5 years, but can be extended at will, provided the investment (business) is financially sound and creates additional jobs. In addition, the visa status is not only linked to the success of the company, but also to the position within the company itself. A change to another employer is practically impossible. Once you have managed to live and work in the USA on an E-2 visa, whether you can stay depends on the stability of your own job as well as the success of the business as a whole. This includes so-called "E-2 Dependent Visa" of family members.
From this point of view, the current burdens on the US economy are a particular challenge. E-2 companies need to be aware that while the visa authorities will be sympathetic to any imbalance in the company's fortunes due to current events, a loss of employment or closure of the company will also mean the end of the E-2 visa. And not only that: Even the conversion of an E-2 employee to short-time work means a violation of the conditions for the issue of the E-2 visa and risks the withdrawal of the visa.
It remains to be seen how the US government will react to these new challenges for companies and "expatriates", in particular whether apologetic measures will be taken to rescue E-2 visas that were lost due to Corona.
However, this initial success in obtaining an E-2 visa is often only the first step, especially if long-term stays are necessary. E-2 Investor Visas are initially issued for a maximum of 5 years, but can be extended at will, provided the investment (business) is financially sound and creates additional jobs. In addition, the visa status is not only linked to the success of the company, but also to the position within the company itself. A change to another employer is practically impossible. Once you have managed to live and work in the USA on an E-2 visa, whether you can stay depends on the stability of your own job as well as the success of the business as a whole. This includes so-called "E-2 Dependent Visa" of family members.
From this point of view, the current burdens on the US economy are a particular challenge. E-2 companies need to be aware that while the visa authorities will be sympathetic to any imbalance in the company's fortunes due to current events, a loss of employment or closure of the company will also mean the end of the E-2 visa. And not only that: Even the conversion of an E-2 employee to short-time work means a violation of the conditions for the issue of the E-2 visa and risks the withdrawal of the visa.
It remains to be seen how the US government will react to these new challenges for companies and "expatriates", in particular whether apologetic measures will be taken to rescue E-2 visas that were lost due to Corona.